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How do financial scams and identity theft in Australia work, and how can beginners protect themselves?

By FastBuySale Newsroom · 9 Nov 2026 · 1m ago

How investment scams work

Moneysmart says investment scams generally involve fake financial services and products offered by someone who is not who they claim to be. With an investment scam, the product does not exist, and the seller most likely is not who they say they are.

Scammers may pretend to represent a bank, investment company or financial services business, or steal the identity of a genuine financial adviser or a well-known public figure. They may create professional websites, brochures and advertisements to make the offer look legitimate, but once you invest, your money disappears.

Moneysmart lists imposter bond investment scams and crypto scams as examples of fake investment products, and warns that any type of financial product can be falsified and marketed to investors. Its scams hub also covers banking and credit scams such as phishing, Ponzi schemes that promise higher than average returns, and superannuation scams where someone offers to help you get your super early.

Technology is making scams harder to spot. Moneysmart reports that in the 2025/26 financial year ASIC removed more than 19,400 online scams, up 182% on the previous year, including fake websites, social media ads, phishing scams and cryptocurrency investment scams.

Some scams build a whole online footprint: fake advertisements, fake reviews, fake comparison websites, fake investment platforms, fake news articles, fake celebrity endorsements and deepfake videos. A victim may be taken from an ad on a well-known platform to a fake news article with fabricated public comments. Once they hand over details, scammers follow up with scripted phone calls, fake platforms and even small profit payments to build trust.

Worked example: imagine an ad promises a 'safe' bond paying well above normal rates, links to a polished comparison site, and a caller then shows you a dashboard with a small early profit. Every one of those elements matches a warning pattern Moneysmart describes. The small profit is a trust-building tactic, not proof the investment is real.

Moneysmart notes that getting money back is particularly difficult because many of these scams involve overseas criminal networks, and scammers often move money quickly between accounts or convert it to cryptocurrency to make it harder to trace.

Warning signs to watch for

Moneysmart says investment scammers often sell the dream of easy money. They may promise high returns with little or no risk, guaranteed profits, exclusive opportunities, insider information or stock tips, early access before other investors, a platform or strategy that supposedly beats the market, or the ability to get rich quickly.

Be wary of anyone who guarantees profits or pressures you to invest quickly. Moneysmart stresses that legitimate investments always involve some level of risk.

Scammers can reach you through phone calls, emails and texts, social media and online forums, online ads in search engines and news sites, fake review and comparison sites, dating apps where they build trust first, and fake news articles and celebrity videos. A professional website, positive reviews or a social media ad does not mean an investment is genuine.

For identity theft, Moneysmart says you may not notice straight away. Signs include unusual bills or charges on your bank statement, important mail going missing, unexpected mail such as a new bank card or share transfer letter, calls or texts about products you do not use, unusual emails, and a sudden increase in suspicious calls, texts or social media messages.

Moneysmart also flags that reports of stolen shares due to identity theft are on the rise, with shares transferred or sold without the owner knowing.

A realistic sense of returns helps you spot an offer that is too good to be true. The https://fastbuysale.com/tools/compound-interest-calculator/ shows how ordinary growth builds over time, and the https://fastbuysale.com/tools/inflation-calculator/ shows what a return means after rising prices. For more on legitimate options, see https://fastbuysale.com/news/au/high-yield-savings-accounts-in-australia-rules-and-key-terms-to-know.

What to do if your identity is stolen

Contact your financial institution: get in touch with your bank, stockbroker and super fund and ask them to block your account. Moneysmart says this can stop a bad actor accessing your money or investments, and you may also need to cancel any credit or debit cards attached to the account.

Contact IDCARE: Moneysmart describes IDCARE as Australia and New Zealand's national identity and cyber support service, which can help you make a free plan to limit the damage. Call 1800 595 160 or visit the IDCARE website.

Change your passwords straight away, and check all your online accounts, including banking, shopping, email and social media. Check whether your email accounts have been compromised, then change those passwords too.

Report the fraud: if someone used your personal information, you can report it to the police via ReportCyber. If someone hacked your online accounts, such as social media, digital wallets or shopping sites, report it to those organisations.

Alert family and friends if someone controls your social media or email, and ask them to block the account.

Government services: if someone has accessed identity documents with your Centrelink Customer Reference Number, Medicare or myGov details, contact the Services Australia Scams and Identity Theft help desk on 1800 941 126, Monday to Friday, 8am to 5pm AEST.

Shares: if someone asks to transfer your shares, contact your broker, who can try to stop the transfer. If you hold shares with a share registry (your account has a Securityholder Reference Number), contact the registry directly so it can warn brokers you may be a victim of share sale fraud.

Report it to Scamwatch: Moneysmart says Scamwatch, run by the National Anti-Scam Centre, collects scam data from across Australia, uses it to warn others, and shares intelligence with government, law enforcement and the private sector. Report all scams, including investment scams, to Scamwatch.

A prevention checklist

Use strong passwords: long passwords with a mix of numbers, symbols and upper- and lower-case letters. Moneysmart points to the Australian Cyber Security Centre for tips on passwords and passphrases.

Turn on multi-factor authentication, which adds a second check, such as a code from a text message or app, when you log in.

Shred letters from your bank, super fund and employer before throwing them out, and lock your mailbox so people cannot steal your mail.

Use public computers with caution: clear your browser history and log out when you finish. Think about what you share on social media, especially public profiles, because bad actors can learn where you live, work and visit.

Use security software, which can block some malware and warn you about unsafe websites. If your broker offers a Trading PIN or Trading Password, turn it on and use it for every trade.

Monitor your bank transactions often and contact your bank about any charge you do not recognise. Request a copy of your credit report to look for debts, loans or applications you do not recognise; if you suspect fraud, you can request a temporary ban. Our guide https://fastbuysale.com/news/au/credit-scores-in-australia-faq-for-first-timers explains credit reports in more detail.

Do not click links in text messages and be careful with links in emails. Go to your financial institution's website or app yourself, and check that email addresses match those on the organisation's official website.

Before investing, Moneysmart says to always use a licensed Australian financial services (AFS) provider and check it is listed on AFCA's financial firm directory. Review your share portfolio regularly through your broker's secure app or the share registry. If you are building savings safely instead, see https://fastbuysale.com/news/au/net-worth-tracking-in-australia-how-it-works-explained-for-beginners.

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