Scamsters target Christmas investors

Investors have been warned to be on guard against the promotion of illegal investment schemes after new figures suggested overseas scamsters had stepped up their activity in the lead up to Christmas.

The Australian Securities and Investments Commission (ASIC) issued the warning today based on new data that confirmed public complaints about unsolicited overseas phone calls or emails offering investment advice had increased every month since September, prompting fears of a push to promote illegal schemes over the Christmas period.

In a statement issued this morning, ASIC director of consumer communications Michael Dunn said the Christmas period encouraged “scams and schemes” and warned investors to be wary.

“Scams and schemes are often more active at the end of the year, when people often have extra income from bonuses, leave loading, retirement nest eggs and other similar sources. As the end of the year draws near, many people have extra money in their pockets, and, over summer, have more time to contemplate their finances,” he said.

Recent figures compiled by ASIC show Australians have lost at least $700 million through financial scams since 1998.

“In the past six years, Australians have lost at least $400 million to cold calling frauds involving unlicensed overseas organisations pretending to be stockbrokers and investment houses,” Dunn said.

“And, in the past six years, Australians have lost at least another $300 million through illegal investment schemes being offered on the grapevine inside Australia.”

In an attempt to stop the spread of the illegal schemes, the corporate watchdog has compiled a list of well-known scamsters on its website, including overseas based organisation involved in unsolicited cold-calling of Australian investors.

“None of the overseas cold callers ever has a licence,” Dunn said.

“Few, if any, of Australia’s home-grown illegal investment schemes are managed by a licensed business.”