A new report by the Australian Competition and Consumer Commission (ACCC), titled Targeting scams: report of the ACCC on scam activity 2015, shows there were 105,200 scam complaints last year, with $85 million reported lost.
In 2014, the ACCC received 91,600 scam complaints, with almost $82 million reported lost.
“ASIC is alerting the public to the ways they can protect themselves from scams that are designed to steal their money,” said ASIC deputy chairman Peter Kell.
These tips include checking ASIC’s MoneySmart website for a list of risky companies, asking whether the company has an AFSL or an AFCL and seeking a second opinion from a financial adviser.
“Only put your money with a managed fund or other investment that is licensed by ASIC, and speak to a licensed adviser if you want investment advice,” Mr Kell said.
“To avoid being a victim of a scam, hang up the phone, do not respond to the email or stop dealing with the person. It’s important not to let anyone pressure you into making decisions about your money or investments.”
The ACCC’s scam data shows there are variety of scams, including investment and ‘get rich quick’ scams, that are hitting Australians.
Typically, these scams will offer quick returns and tax-free benefits, big rewards for small upfront payments and magic software that claims to predict sporting results.
Of the scams reported to ASIC in 2015, the top types include overseas cold calling about investment opportunities, money transfer schemes and fake debt scams.
The scams reported to ASIC generally come from overseas.
“In many cases, the pitch to consumers is so professional, slick and believable that it is hard to tell these are not genuine financial opportunities,” Mr Kell said.
“Scammers have sophisticated sales practices that include call scripts, false paperwork, fake websites and made-up referees.”
My experience with ASIC is different to views expressed.
As a planner I reported a scam in writing to ASIC. A couple of weeks later received a phone call from ASIC requesting further information. I provided ASIC with my search information, plus the outcomes of my investigation.
The particular company is now listed on the ASIC scam register despite no complaints from investors actually losing money.
Unfortunately not much can be done for individuals who are scammed as majority of scams end up with money heading overseas. How do you educate the general public to be vigilant. There will always be an element of society that will fall foul of a scam. Its human nature.
The fact is ASIC are running a business. Scammers don’t pay fines or levies so not worth pursuing….but BANKS….OMG plenty of shareholder capital there to drain whenever a scandal is produced (and I mean produced)
I have had similar experiences to the previous notes and also why would a financial planner see these clients given the amount of paper work required with it highly unlikely the clients would pay the fee. I believe it is called the “advice gap” in the UK. Again rules designed to punish those that follow them and those that deliberately seek to avoid them are ignored.
Yes have had same issue Gerry, one we raised with ASIC came back saying no member o fthe public had raised a complaint about being defrauded so they couldn’t do anything. Horse bolting and gates comes to mind.
These openly fake scam artists somehow can’t be touched but Medcraft ahas openly stated wuth this multimillion $ new funding he will continue pursuing financial planners! Salem witch hunt while the real scammers get away with crimes.
I reported a scam to ASIC in writing. Had scam written all over it, fake websites, fake office, fake awards, openly discussed in forums as being fake, harassing my clients. The ASIC officer said they were concerned they didn’t have an AFSL? The written response was not enough evidence of a scam so no action taken.