There’s one thing that never disappears from the financial world – fraud.
Old and unsophisticated scams are given new life by rapidly increasing technology and the fact money has become little more than digits on a screen.
Life savings can disappear in the blink of an eye and often overseas.
Australia is becoming a prime target for scams, specifically because of our large superannuation pool.
With the growth of self managed super funds, the opportunity (and temptation) to move money around and chase returns rises, likewise so does the potential to move money into the hands of a scammer.
And the scammers know this.
An unsolicited phone call regarding investments that promise amazing no risk returns should start to raise alarm bells.
These calls are often from overseas “boiler rooms,” essentially call centres of scammers pushing dodgy or non-existent investments.
They are relentless and extremely pushy, trying to compel you to act before you miss out on a so-called ‘fantastic opportunity’.
Seniors are often prime targets for such scammers because history shows they can be worn down, intimidated or reassured through seemingly endless phone calls.
Caving in and transferring any money to an investment cold caller probably means that money will never be seen again, as such scams are beyond Australian jurisdiction.
Sometimes it doesn’t even require a phone call; a Queensland senior recently became prey after clicking a dodgy advertising banner on a legitimate website.
The banner took him to a scam website offering amazing investment returns; he transferred $650,000 from his superannuation to the scammers.
I think you can guess the rest – he’s now $650,000 poorer!
From the perspective of a financial advisor, I always find it interesting how people will baulk at paying for legitimate advice but then have no trouble turning their life savings over to dodgy investment schemes, only to see it all disappear.
There’s no such thing as easy money!
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL / ACL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. Need help with your financial your financial future, we think we’re Australia’s top financial adviser.
