Investment scams
Investment scams use fake news, dodgy statistics, and phoney celebrity endorsements to advertise false money-making opportunities. These include get-rich-quick, multi-level marketing and ‘guaranteed’ investments, promising high returns with low risk. They use a variety of pressure tactics to steal your money. If someone contacts you to offer an investment opportunity or you find a suspicious website, be wary. It could be a scam.
Cryptocurrency
Crypto scams sometimes dupe victims into believing they are trading on real platforms, but the money is actually syphoned into an account held by the scammers, who have built phoney platforms that seem identical to well-known trading sites.
If you want to learn more about Cryptocurrency, complete our short and free Cryptocurrency module.
Cryptocurrency ATMs
If someone is asking you to send them money via a Cryptocurrency ATM it’s most likely a Crypto Scam. Scammers often use these to steal your money. Once money is converted to cryptocurrency, stolen funds are difficult to recover. Government organisations or legitimate companies will never ask you to use cryptocurrency ATMs to send money.
If an organisation has requested you to make a payment via a Cryptocurrency ATM, you can report it in person at your local Police Station, over the phone via the Police Assistance Line (131 444) or online at ReportCyber www.cyber.gov.au/report-and-recover/report
Ponzi Schemes
Scammers use money from a new victim to pay out fake returns to those who may doubt or are wanting to leave the scheme to trick the victim into staying, reinvesting or to keep up appearances to new victims.
Pyramid Scheme
A pyramid scheme is both an employment and an investment scam, where you earn money by recruiting others rather than selling products. They work by encouraging you to invest money upfront and recruiting others to invest. Most participants, especially at the bottom, lose money, making these schemes illegal and unsustainable.
Visit moneysmarts website at Investor alert list - Moneysmart.gov.au
To report a scam or get further information on this type of scam, visit Scamwatch.
Moneysmart investor alert list
Moneysmart's alert list can help you know which companies, businesses, and websites (or ‘entities’) are not to be trusted. Visit Moneysmart's website at Investor alert list - Moneysmart.gov.au
To report a scam or get further information on this type of scam, visit Scamwatch.