Beware of Share Investment Scams
Share investment scams are on the rise, unsuspecting investors are losing millions to fraudulent schemes. These scams often appear highly convincing, making it difficult to spot the dangers until it’s too late.
At Strategem, we take this threat seriously and have implemented stringent security checks to protect our clients and their financial assets.
In this blog, we’ll explore how share investment scams operate, the warning signs to watch out for, and the steps we take at Strategem to safeguard your wealth.
How Share Investment Scams Work
Scammers often pose as legitimate financial advisors or brokers, using sophisticated tactics to convince individuals to invest in fake share opportunities. These fraudsters may provide falsified documentation, use professional language, and even set up fake websites to make their schemes appear authentic. Once they gain access to your personal details or financial accounts, they drain your assets, leaving you with nothing.
Common tactics used by scammers include:
Unsolicited phone calls or emails offering "too good to be true" investment opportunities
Pressure to make quick decisions or invest large sums of money
Fake websites, email addresses, or company names that mimic legitimate businesses
Requests for personal or financial information to “confirm your identity”
Strategem's Security Checks to Protect You
At Strategem, we prioritise the safety and security of our clients’ financial information. We follow a strict process to verify the authenticity of all communications and transactions related to share portfolios.
Here are the key security checks we implement:
1. Identity Verification:
Before proceeding with any request, we verify the identity of the caller by confirming key personal details. This includes full name, date of birth, and a unique identifier that only the client would know.
2. Share Portfolio Confirmation:
We cross-check the requested transaction with the client's existing share portfolio to ensure the investment or sale is legitimate. Any discrepancies or unusual activity are flagged for further investigation.
3. Address Confirmation:
To add an extra layer of security, we verify the client's registered address on file. This helps to ensure that any communication or transactions are authorised by the correct individual.
4. Bank Account Number Check:
All transactions, especially those involving withdrawals or transfers, require confirmation of the client's bank account details. This prevents any unauthorised access to funds.
These steps are in place to help protect you from potential scams, ensuring that all communications and transactions are safe, secure, and verified.
Warning Signs of Investment Scams
While we do everything possible to safeguard your investments, it’s also important to remain vigilant. Here are some key warning signs of a potential scam:
Unsolicited contact
If you receive a phone call or email from a financial advisor or company you’ve never interacted with, proceed with caution.Too good to be true
If the investment opportunity promises unusually high returns with little risk, it’s likely a scam.Pressure to act quickly
Scammers often use urgency to force quick decisions. Legitimate investments should never require immediate action.Unverified information
Always double-check the credentials of any person or company offering financial advice. Look for verified websites, reviews, and official ASIC registration.
How Strategem Can Help
At Strategem, we work closely with our clients to ensure they have the knowledge and tools needed to protect their wealth. If you ever receive unsolicited investment offers, or if something doesn’t seem quite right, we encourage you to reach out to us. We can verify the legitimacy of any offer and provide guidance on the best course of action.
If you're concerned about investment scams or would like to learn more about safeguarding your assets, contact our team for expert advice.
Reminder
In a world where scams are becoming increasingly sophisticated, it’s crucial to stay alert and take steps to protect your financial assets. At Strategem, we are committed to ensuring your investments are safe and secure. By implementing robust security measures and providing personalised advice, we help our clients navigate the financial landscape with confidence.
Stay vigilant, stay informed, and always consult a trusted advisor before making any financial decisions.
We are here to help
If you need further advice, please do not hesitate to contact our office on (03) 5445 4777 and one of our Accountants & Advisors are available to support you.
Contact Us
If you have any concerns about investment scams or would like to learn more about protecting your wealth, book a chat with one of our financial experts today.
