HSBC is warning its customers to be extra vigilant when dealing with their investments after it has seen the number of investment-based scams explode in the past year.
The bank says investment scams are still the leading type of scams, with around $135 millionreported losses so far this year.
Matt Hannan, head of fraud management at HSBC Australia, says criminals often cold call or message people with investment opportunities offering guaranteed or very high returns.
“Scammers can produce convincing marketing materials and might refer to current news to make the opportunity seem realistic. If it seems too good to be true, it probably is. If in doubt, do your research. Use well-known and reputable sources before you take action and check that they’re verified,” Mr Hannan said.
Additionally, criminals are also known to set-up spoof websites, fake social media profiles and fake companies that have similar (or the same) names as genuine investment organisations.
These are some of the other common investment scam HSBC has encountered.
Short term returns as an incentive for larger investments
Under this type of scam, criminals often provide initial short-term returns which are then used to convince victims to invest more.
Fake celebrity endorsements
Criminals sometimes impersonate famous people on social media or messaging apps to make their offer seem more real and appealing.
Cryptocurrency scams
The boom of cryptocurrencies in recent years has meant scammers are increasingly using the currency as part of fake investment opportunities. Scammers will ask you to sign up with a cryptocurrency provider with your identity documents to open a trading account or online wallet, which are then promptly stolen by the criminals.
Scams can be very hard to spot, and anyone could be targeted. If you think you’ve been the victim of a scam, or your details are compromised or you’re worried about fraud, get in touch with your bank immediately.
Have you ever any investment communication that seemed suspicious? Have you ever lost money to an investment scam? Let us know in the comments section below.
