Investment scams are on the rise...

Why Staying Alert to Scams Is More Important Than Ever

ASIC has issued a fresh warning about a growing wave of investment scams using images of well-known Australian personalities to lure unsuspecting victims.

So far in 2025, ASIC has shut down more than 330 investment scam websites — a 25% increase compared to the same period last year.

“These scammers are exploiting the concept of ‘social proof’ by misusing images of trusted public figures to promote fraudulent investment schemes,” ASIC said in a press release. “These sites trick consumers into believing they can earn big returns, using unauthorised celebrity endorsements to add credibility,” added ASIC Commissioner Alan Kirkland.

The High Cost of Scams

In 2024, Australians lost a staggering $945 million to investment scams, according to the National Anti-Scam Centre — a stark reminder of just how advanced and destructive these scams have become.

ASIC warns that the rise of artificial intelligence is making scam operations faster, more convincing, and more widespread. In the past six months alone, the regulator has identified several new scam tactics, including:

  • Fraudulent news articles promoting fake investment opportunities

  • Fake trading platforms designed to mimic legitimate services

  • Cloned websites with polished, professional designs

  • AI-powered “trading bots” that promise unrealistic or guaranteed returns

Common Scam Warning Signs…

According to ScamWatch, here are some red flags to look out for:

  • “Too good to be true” returns – High, guaranteed profits rarely exist in real investing.

  • Unfamiliar requests for money or help – Scammers often exploit your kindness.

  • Unexpected links or attachments – Never click or download unless you’re sure it's safe.

  • Pressure to act fast – Scammers want to stop you from thinking things through.

  • Unusual payment methods – Requests for payment via gift cards, crypto, or prepaid debit cards are red flags.

  • Instructions to create new accounts or PayIDs – Be cautious if you're asked to set these up to transfer funds.

Use the ‘Stop, Check, Protect’ Approach

ASIC recommends the following steps when confronted with a suspicious investment pitch:

  1. Stop – Consider whether the opportunity could be a scam.

  2. Check – Verify the legitimacy of the website, news source, and financial service provider. Use ASIC’s Moneysmart Investor Alert List.

  3. Protect – Report anything suspicious promptly to help protect others.

For more information, visit the Australian Government’s ScamWatch website.

Rick Maggi CFP, Financial Advisor Perth, Westmount Financial