A Cold Call Investment Fraud (CCIF) strategy launched nationally in Queensland this morning aims to specifically target and disrupt CCIF operations, advising that if it looks like a scam and quacks like a scam, then it is a scam. #CCIF #itsascam #justhangup

Locally, Tasmania Police wish to advise that there has been a significant increase in the number of investment scams being reported.

There are several different contact methods for these scams and include emails, pop-ups whilst browsing the internet, letters or by telephone.

The scams involve share, securities, mortgage or real estate high return schemes, options trading, foreign currency trading or early access to your superannuation. These scams are the typical ‘get rich quick schemes’ and can also include the sale of software to predict outcomes such as sports betting.

The scammers make money by keeping the funds you have invested or provided, or by boosting the price of stock in a company they already have shares in, they sell their shares and make a huge profit and leave you with a loss.

These type of scams are usually very sophisticated and have even fooled some financial advisors in the past. They offer glossy brochures, web pages and even seminars. They look and sound legitimate.

You may even begin trading and see high returns or added bonus payments, but when you attempt to withdraw any of those funds, they are not forthcoming.

The majority of these scammers are based overseas, however, there have been some schemes operating in Australia. These are called ‘boiler room’ scams. These usually involve a person receiving a ‘cold call’ from a sales person. The sales person is usually in a virtual office and a rapport is built and techniques used to induce an investment. Once the money is obtained the company closes down and the money is gone. They are called ‘boiler room’ scams due to the high pressure placed on the investor. Earlier this year, Gold Coast police charged several persons with fraud charges and suspect the company made $59million in the past six years.

A 77 year old male from Hobart was recently scammed $250,000. He invested with a binary options broker from overseas, whose company Binarybook was eventually liquidated.

Advice:

• Always be extremely cautious of investing.
• The old adage applies – if it sounds too good to be true, it probably is.
• Ensure you use a local entity that has an Australian Financial Services (AFS) licence. These licences are regulated by the Australian Securities Investment Commission (ASIC).
• ASIC also keep a list of companies you should not do business with.
• If you are having time pressure placed upon you, you can guarantee it is highly likely to be a scam.
• Thoroughly research the entity you are dealing with, the sales person, company directors, company, website, the type of investment and how to protect yourself against scamming.
• If a salesperson says there are guaranteed returns avoid the company.
• Marketed higher returns means you need to be more suspicious and it means high risk.
• Always see an independent financial advisor about the investment you are about to make.
• Always discuss the investment with family before committing.