ACCC: Beware high risk, no reward investment scams

The Australian Competition and Consumer Commission (ACCC) stated that it is warning the community to watch out for investment scammers who promise the world but leave their victims with broken dreams and empty bank accounts.

"In the first half of 2017, Australians have reported losing over $13 million to investment scams to the ACCC's Scamwatch website, making it the most profitable of all the current scams. It is likely that losses are much higher as many victims do not report scams or contact other authorities," ACCC Deputy Chair Delia Rickard said.

Men are almost twice as likely to be targeted by investment scams and lose significantly more money than women. People aged 45 to 64 most commonly fall victim.

"These scams typically start with a phone call out of the blue. The scammers are sophisticated, convincing and persistent, which is why we sadly see people lose large amounts of money to them. They are also delivered through unsolicited emails, online forums and social media," Ms Rickard said.

"Scammers use high pressure tactics to sell you a financial opportunity that is 'not to be missed', involves high and quick returns for low risks, and needs to be acted on quickly or you will miss out," she said.

"Whatever your motive is for the investments you make, do your research and never invest money with someone who has contacted you out of the blue, no matter who they say they are, how much money they promise you or the urgency with which they're trying to make you act. They seem too good to be true because they are," Ms Rickard said.

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