Investment Scams

Investment scams cost Australians $837.7m in 2025 according to the Australian Competition and Consumer Commission (ACCC). These scams often promise big returns with little effort and can be tempting when living costs feel high.

How do you avoid investment scams in Australia?

What is an investment scam?

Investment scams are one of many types of fraud in Australia. They are usually opportunities that sound too good to be true and come out of nowhere. They often appear to be promoted by celebrities, or by your social media friends, and will ask you to invest into a wealth-growth opportunity, such as cryptocurrency or gold. The ‘person’ offering them could pose as anyone, for example a finance professional, or stockbroker – and they will do anything to build credibility and trust. 
These opportunities are created with fake endorsements to persuade you to hand over money. They may even pay out some money to build more trust, and to convince you to invest more. 

Examples of investment scams

A fake investment opportunity

You see an online advertisement promising high returns from a new cryptocurrency or investment platform. The website looks professional and may include fake testimonials or made-up success stories. You’re encouraged to invest a small amount first and are shown impressive “profits” on your account. When you try to withdraw your money, you’re told to pay additional fees or taxes. The platform is fake, and your money is gone.

Someone offering investment advice

Someone contacts you unexpectedly through social media, a messaging app or a dating platform and claims to have an investment opportunity that has generated excellent returns for them. They may pressure you to act quickly or encourage you to transfer money to a particular account or platform.
In reality, the person may be part of a scam network or using a fake identity. Once you transfer your money, it may be difficult or impossible to recover.

Investment scams can take many forms, be on guard for opportunities that have come out of nowhere, and make big promises. 

How to spot an investment scam:

Look out for red flags

• Promises of low risks with high returns - if it looks too good to be true, it probably is.
• You are contacted out of the blue - receiving a call, email or message on social media from someone offering you unsolicited advice on investments.
• High-pressure tactics - repeatedly being contacted by someone telling you to act quickly and invest or you will miss out. 
• Someone you haven’t met in person offers you investment advice - never take investment advice from someone you meet on social media or a dating app.
• Use of a celebrity or high-profile person as an endorsement - these are often fake, probably generated by AI, and their name and image are used without their permission.
• You are asked to deposit funds into different accounts for each transaction - scammers may claim this is for security reasons or because they are an international company.
• The advisor who is helping you claims you don’t need an Australian Financial Services Licence.
• You are asked to promote the scheme to friends and family to earn commission.

Tips to protect yourself from investment scams

Check before you invest

Always check that a financial adviser is properly licensed or authorised to provide financial advice by searching ASIC’s registers before investing.

Check ASIC’s list of companies you should not deal with. If the company that contacted you is on the list – do not deal with them. Even if they are not on this list, it could still be a scam. The MoneySmart website also contains information about how to avoid investment scams.

Do your homework on the investment by running a company search online for any reviews, complaints or scams.

• Get professional advice.  This could be independent legal advice, or financial advice from a financial advisor registered with ASIC.
• If you're considering a cryptocurrency investment, seek advice from a qualified financial adviser or legal professional and make sure you fully understand the risks before investing.
• Do your research and don’t let anyone pressure you into an investment. Never commit to anything on the spot.
• Never take investment advice from anyone you’ve met online or provide them with personal or financial information.
• Check the legitimacy of the individual or organisation using contact details you find independently.
• Ensure the person who is trying to sell you a product or give you advice has an Australian Financial Services Licence.

How to report a scam

If you suspect that you may have fallen victim to an investment scam, it’s important to act quickly.

If you have been contacted by a scammer encouraging you to invest, or you believe that a scammer has access to your banking information, or are just concerned about your banking security, please call us as soon as possible on 13 11 82.

It’s also important to report any scams to Scamwatch after you have spoken to us.

Keeping our customers’ banking safe is a top priority, which is why we have a number of measures in place to prevent fraud and help our customers avoid scams. For more information on People First Bank's anti-fraud measures, please visit our fraud and scams hub.