It’s not just your inbox that’s under attack these days—your superannuation could be too! The Australian Taxation Office (ATO) has raised the alarm on a sneaky rise in scams targeting Self-Managed Super Funds (SMSFs). Scammers are getting craftier, and have their sights set on your hard-earned retirement savings, so if you’re a trustee, vigilance is more important than ever.
The Scam
Here’s the gist: scammers are pretending to be financial advisers, promising the world with fake “high-performing” SMSF investments. It often starts with a phone call or an email—maybe even a few—and soon they’re asking for personal details like your bank information or SMSF details. They might sound convincing, act like they’re in the know, and even throw in official-sounding financial jargon to build your trust.
But here’s the kicker: once they have your details, they’re not setting you up for retirement riches. Instead, they’ll drain your super and disappear faster than you can say “retirement dream.”
How To Identify an SMSF Scam
The scammers usually follow a pattern:
- Fake Financial Adviser Routine: Scammers will pose as financial advisers or SMSF experts, encouraging you to roll over your super into what they claim is a high-performing SMSF investment.
- Impersonating Real Companies: To make their scam seem more legit, they might steal the name and Australian Financial Services Licence (AFSL) of a genuine business. Some even go the extra mile, setting up professional-looking websites to fool you into thinking it’s the real deal.
- Pressure Tactics: Be on alert if someone is hounding you for personal details. They might say they need your super account info or other financial details, claiming it’s for a “quick comparison” or some “special offer.” They may try and contact you multiple times, and sometimes, persistence can feel like authenticity—but don’t fall for it!
- Isolation: These scammers don’t want you seeking second opinions. They’ll likely discourage you from contacting the ATO, ASIC, or any licensed professionals, knowing that they’ll be exposed as frauds. That’s a huge red flag—legit advisers will always encourage you to do your due diligence.
What Happens If Scammers Succeed?
If they do manage to get your details, it’s game over. Your funds will be transferred into their personal accounts, they’ll disappear into the abyss, and your retirement nest egg is gone for good.
It’s not just a financial hit—it’s a massive emotional blow, too.
How to Protect Yourself from Super Scammers
Scammers are evolving, but so can you. Here’s how to keep yourself, and your SMSF, safe from elaborate scams:
- Always Verify Who You’re Dealing With: Before handing over any personal or financial details, make sure you’re talking to a licensed professional. ASIC has a professional register that lists all licensed financial advisers. Check it out before taking any financial advice from someone who claims to be an expert. If they’re legit, they’ll be listed there.
- Be Wary of Unsolicited Offers: If you didn’t ask for advice or an investment opportunity, be cautious. Scammers often cold-call or email people out of the blue. Don’t let them pressure you into making a decision or providing personal details—and make sure you do your research.
- Never Give Out Personal Information to Strangers: Whether it’s over the phone, via email, or through a website, don’t share your SMSF details, bank accounts, or passwords with anyone unless you’ve verified their identity.
- Check for AFSL: Ask for the adviser’s Australian Financial Services Licence (AFSL) and cross-check it on ASIC’s register. If they balk at this or try to change the subject, that’s a huge warning sign!
- Beware of Fancy Websites: A slick website doesn’t mean it’s legitimate. Scammers are getting really good at making their operations look real online. Don’t be fooled—always verify with the proper authorities. Another way to confirm if a website is secure is by looking for the ‘S’ in the url (e.g. https://www.biscosgrove.com.au)
- Engage with Trusted Sources: If you’re unsure about any correspondence or offers related to your SMSF, don’t hesitate to reach out to the ATO directly on 13 10 20. They can confirm if the communication is genuine or not. Likewise, if something feels off, consult with your financial adviser or SMSF professional.
The ATO is cracking down on these scammers, but they need you to stay vigilant, too. They urge SMSF trustees to be extra careful when handling their super investments. Once the money is gone, it can be extremely difficult—if not impossible—to recover it.
If you do receive any suspicious communication regarding your super, report it immediately.
What To Do If You Suspect a Scam
Think you might be dealing with a scammer? Here’s what you should do:
- Stop Communicating: Immediately cut off all contact with the suspected scammer. Don’t give them any more information.
- Contact the ATO: Give them a call at 13 10 20 to report the suspicious activity and seek advice on what steps to take next.
- ASIC’s Register: Double-check the credentials of anyone you’re dealing with on the ASIC professional register. If their name or business isn’t listed, you’re likely dealing with a fraud.
- Report the Scam: Head over to the MoneySmart website for more tips on spotting scams and instructions on how to report one.
Scammers are always going to be around, looking for the next big score, and unfortunately, SMSFs are a prime target. But with a little vigilance and by following the tips above, you can outsmart these crooks and keep your retirement savings safe.
No legitimate financial adviser will ever rush you into a decision or ask for personal details in a dodgy way. Stay cautious, stay informed, and don’t be afraid to question anything that doesn’t feel right.
Have questions or need help securing your SMSF? Get in touch with us, and we’ll help you navigate the world of SMSFs without falling victim to these crafty scammers.
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The material and contents provided in this publication are general and informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
