How to identify an investment scam

[Dona Ferentes]

Today's AFR reports NSW police are investigating a fraud ring sending out fake high- yield prospectuses. .Because he initiated the contact, he didn't suspect a scam after providing his details on a Google comparison website, then getting the follow-up phone call from the dubious salesperson.
A British scam has been targeting customers of HSBC Australia, Pimco and Vanguard via a phishing try-on. The fraud rings have so far this year ensnared $Millions from its victims,who go into Google with those fatal words "retiree","high yield" and"compare investments".

and the fake sites

The Financial Review found fake comparison websites such as Clearvest.com.au, Compare-investments.com.au, Marketing-aus.com or Investmentcompare.com.au that were returned as the lead result on Google under certain searches.

 

[basilio]

Today's AFR reports NSW police are investigating a fraud ring sending out fake high- yield prospectuses. .Because he initiated the contact, he didn't suspect a scam after providing his details on a Google comparison website, then getting the follow-up phone call from the dubious salesperson.
A British scam has been targeting customers of HSBC Australia, Pimco and Vanguard via a phishing try-on. The fraud rings have so far this year ensnared $Millions from its victims,who go into Google with those fatal words "retiree","high yield" and"compare investments".

and the fake sites

The Financial Review found fake comparison websites such as Clearvest.com.au, Compare-investments.com.au, Marketing-aus.com or Investmentcompare.com.au that were returned as the lead re
sult on Google under certain searches.

Just read the AFR story and this is an exceptionally clever scam. Well worth a close read. In essence it seems to be an effective ID steal exercise of firstly legitimate traders and then investors which enables the scammers to extract funds at will.

These sites have exploited the powerful reach of search engines, allowing the scammers to commit identity theft on an industrial scale. Financial crime experts now fear those stolen identities will be used multiple times to establish fake banking and trading accounts around the world.

The scammers have also adopted the names and identities of real-life investment bank staff, only for the funds – in parcels as high as $200,000 – to disappear through the cryptocurrency ecosystem and be sent offshore.

.....According to recorded calls of the scam, heard by AFR Weekend, victims are passed between a number of fake employees – interspersed with various iterations of hold music and concocted regulatory warnings – before they are asked to produce a series of proofs-of-identification, such as a passport and a water bill.

Then victims are asked to deposit funds into a number of bank accounts – due to a spurious claim that financial investment legislation requires the companies to set up segregated accounts that they do not directly control.

Millions vanish into crypto world in high-yield bond scam

Small Australian investors have been duped by sophisticated criminals who exploited vulnerabilities in the country’s cryptocurrency infrastructure.

www.afr.com

.....But as the fraud ring has copies of the victim’s identification, they are able to set up trading or payment accounts in the name of the victim – all without their knowledge. When the funds are deposited through a normal BPAY transfer, the money can then be accessed immediately by the fraudsters and transferred to a safe haven, putting it beyond the reach of Australian authorities

 

[dyna]

Last Thursday's AFR has a terrifying story from the UK's Financial Times. A small hedge fund manager came soooo close to losing 10 Million Euro during a bank transfer.For months the hackers had studied the writing style of his contacts,waiting and watching,before infiltrating the transaction.At the eleventh hour,this super cautious operator had a hunch something might not be kosher and made a phone call.Luckily,the bank had been a bit busy and had delayed taking action for 24 hours! Close call.

 

[dyna]

From today's AFR. The ACCC's SCAMWATCH indicates that of the 19,000 email phishing attacks that have cost victims $900,000 so far this year, it only represents 13% of those scammed, to have actually reported it to authorities.
The paper publishes a quite convincing email (that cost one potential renter on the hacked Domain website, his rental bond of $5,600 ) Although the scammers cleverly requested the fund transfer to the currently absent landlord, in NZ (close to home right?) ,the true destination was somewhere else via Kansas or Singapore .
Separately, more fraudulent high yield bond prospectuses are once again appearing on Google. The latest only a week ago. Investors hand over their contact details, then get the spin phone calls. All with British accents, impersonating employees of legit investment banks.
Google, which made $150,000 in just one month from old mate Mr. Mawhinney's Mayfair 101 scam, has seriously slipped up in failing to completely shutdown all of these fund promotions.

