Despite growing public awareness, investment scams increased by 34% in 2019 over the previous year. More than $61 million dollars was lost via clever investment scams, with male victims accounting for $44.7 million of that figure.*

Scams take many forms but when it comes to superannuation, two stand out:

1. fraudulent investment schemes, and
2. schemes offering early access to superannuation.

Either way, the result can be a major financial loss and dreams destroyed.

Golden opportunity

One clear warning of a scam is an unsolicited approach from the perpetrator to the intended victim. Someone (the perpetrator), contacts you, usually by phone or email, offering an investment that is ‘both safe and delivering high returns’. This person will often know a lot about you, citing accurate personal details they claim you provided in a questionnaire you completed earlier. Their story is supported by an apparently authentic website and, enticed by the attractive returns and smooth sales talk, you make an initial investment. At the beginning you receive statements showing your investment is growing steadily prompting you to add further funds. Then things go silent. Their phone number is disconnected, emails bounce and the website disappears, along with any hope of recovering your funds. Your stomach lurches. A cold sweat saturates you. You’ve been scammed.

Wonderful as modern technology is, it makes it easier for fraudsters to appear legitimate and transfer money in an instant. They close down one operation and set up another with ease. It doesn’t help that we give away so much of our personal information, and what isn’t available for free can often be purchased by criminals.

Early access

The other major scam that lures many who need money quickly is the promise of early access to superannuation. This is how it works.

Bob’s superannuation is just sitting there, the solution to his financial problems if only he could access it.

He searches the internet for options and an advertisement promising early access to super pops up. This puts Bob in touch with a ‘specialist’ who helps him set up a SMSF, telling him that as the fund trustee he will be able to get hold of his super money. Bob signs the paperwork to set up the fund and rollover his super, but the money doesn’t turn up where it should. Eventually Bob discovers that his retirement savings were transferred to a bank account controlled by the scammer who then moved overseas.

Not only has he lost the lot, Bob now faces a big tax bill for accessing his super prematurely.^

The scammers didn’t tell him that early access to super (or some of his super) is only available:

• on compassionate grounds,
• in cases of incapacity (as defined by the super fund),
• to pay for medical treatment if seriously ill,
• in cases of severe financial hardship where you can’t meet immediate living expenses, or
• if terminally ill.

Protection is the best cure

While TelstraSuper has a range of security measures in place to help protect your money, there’s also a few things you can do to help keep your super safe such as:

• Choosing a secure password and updating it regularly
• Not accessing your online super account on public computers like internet cafes or libraries
• Hanging up on unsolicited phone calls and deleting suspicious emails
• Securing your postal mail and keeping an eye out for missing mail
• Keeping your computer and phone software up to date
• Reviewing your super statement and reporting any suspicious transactions or activity to us
• Seeking advice from a licensed adviser. Legitimate advisers and investment managers appear on ASIC’s list of Australian Financial Service Licence holders.

If you notice unusual transactions on your account, please contact us immediately on 1300 033 166.

For more information on identity crime, including how to protect your identity and where to go for help if you think your identity has been compromised, visit ASIC’s Money smart Identity Theft page.

What you can do if you’ve been scammed

If you think you could have been involved in a financial or investment scam you should report it to ASIC right away.

If you have sent money or information to a scammer, contact your bank immediately. They may be able to stop a money transfer or close your account if the scammer has your account details. You should also contact the business the scam is pretending to represent.

ASIC’s MoneySmart website has more information on what to do if you think you’ve been involved in a superannuation scam.

Not sure if it’s from us?

TelstraSuper uses a range of ways to communicate with members including email, text message, direct mail and outbound calling. If you’re unsure if a communication you’re receiving is genuine you can contact us on 1300 033 166 between 8.30am and 5.30pm Monday – Friday (Melbourne time). If in doubt, don’t click – call us instead.

This presentation contains factual information and general advice only. It has been prepared without taking into account your objectives, financial situation and needs. You should consider whether it is appropriate having regard to your personal circumstances before making any financial decisions.

If you are considering acquiring a financial product you should obtain the relevant product disclosure statement before making any decision.

*https://www.accc.gov.au/system/files/1657RPT_Targeting%20scams%202019_FA.pdf

^https://www.moneysmart.gov.au/scams/superannuation-scams

This presentation contains factual information and general advice only. It has been prepared without taking into account your objectives, financial situation and needs. You should consider whether it is appropriate having regard to your personal circumstances before making any financial decisions.  If you are considering acquiring a financial product you should obtain the relevant product disclosure statement before making any decision.