Don’t Lose your Super to Scammers

Don’t be another victim – be on the lookout for scammers who call you about your superannuation!

ASIC on the lookout

The number of cold callers is on the rise. The Australian Securities and Investments Commission (ASIC) are urging people to hang up on cold callers and scroll past social media clickbait that may be offering to help you compare and switch superannuation funds.

How cold callers operate

In many cases, cold callers will convince you to buy a product or sign up for a service. This could relate to any financial investment, product or service, but there has been a focus on scammers approaching people about their superannuation.

A typical superannuation cold calling experience includes:

  • A call from someone you don’t know to see if you ‘qualify’ for a free review of your superannuation.
  • Contact from a cold caller who convinces you your existing superannuation fund is not performing.
  • A Statement of Sevice (SOA) prepared by a financial advice firm the cold caller has an existing arrangement with.
  • ‘Cookie cutter’ advice that is expensive, often unnecessary, doesn’t consider your individual needs and may leave you in a worse position.

The cold caller may benefit by getting a cut of the financial advice fees, which are deducted from your superannuation balance. In the end, you could end up paying for advice that may not even be right for you.

What to do

If you receive a call from a number you don’t know, ignore it. Otherwise, if you are contacted by a cold caller and answer the call, just hang up. Similarly, if you receive an SMS message from a number you don’t know, ignore it and do not click on any links.

If you have given personal information about your superannuation or banking details to a cold caller, immediately contact your existing superannuation fund or bank and ask them not to allow any withdrawals.

You can also block a cold caller’s number and limit the calls you receive by joining the Do Not Call register.

Avoid social media clickbait

You may also have come across posts on your social media feed that question whether your superannuation is performing or encourage you to compare your superannuation fund. If so, take care, as some businesses try to grab your attention on social media before selling you their services.

Beware of other sophisticated scammers

There are also reports that many Australians have fallen victim to sophisticated scammers who use technologies that use your bank’s legitimate phone number and texts on the same thread as genuine messages.

Often, people lose their money through no fault of their own as scammers either hack or manipulate a bank or other institution’s systems, which often involves victims inadvertently providing information, such as a passcode, to the scammer.

Be vigilant and never provide anyone with personal information, passwords or passcodes over the phone.

Beware of scammers

As the saying goes, if it sounds too good to be true, it probably is. Avoid pushy sales tactics such as cold calling or social media clickbait that rush your decision-making.

A safer way to make changes to your super

If you’re thinking about making changes to your superannuation, start by taking the FREE Money Check-Up. You’ll receive a report recommending whether or not that strategy is right for you and guiding you on the next steps.

And you can do it with the knowledge it’s safe and compliant as your accountant or financial adviser partners with moneyGPS to offer this service.

Author: Natasha Panagis, Head of Superannuation & Financial Services
Institute of Financial Professionals Australia


accountantsGPS and moneyGPS are owned by Fiduciary Financial Services (AFSL: 247344) ABN: 76 003 624 888


Like This