 

[dyna]

ACCC's Targeting Scams latest data (for 2020) was released today . Losses are reckoned to be $851Million ,well up on the $634Million for 2019. Of all the frauds, investment scams remain the big one, worth $328Million.
Today's AFR tells the sad tale of a 53 year old injured, former builder,who just last month, lost $40,000 to a forex scam over the phone with WhatsApp. Many younger ones in the 25 to 34 age group are getting into trouble with cryptocurrency scams.If only these unfortunate people could have found this wonderful forum ,first.The true amount lost is probably well over a $Billion.Next year? Likely to be much more.Leaving your hard earned savings in a nil interest bank account is a safer bet than looking on-line for something else.More education could stop this scandalous situation right now.

 

[dyna]

PWC's research finds 85% of scam attacks involve a victim doing something they shouldn't :
Opening the wrong email.
Clicking the wrong link.
Visiting the wrong website.

Get those 3 simple things right and we, dumb-as -dirt Aussies, would not be losing at least a $ Billion of savings every single year.

 

[basilio]

PWC's research finds 85% of scam attacks involve a victim doing something they shouldn't :
Opening the wrong email.
Clicking the wrong link.
Visiting the wrong website.

Get those 3 simple things right and we, dumb-as -dirt Aussies, would not be losing at least a $ Billion of savings every single year.

That is really rough Dyna.. And I suspect quite simplistic and inaccurate.

The whole point of a successful scam is creating a story or situation that seems quite plausible and ends up persuading someone to take the next steps. Yes one needs to have ones wits about you but coming up with those comments is not useful.

To take it to extreme. If one was incarcerated in a high security cell with no access to phones or the net or in fact anyone - than there would be zero chance of being scammed.

Going one step back if you had no phone or net access then your risk of being scammed could also drop substantially.

 

[basilio]

ABC has a very detailed story on a successful scam which is certainly at the top end of credibility.

Really worth spending some time understanding how this one works becasue I'm sure many people here have been looking for a few extra percent on their savings

'I felt sick': Inside the 'sophisticated' investment scam that tricked Tony into handing over $200,000

Tony Papagiannopoulos googled some investment options. Two weeks later he was frantically trying to recover most of his life savings.

www.abc.net.au

 

[basilio]

Some ASF posters might remember the Nikola truck debacle from last year.
Long story short. Trevor Milton promised a revolutionary hydrogen powered truck that was going to revolutionise the transport industry.
He almost got away with creating a $34Billion company and getting General Motors to pony up $2Billion to be in play.

Just before pay day a company that specialized in researching questionable projects with a view to short selling the stock published an analysis of Nikola Motors that demolished Trevor Milton. Check Hindenburg Research story

The wheels fell off Nikola Motors

This video examines Trevor Miltons history and the process of deception that cost investors billions.

Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America – Hindenburg Research

hindenburgresearch.com

 

[So_Cynical]

ABC has a very detailed story on a successful scam which is certainly at the top end of credibility.

Really worth spending some time understanding how this one works becasue I'm sure many people here have been looking for a few extra percent on their savings

'I felt sick': Inside the 'sophisticated' investment scam that tricked Tony into handing over $200,000

Tony Papagiannopoulos googled some investment options. Two weeks later he was frantically trying to recover most of his life savings.

www.abc.net.au

Interesting read basilio, scamming is such a massive industry that we can only expect it to get bigger and more sophisticated.

​

 

[Rabbithop]

Excellent Joe.

Even so there will be people who
Read this and STILL get scammed!

Too right. Luckily, I came into this Forum tonight n read this scam.
I had a couple of calls last week n was busy to talk. He was going to c asll me back monday, tomorrow. My answer will be No, not signing up with that amt of dollars to pay.

 

[tech/a]

Hang up and block the number don’t even talk to them

 

[Garpal Gumnut]

One line against scammers suggested to me is as follows, but I am unsure whether it is legal or not.

Scammer : Am I speaking to Mr. Garpal Gumnut.
gg : Yes you are, how may I assist you.
Scammer : I would like to introduce you ... etc. 15% monthly return ... etc. Need to move fast... etc.
gg. : Before you go any further I have Reverse ID Version 666 on my phone and I have decided should you ever try to contact me again or share my details with anyone or indeed to relate this conversation to anyone, to deliver serious harm to you and your loved ones both in Australia and overseas. I know exactly where you are sitting and who you have called in the last 72 hours, where you live, your family and where they live and everything about you. Now go ahead please.

