Scammers have found yet another 'sophisticated' way relieve Australians of their money.
Losses to imposter bond investment scams have nearly tripled in the first half of this year with consumers losing more than $20 million, prompting a warning from the Australian Competition and Consumer Commission.
Imposter bond scams usually impersonate real financial companies or banks and claim to offer government/Treasury bonds or fixed term deposits.
People often fall victim to these scams after searching online for investment opportunities and completing enquiry forms via fake third-party comparison sites.
"These comparison sites can appear very convincing, and people are providing their details under the impression that these are legitimate Australian sites comparing real financial services," ACCC deputy chairwoman Delia Rickard said.
The latest Scamwatch data reveals there were 228 reports of imposter bond scams between January and June, compared with 82 reports in the first half of last year.
Losses suffered by Australian victims of imposter bond scams increased by 265 per cent in the first half of the year, compared to the same period last year. However, the true losses to these scams are likely to be much higher, as research shows that only around 13 per cent of scam victims report their losses to Scamwatch.
"We are seeing an alarming increase in imposter bond scams, so we are urging Australians to be very cautious when presented with investment opportunities," said Ms Rickard.
Victims of this type of scam are convinced they are making a long-term, legitimate investment. They are directed to transfer funds into a bank account, which are sometimes based in Australia. It's common for victims to deposit larger sums upfront and not check their account for months before realising they were scammed.
More than half of those who reported losses to imposter bond scams were first contacted by phone, accounting for $11 million in losses.
We are seeing an alarming increase in imposter bond scams, so we are urging Australians to be very cautious when presented with investment opportunities. .
- ACCC deputy chairwoman Delia Rickard.
"It's critical to independently verify the financial institution or bank issuing the bonds by calling the bank or financial service directly, using details you have sourced yourself - rather than using any phone numbers or links provided. If you seem to have been dealing with someone from the institution ask to speak to them," Ms Rickard said.
"Always have an accredited financial or legal advisor check any potential investment opportunity before you send any money or provide your credit card details and only ever invest as much as you can afford to lose."
"Bonds can be purchased via the ASX. If you are thinking about doing this, follow ASIC's safety advice."
It's critical to independently verify the financial institution or bank issuing the bonds by calling the bank or financial service directly, using details you have sourced yourself - rather than using any phone numbers or links provided. If you seem to have been dealing with someone from the institution ask to speak to them.
- Delai Rickard
"Investment opportunities that promise a high return with little to no risk are likely to be a scam."
The ACCC said organisations that are aware they are regularly targeted by scammers impersonating them, have an important role to play in the prevention of scams by monitoring and seeking the removalof websites impersonating their brand.
More information about scams can be found in the ACCC's latest Targeting Scams report.
The ACCC also shares scam reports with the financial sector through the Australian Financial Crimes Exchange, with ASIC and with platforms such as Facebook.
Telephone numbers used by scammers to contact victims are also shared with telecommunications providers for potential blocking under the Reducing Scam Calls Code.
If you have reason to believe you have been scammed, contact your bank or financial institution as soon as possible as they may be able to find where the money went, block scam accounts and help others to avoid sending money to scammers.
If you have given away personal information, as most victims have, then also contact IDCARE(link is external) as soon as possible.
Before investing Australian investors can make these simple practical checks:
- check ASIC's Offer Notice Board to see if a prospectus relates to a recent offer registered
- check ASIC's register of Australian financial services licensees to make sure any party promoting or issuing the financial product is licensed or is authorised by a licensee
- check ASIC's Moneysmart list companies you should not deal with
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