ASIC flags SMSF investors in scam risk
Don't become a victim of a scam, be careful because it's easily done.
The corporate regulator, ASIC, has flagged significant concerns about SMSF investors falling victim to scams, in some cases even more so than other Australian investors.
ASIC published a report yesterday that indicates a wide variety of scams, including investment and 'get rich quick' scams, continue to hit Australian investors each year.
ASIC said that many people aged over 55 are attracted to the prospect of solid investment returns in a low interest rate environment and thus are often most at risk.
Speaking to SMSF Adviser, an ASIC spokesperson said SMSF trustees in particular need to be “very aware” of the likelihood of being “taken for a ride” with scammers.
“In some ways, the threat may be even worse as there is the added pressure of needing to fund a sufficient-yielding investment strategy that can result in investor over-reach or, in this case, poor decisions caused by limited due diligence,” the spokesperson said.
“SMSF trustees need to be especially aware of this risk and their responsibility to employ the cautionary principle,” the spokesperson added.
ASIC said it received 367 reports about scams in 2015, but it believes that many scams often go unreported.
“The number of Australians contacted by scammers, and the amounts of money lost, are likely to be much larger than what is reported to us,” said ASIC’s deputy chairman Peter Kell.
The top five scams of 2015 included overseas cold-calling about investment opportunities; overseas calls offering easy credit or loans after payment of an upfront fee; sports arbitrage or gambling schemes; money transfer schemes (job opportunity or other fraud); and fake debt and invoice scams.
Written by Katarina Taurian
Tuesday, 17 May 2016
SMSFadviser.com.au
Hot Issues
- 5 strategies for successful ‘work from home’ policies
- A new crypto world is emerging - the non-fungible token
- Retirees aren’t sitting on their super: ASFA
- COVID crash: one year on
- Phishing scams that pretend to be very reputable companies - BEWARE!!
- ATO releases updated guidance on LRBA and Division 7A interaction
- Understanding the coming super balance cap changes
- A broad range of Calculators.
- ATO’s good-faith approach to crypto won’t last much longer
- Navigating the post-pandemic challenges and pathways of super for young women
- ATO Small Business Newsroom
- Cost of retirement up in December quarter
- Why benchmarking will be good for super funds
- What exactly is inflation?
- The risks in hunting for higher returns
- Frydenberg flags super freeze
- The real value of advice
- Taking a deeper dive into indexation of the transfer balance cap
- ASIC sounds warning around high-yield bond scams
- How to pass the diversification test
- Rollout of Director ID Numbers (DIN) is ahead of schedule
- The perks of staying invested
- Retirees proceeding with downsizing plans as confidence rises
- Early access boosted interest in advice
- Vaccination rates as they happen around the world
- Approaching the dawn
- Videos and other resources for our clients
- Retirement the ‘number one trigger’ for financial advice
- ‘Unfinished superannuation business’ to watch for in 2021
- Superannuation ideas for 2021
- Retirees need new super investment approach
Article archive
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
April - June 2016 archive
- Making investing a family affair
- Super and divorce: a personal finance issue
- Market Update - May 2016
- ASIC flags SMSF investors in scam risk
- Older, greyer and still working
- Working and contributing to super past 65
- The pitfalls of part-year pensions
- Replenishing SMSF memberships
- Budget will hit 15% of SMSFs
- The insidious side of low interest rates
- Market Update - April 2016
- Budget 2016-17
- Do investment principles stand test of time?
- Estate Planning - early inheritance
- US economy will bend, not break
- A detailed look at the ATO’s new LRBA guidance
- Defying life's blueprint
- ATO continuing lodgement crackdown
- Another twist on the gender savings gap
- Market Update – March 2016
- Going solo
- Use our online budgeting tools to help plan your future.
- Age Pension means-test prevents rational decision-making
- Changing times for super collectables
- Preservation Age Rule
- Why investing for retirement isn't just about super