Cold-calling scam lynched in scammer network
A cold-calling investment scam operating under the name ‘Global Capital Wealth' appears to be associated with a network of fraudulent financial services businesses, the Australian Securities and Investment Commission (ASIC) said.
ASIC has warned consumers of a scam that sees fraudsters offer them opportunities to invest in a managed share trading scheme.
The scammers appeared to be using the Australian business number, Australian company number, and Australian financial services license number of ‘Global Capital Resources', a licensed financial services business with no affiliation to Global Capital Wealth, according to ASIC.
The regulator's investigation indicated the business was associated with a group of fraudulent financial services businesses which ASIC had obtained orders against last October in the Supreme Court of Queensland.
The companies operating the scams were predominantly based in the Gold Coast but targeted consumers all over the country, ASIC said, luring potential victims with the promise of high returns as reported on their fictitious web site.
ASIC said victims of the scam often lost everything.
ASIC Commissioner Greg Tanzer said consumers needed to be wary of unsolicited investment advice and products.
"Consumers can be tempted by the promise of high returns or other incentives; however they should remember that reputable financial services businesses do not cold call members of the public," he said.
"If you receive such a call, hang up immediately and save yourself significant potential losses."
The fraudulent businesses web sites have already been blocked, ASIC said.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
