Dynamic Business Logo
Home Button
Bookmark Button

Image credit: Hannah Wei

Australians being warned of superannuation rollover scams

The Australians Securities and Investments Commission (ASIC) is warning of scams targeting individuals with self-managed super funds (SMSFs).

Scammers have been cold calling or emailing individuals and urging them to transfer existing super funds to a new SMSF. Once convinced, the target will then transfer their superannuation to what they believe is a new fund, but is actually a bank account belonging to the scammer.

Victims are often encouraged to transfer funds with the promise of better returns – 8 per cent, 20 per cent, or more per annum.

The scammer will pretend to be a financial advisor and often use the information of a similar company – one holding an official Australian financial services licence – to provide a cover of legitimacy. These sharks are known to even create separate SMSF bank accounts with an investor’s name & information, using identification documents provided to create an SMSF under an account they own.

ALSO READ – Over $500 million scammed using “fleeceware apps” in App Store & Google Play

ASIC is urging Australians to be cautious and perform independent enquiries when contacted by anyone offering to move their funds.

“Always verify who you are dealing with before handing over ID, personal details or money,” ASIC warns.

“Investing in financial products always involves some level of risk, but it is also important to check that investment opportunities are legitimate before investing.”

Among the red flags pointed out by ASIC:

  • websites disappearing
  • websites that are copied from legitimate websites, with names lifted from the internet
  • speaking to different people who happen to have the same voice
  • changing email address or other contact details

It’s also important to do research on any company offering you promising investment opportunities. The Australian Government’s Moneysmart website has the following research checklist:

  • Publicly listed phone directories — Check whether the address and contact details are correct.

Keep up to date with Dynamic Business on LinkedInTwitterFacebook and Instagram.

What do you think?

    Be the first to comment

Add a new comment

Guillermo Troncoso

Guillermo Troncoso

Guillermo is the Editor of Dynamic Business and Manager of film &amp; television entertainment site ScreenRealm.com. Follow him on <a href="https://twitter.com/gtponders">Twitter</a>.

View all posts