The global financial crisis has left people more vulnerable to fraud. It has also left people worried about their savings lasting throughout their retirement, with low investment and superannuation returns.
Scam organisers generally target retirees or people nearing retirement age who have large amounts to invest. These people are often members of SMSFs.
Here are a few tips you can use to protect yourself and your loved ones against fraud:
1) Be cautious when using websites:
The websites these scams are on can be just as professional as a bank or superannuation fund website, and can make the “opportunity” seem legitimate.
2) Hang up on someone cold calling you:
Cold callers often call potential victims promising to send them material about their “opportunity”. If they cannot answer some simple questions about the company they work for, such as the address of the company or the name of the person who owns the company, hang up immediately.
3) Do your own research:
You should always do your own research on a company before you deal with them. Make sure the company has an AFSL number, as that means they are registered with ASIC. If they do not have an AFSL number, you should report them to ASIC..
4) Seek another professional’s advice:
Before you enter into any arrangement regarding investment or borrowing money, you should seek another professional’s advice.
5) Keep your identity safe:
Never give out your personal, credit card or banking information. Any emails you receive that are unsolicited should be deleted and you should install anti-virus software on your mobile phone and computer.
6) Be wary of mail, door to door or shopping mall promotions:
If an offer seems too good to be true, it probably is. These include offers than promise to access your superannuation early. You should never commit to something on the spot or provide your personal and financial information.
Make sure elderly members of your family are also aware of the tips listed above so they can protect themselves and ensure they have a trusted financial adviser.