Does this qualify as menace using a communication device or harmless banter against a fraud?

Just asking for a colourful friend whose name I am unable to recall who I met at a boxing match here in Townsville last year.

gg

 

[UMike]

How to identify an investment scam?​

When they post flashone 30 links in 30 minutes. Does it ever hook anyone in?​

 

[qldfrog]

How to identify an investment scam?​

When they post flashone 30 links in 30 minutes. Does it ever hook anyone in?​

Scam or at least spam...

 

[Garpal Gumnut]

I fail to see why Financial Literacy is not taught to schoolchildren from Grade 1.

A recent Scam test on a scale of 1-10 was posted on the ABC. I scored 10/10 for being scam proof.

Some of the mistakes that cause citizens in Australia to lose $Billions amaze me by their transparency.

The gullibility of the uneducated average punter amazes me even more.

Why teach useless sh*te and have classes full of disruptive morons is beyond my understanding.

Spending on education is more important than spending on health.

gg

 

[basilio]

I'm just not sure how easy/simple it is to identify "investment" scams.

For example for years I was very aware of the extremely dubious agricultural projects being promoted by financial advisors. Pine Plantations, Blue Gums, stone fruit, whatever. These were theoretically honest investments but a little digging would uncover many serious problems. I'm certain many ASF posters can identify a score more.

Are these less of an investment scam because they have a veneer of legal propriety ?

Perhaps we are talking more about deception here? I noted elsewhere how exceptionally effective one of the latest deception techniques has proven. Capturing a persons mind and heart and then their wallet is an age old technique of con artists either individually or, as in the case of this scam, a carefully scripted office environment.

Pig-Butchering Scam – Stop A Scammer

stopascammer.com

 

[Belli]

I fail to see why Financial Literacy is not taught to schoolchildren from Grade 1.

A recent Scam test on a scale of 1-10 was posted on the ABC. I scored 10/10 for being scam proof.

Some of the mistakes that cause citizens in Australia to lose $Billions amaze me by their transparency.

The gullibility of the uneducated average punter amazes me even more.

Why teach useless sh*te and have classes full of disruptive morons is beyond my understanding.

Spending on education is more important than spending on health.

gg

Besides the curriculum being overloaded with all the "Why don't they teach...." requests, the major flaw in your proposals is......

How do you know those who are potentially teaching financial literacy are financial literate themselves?

 

[basilio]

I also reflect on some of the big failures of companies I was invested in. I can accept that nothing is certain, that projects might not work out and that genuine errors can be made.

But IMV that wasn't the case with Linc Energy for example. The company knew its technology was failing from an early stage and just covered it up and left an emvironmental disaster behind

 

[divs4ever]

I fail to see why Financial Literacy is not taught to schoolchildren from Grade 1.

A recent Scam test on a scale of 1-10 was posted on the ABC. I scored 10/10 for being scam proof.

Some of the mistakes that cause citizens in Australia to lose $Billions amaze me by their transparency.

The gullibility of the uneducated average punter amazes me even more.

Why teach useless sh*te and have classes full of disruptive morons is beyond my understanding.

Spending on education is more important than spending on health.

gg

maybe Grade 1. is pushing the envelope but certainly before the end of Primary school ( and maybe some lightweight economics woven into the basic maths at high school )

BTW those 'disruptive morons' are often bored out of their minds because they got it the first time ( or knew that already )

even back in my school years ( 1960's ) many teachers confused indoctrination with education ( preferring extensive repetition to showing how that stuff was useful in real life )

now we could go on a whole extra debate on who was to blame for that

education administration that put 40 plus children in a class ( and mixed up intelligence levels ) or the curriculum that straight-jacketed the course and lessons , the teachers themselves many who barely graduated Junior ( grade 10 )

but yes many important things are NOT taught in primary school that could be interwoven into basic classes like English and Maths ( and maybe Social Studies )

now an interesting topic might be how do we spend the education better ( or do we just home school the children , in this age of Zoom , You-Tube/internet )