Types of super scams and how to avoid them.
During our working years, we save and invest money in our superannuation account as a preparation for a comfortable life after retirement. Yet, nothing in this world is ever 100% safe and secured. In Australia, super assets hold over $1 trillion – which makes it a prey for the scammers who are after your hard-earned savings. How do these criminals work? Read on to find out and learn how to avoid it.
Not only your credit card and bank account, identity theft can also strike your super fund. Set up with your bank and super fund accounts so that any mails and notifications are sent right to your email, instead of the mailbox in your house, to avoid getting your information stolen. You should also ignore any shady, suspicious emails, messages and calls.
Find more tips on what to do if you become a victim of identity theft here.
Illegal early release
Unless you are in a financial hardship or other special circumstances, super is supposed to be withdrawn once you reach retirement age, not before. But there are irresponsible parties out there who will lure you into getting early access to your super savings – and the victims are usually those who need extra cash in hand urgently.
They do their dirty work by having you transfer your super savings to their self-managed super fund (SMSF), and promising that they will transfer the money to you with a little commission for them. The problem is, once you transfer your super to their SMSF, their version of “a little commission” is apparently not little at all. They will take a large amount of commission, or even steal your whole savings.
Stay away from their campaigns by never clicking any ads that promise early release. You can also check their credibility on ASIC Connect or APRA. And if you’re in need of cash loan, it is always better to apply for a short-term loan that offers low-interest rate and flexible repayment methods. Reach out to SpotMe to learn more about it.
Different from early release scams, investment fraud targets people who already own SMSF. They work by convincing you to invest your super savings to certain companies or sectors. That being said, the companies and sectors are usually illegal or even imaginary.
Investing your super sounds great on paper – you get to save for your retirement while investing to grow your money even more. But you don’t need that, really. In a way, superannuation itself is an investment. Read more about it here.
Anyone can be a target of scammers and criminals, including you. And you’re the only person who can protect yourself, by being careful of suspicious offers and not exposing your data or information recklessly. Always be careful and cautious when it comes to your super, savings, investments, and personal information. Cheers.