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Alarm bells raised on latest investment scam

By Emma Ryan 14 April 2020 | 1 minute read

Australians are urged to be vigilant against a new investment scam circulating in the Western Australian community.

investment scam

Consumer Protection (WA) has warned residents to be on high alert for unsolicited SMS or social media messages urging them to inject money into a fraudulent scheme disguised as an investment opportunity.

The warning comes after Consumer Protection became aware of the scam that claims almost $22 million can be unlocked from an international account if the recipient pays part of the $500,000 required in fees and taxes to release the money.

Commissioner for Consumer Protection Penny Lipscombe said the scammer seemed to be targeting those living in regional WA.

“This scam contains an attachment claiming to be a certificate from the Arab Monetary Fund authorising the funds to be transferred,” Ms Lipscombe said.

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“Our investigations reveal that while this is a legitimate organisation, it doesn’t actually perform this kind of function.

“You should always be suspicious if you receive unsolicited calls or messages offering opportunities for investment.

“If someone’s telling you about a way to make easy, fast money and putting significant pressure on you to invest big with the promise of high returns, ask yourself, ‘Is it too good to be true?’ and discuss the offer with someone you trust.”

How to ensure you’re not being scammed, as per Consumer Protection (WA):

1. Carry out thorough research before investing money and get independent financial advice from a licensed financial adviser.

2. If provided with documentation, always verify it with the legitimate entities.

3. Visit Australian Securities and Investments Commission’s MoneySmart website for financial advice and for a list of companies you shouldn’t deal with.

4. To see if someone you’re dealing with has an Australian Financial Services Licence, check ASIC’s professional registers. 

 

About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]Read more

Alarm bells raised on latest investment scam
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