On the Internet it seems you can\u2019t click anywhere without someone trying to rip you off. Here\u2019s the most common scams you\u2019re likely to hit, and how to avoid them.<\/p>\n\n\n\n
The Internet can be a wonderful place to explore, no matter your passions in life. You could make the same observations about stepping outside your front door, and just as in the real world, while there\u2019s a lot of genuinely fantastic things to do and see, it\u2019s wise to be wary and careful.<\/p>\n\n\n\n
Not everyone has your best interests at heart, and the online world in some ways makes this easier than the real world. An online scammer doesn\u2019t have to be in your physical presence \u2013 or even in the same city or country \u2013 to strike.<\/p>\n\n\n\n
Online scams are a serious problem in Australia, with the ACCC\u2019s Scamwatch reporting some 239,247 instances costing Australians $568, 654,974 in 2022<\/a>.<\/p>\n\n\n\n If you think that number is large, bear in mind that the true figure is almost certainly bigger, because that\u2019s just for the scams where people have reported to Scamwatch.<\/p>\n\n\n\n So, what are the big current scams, and how can you avoid them?<\/p>\n\n\n\n The one investment secret the banks don\u2019t want you to know about (which is also a scam)<\/em><\/p>\n\n\n\n The number one scam that hits Australians by far are investment scams. In 2022, it\u2019s estimated that fake get-rich-quick schemes cost Australians over $377 million dollars.<\/p>\n\n\n\n To give that some perspective, romance scams, the second-most common reported scam type cost Aussies $40 million. Neither figure is good, but far more people are losing money chasing money than they are chasing love.<\/p>\n\n\n\n They\u2019ve been especially prevalent of late trading in the hype around crypto currencies, with promises of amazing returns for small investment stakes.<\/p>\n\n\n\n All investments involve a level of risk, but investment scammers will try to lure you in with promises of \u201ccan\u2019t fail\u201d investments, or amazing returns in very short spans of time, pressuring you to invest \u201cbefore it\u2019s too late\u201d.<\/p>\n\n\n\n Many investment scammers offer sophisticated looking sites and systems that may appear to show your money growing exponentially and may mimic real world financial and cryptocurrency exchanges to demonstrate how \u201cwell\u201d you\u2019re doing. Or in some cases, they may employ a little reverse psychology, showing you making (moderate) losses with an easy way to trade your way out of a deficit by depositing just a little more money.<\/p>\n\n\n\n When you come to cash out you may be hit with excuses as to why that can\u2019t happen, sometimes wrapped in complex financial jargon. Your money is long gone in any case.<\/p>\n\n\n\n This is a difficult area, because investment and finance products are complex by their nature, and very few of us have the experience to properly judge the real-world risks involved even in legitimate financial products.<\/p>\n\n\n\n That\u2019s why it\u2019s a good idea before laying money down on any investment to seek independent financial advice.<\/p>\n\n\n\n I\u2019m not a financial advisor, but if I wanted to give financial advice in Australia I\u2019d need to be registered with ASIC<\/a> to do so.<\/p>\n\n\n\n Likewise, legitimate financial investments have to comply with a range of Australian financial laws and regulations, including having an Australian Financial Services (AFS) licence.<\/a><\/p>\n\n\n\n If an investment comes your way, ask a few questions and definitely ask about their AFS licence. The Australian Government\u2019s Moneysmart website<\/a> has an excellent rundown of the complex steps that are wise to take to avoid falling victim to a financial services scam.<\/p>\n\n\n\nScam 1: Investment scams<\/h2>\n\n\n\n
How to protect yourself from investment scams<\/strong>:<\/h2>\n\n\n\n