How to spot an investment scam before it costs you

Investment scams are no longer easy to recognise. ASIC's Moneysmart warns that scammers are sophisticated and anyone can be a victim. It cites the National Anti-Scam Centre's finding that Australians lost more than $837 million to investment scams in 2025.

How they work

Most investment scams involve fake financial products offered by someone who is not who they claim to be. The product does not exist. Scammers may pretend to represent a bank or investment firm, or steal the identity of a real financial adviser or well-known public figure. Moneysmart notes they use professional-looking websites, social media, advertising and AI to appear genuine, and some build a whole online footprint of fake news articles and positive reviews.

Promises that should worry you

According to Moneysmart, scammers may promise:

• high returns with little or no risk

• guaranteed profits

• exclusive opportunities or insider tips

• early access before other investors

• a platform or strategy that supposedly beats the market

• the ability to get rich quickly.

Be wary of anyone who guarantees profits or pressures you to act fast. Legitimate investments always involve some risk.

Checks before you invest

• Only deal with a licensed Australian financial services (AFS) provider. Check they are listed on the Australian Financial Complaints Authority's financial firm directory.

• Check basic facts about what you are investing in and who with.

• Look up ASIC's investment scam alerts, including scams impersonating ASIC itself.

If something feels rushed or too good to be true, pause and check before sending money. This article is general information, not financial advice.