Scams can be scary, but there are many resources you can use, and steps you can take to protect yourself. Your chances of recovering your money after a scam is minimal, hence, prevention is important. After all, it’s your hard-earned money, and you want to keep it that way by educating yourself on protective measures. Here are our four tips to help you protect yourself from scammers.
1. If it seems too good to be true, it probably is
Be aware of investment opportunities that promise quick above-market returns. Once funds are lost to scammers, the recovery process is challenging, and banks may not always to be able to retrieve your hard-earned money.
2. Invest with professionals you know and trust
If you’re interested in investing, consider using a licensed financial adviser and always engage with people or institutions that you know and trust. Scammers often use charm and empathy to deceive. Remember to treat an unsolicited offer which involves handing over money or providing access to your financial and personal details with the utmost caution and scepticism.
3. Conduct your own research and due diligence
If an opportunity comes along that you’re interested in, ensure you perform your own research on it from reputable and trusted sources. Government websites including the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investment Commission (ASIC) often have updated information on current scams.
Be wary that scammers can go to great lengths to appear legitimate, including using the name and job title of someone who works at a known institution. Hence, using credible and publicly available information is a way to cross check the validity of the person and business contacting you.
Learn more about common types of scams.
4. Don’t rely on someone else to protect you
Banks and financial institutions have advanced software systems, designed to protect against fraud and other types of unwanted interference with your bank accounts. Scammers know that one of easiest ways to get into an account is through the person who holds it. Hence, you shouldn’t assume that technology will always protect you. It’s important to treat any offers with the utmost caution and scepticism.
After all, it’s your money – and you want to keep it that way.
The article does not have regard for the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this, consider the appropriateness to your circumstances.