How to Spot and Avoid Investment Scams in 2025

• Investment Scams
• Financial Fraud
• Online Safety

Investment scams are on the rise in Australia, using fake endorsements and high returns to lure victims. Learn how to protect your money and identity.

Investment Scams Are Booming—Here’s How to Stay Safe

Investment scams are becoming increasingly sophisticated, targeting Australians through ads on social media and fake endorsements by public figures. These scams are designed to appear trustworthy, making them harder to detect than ever before.

The Red Flags of an Investment Scam

Scammers promise high—or slightly better than average—returns to gain your trust. Once you're engaged, they may ask you to:

• Share personal or financial details
• Download apps or software linked to their 'platform'
• Transfer money to unfamiliar or overseas accounts
• Pay fake 'withdrawal fees' or 'taxes' before accessing your funds

You might see small 'profits' early on to create the illusion of success. These initial payouts are designed to build trust and get you to invest more before disappearing with your money.

Protect Yourself from Investment Fraud

• Do independent research: Always verify investment platforms and schemes via reputable sources, like ASIC’s Moneysmart or Scamwatch.
• Check the endorsement: Just because a public figure appears in an ad doesn’t mean they support it. Scammers often use stolen images and fake testimonials.
• Question high returns: Be wary of any investment claiming guaranteed or unusually high profits. If it sounds too good to be true—it probably is.
• Never rush decisions: Scammers use pressure tactics to get quick commitments. Take your time and consult someone you trust.
• Use secure channels: Don’t share personal info or transfer money through unverified apps or websites.

What to Do If You’ve Been Targeted

If you suspect fraud or have already shared information or transferred funds, act immediately:

• Contact your bank or financial institution to report the fraud and secure your accounts.
• Reach out to your bank's Customer Protection Team, which should be available 24/7.
• Report the scam to Scamwatch and the Australian Signals Directorate’s ReportCyber portal.

The sooner you act, the better your chance of limiting losses and preventing further damage.

Final Thoughts

Scammers are constantly evolving their tactics. The best defence is education and caution. Always verify, never rush, and when in doubt—ask for help. Don’t let slick ads or fake endorsements fool you into giving away your hard-earned money.