You may have asked yourself these Crucial Questions When Setting Up a SMSF or any other types of investment, but have you thought about what to do once you successfully set up one? While you’ve been busy securing your home and family, there have been major developments in the world of finance that could victimise those who aren’t careful. From investment accounts like SMSFs to cryptocurrency investments – it’s important for everyone with money invested already so they don’t get caught off guard by new schemes from criminals.
Fraudulent investment schemes come in all shapes and sizes, but they all have one thing in common: they offer unrealistic returns with little or no risk. Be especially wary of any investment that promises guaranteed returns or claims to be low-risk/high-reward – if it sounds too good to be true, it probably is.
As people become more and more savvy about securing their finances, criminals are coming up with new ways to target unsuspecting victims. One of the latest scams involves targeting people who have invested in self-managed superannuation funds (SMSFs). Criminals will contact SMSF owners and offer to help them invest their money in high-yield investments, such as cryptocurrency or foreign property. However, these scams often result in the victim losing all their money, as the criminal disappears with the funds.
Here are just a few of the scams that have been making the rounds lately according to ASIC:
- You receive an offer out of the blue
- A romantic partner you only know online asks for money in crypto
- You get pressured into transferring crypto from your current exchange to another website
- You’re asked to pay for a financial service with crypto
- The app you’re using or directed to isn’t listed on the Google Play Store or Apple Store
- You need to pay more to access your money
- You are ‘guaranteed’ returns, or free money
- Strange tokens appear in your digital wallet
- The provider withholds investment earnings ‘for tax purposes’
Not sure if it’s a scam or not?
If someone attempts to scam you, there are several things you can do:
- Do not provide any personal information that will allow a scammer to impersonate and retrieve your funds.
- Do not click on links you have received via text or email that have a substantial number of letters and numbers.
- If you have lost money to a scam, contact your financial institution immediately.
- Do not provide any personal information that will allow a scammer to impersonate and retrieve your funds.
- Do not click on links you have received via text or email that have a substantial number of letters and numbers.
- If you have lost money to a scam, contact your financial institution immediately.
- Consider contacting the organisation the suspected scammer claims to work for – the organisation may be able to confirm your suspicions.
- Most importantly, if you think you’ve been targeted by someone who is trying to access your super, report it to:
ASIC — online complaint form
ATO — https://www.ato.gov.au/
How to avoid being scammed?
It’s always a good idea to verify the identity of anyone who asks for your personal or financial information over the phone. If the call is unexpected, better still hang up and call the business directly.
To ensure that you are not being scammed, check whether the licensed professional is listed on ASIC’s Professional Registers.
You can contact the Australian Tax Office directly (13 40 20) if you are unsure about any superannuation-related information that has come into your possession and wish for it to be verified.
The URL you have been directed to is not reliable and could be suspicious. There are discrepancies at the end of this one, so take note before following any links.
If you receive an email that seems suspicious, do not click on any links in the body of the message, and delete it immediately.
Protect your SMSF from hackers
Hackers have become all too common and it’s important for you to ensure that you protect your SMSF account from them. Here are some tips to keep your account secure:
- Update your passwords regularly
- Keep your passwords somewhere that is difficult to find or access by anyone
- Use strong and secure passwords that are hard to crack
- Consider setting up two-factor authentication to secure your account details
CONCLUSION
The Optus data breach has shone a light on the increasing number of sophisticated financial scams happening regularly. These crimes can be very professional and convincing, even for experienced investors – so it’s important to discuss the risks involved. If you’re ever unsure about an offer or investment, be sure to do your research first. By being informed and taking precautions, you can help protect yourself and others from these scams.
Aside from these 3 Excellent Reasons to Hire an Accountant for your business, the most successful people in life are good at keeping themselves out of trouble. They know that hiring an accountant is not just about taxes and bookkeeping; it’s also crucial for making sure you’re maximising each dollar earned so your path toward success will be clear from the beginning.
Wardle Partners Accountants & Advisors is here to help if you need any clarification or advice when it comes to verifying legitimate professionals. We want everyone to be safe and secure in their finances, get in touch now and let our SMSF Experts help you.
