Happy 2024-2025 Financial Year
We’ve heard about making New Year’s resolutions at the start of the calendar year. What if we made financial resolutions at the start of each new financial year – what would they look like?
DVA’s new financial year resolution for keeping veterans safe from scammers would go something like this: “We want to make it harder for scammers to target veterans and families by raising awareness to help them identify, evade and report financial scams”.
According to Scamwatch, Australians lose more money to investment scams than any other type of scam. These types of scams offer big rewards, with little or no risk.
Investment scams can be hard to spot. Scammers use convincing tactics including new technologies and pressure tactics to lure potential victims to act fast or risk missing out. Scammers want you to act quickly to better their chances of stealing your money.
If someone in Australia is trying to sell you a financial or investment product, or is giving you professional financial advice, they must have an Australian financial services license. You should check that the person trying to sell you the product has an AFS license.
Scammers are known to try to ‘sell’ shares at prices well below market value – offers like this are probably a scam. If you are told the reason for the discount is that shares are being released before initial public offering, be even more cautious: this is almost definitely a scam.
You can protect yourself and your money by taking time to stop, think, and check before you act, especially if you notice any of these:
- Fake news stories or ads online claiming a celebrity recommends a scheme to make big money.
- An online contact (a friend or romantic interest) whom you’ve never met in person starts talking to you about investing.
- Emails, websites or ads with testimonials and over-the-top promises of big returns but little or no risk.
- High pressure tactics designed to rush you to act so you don’t ‘miss out’.
- The ‘adviser’ who is helping you doesn’t have, and claims they don’t need, an Australian financial services license.
- You are asked to promote the scheme to friends and family to earn commissions.
Don’t be rushed into making a bad investment decision. If you are not sure, seek independent legal advice or financial advice from a financial advisor who is registered with ASIC (charges may apply).
For more information about investment scams visit the Government’s Moneysmart website.
If you have been scammed, we encourage you to report the scam to the National Anti-Scam Centre.
If you or a family member are the victims of a scam you might feel distressed. Open Arms – Veterans & Families Counselling offers support services for veterans and families 24 hours a day, 7 days a week. If you need support, contact Open Arms by visiting their website or by phoning 1800 011 046.
