ACCC warns on ‘high quality’ phony adviser scams

Tony Papagiannopoulos was scammed out of $200,000 following multiple conversations with a phony adviser over the phone, with JP Morgan telling InvestorDaily last week that they notified ASIC in April as soon as the firm became aware of the scam.

An ACCC spokesperson told ifa on Tuesday that Mr Papagiannopoulos’ is not the first case they have seen of that kind on their Scamwatch website.

“Scammers create high quality prospectus documents using images and documentation available on the websites of these legitimate companies. They then change the email and phone contact details to their own,” the spokesperson said.

“We’ve also seen instances of romance baiting, where scammers meet their victim on a dating app and convince them to invest.”

ACCC shared the below tips with ifa on how people can best protect themselves and their clients from scammers:

• If an opportunity sounds too good to be true, it probably is. Be suspicious of investment opportunities that promise a high return with little or no risk.
• Never give your details to an unsolicited caller or reply to emails offering financial advice or investment opportunities – just hang up or delete the email.
• Always obtain contact details from a company’s official home page. Be aware that scammers may create fake websites with stolen logos to imitate well-known companies.
• Do not respond to emails from strangers offering predictions on shares, investment tips, or investment advice, especially if you’ve met this person online.
• If a romantic prospect suggests an investment company to you, navigate to the website independently by searching for the company name. Do not use links they provide.
• If you are going to make an investment, check that the investment company you have been recommended is licensed by ASIC.
• Don’t feel pressured to act quickly. If you are thinking about investing, always seek independent legal and financial advice.
• You can check if a financial adviser is registered via the ASIC website. Any business or person that offers or advises you about financial products must be an AFS licence holder.
• The Moneysmart website has a list of steps to take to prepare for investing. It also contains a list of companies you should not deal with.

Financial services ombudsman AFCA has warned that these types of scams are becoming “increasingly common and sophisticated”.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.