Site icon YourLifeChoices

Where there’s money, there are scammers

Bank interest rates have fallen through the floor, super is struggling to deliver positive returns on our investments and many people are turning to the stock market in the hope of adding to their nest eggs.

And where there is an upturn in activity, there is usually a quick response from scammers.

Thousands of Australians are joining online communities dedicated to sharing the latest news, analysis and opinions about listed companies. But the Australian Securities Exchange (ASX) is warning that information posted by unverified accounts and users may not be trustworthy.

It says Australians need to be extra cautious and may be basing investment decisions on false or misleading information.

“If you come across an article that appears to be fake or misleading, check for announcements by the company on ASX’s market announcement platform or contact the company directly,” an ASX spokesman said.

Business Insider reports that there has been a surge in images posted to Facebook of newspaper articles with manipulated headlines and content, “allegedly in an effort to game the market”. A member of the Facebook group ASX Small Cap & Micro Cap Investors confirmed he had seen fake information posted to another group.

“Pretty creative,” he wrote. “But def not on.”

Business Insider explains that there are dozens of Facebook groups aimed at ASX investors, many with tens of thousands of members. The groups are filled with questions for other members, news articles about the latest developments and memes.

Many groups stipulate that members should not provide financial advice, but that is regularly ignored. The groups can be set up and joined by anyone, so there is little oversight as to what is posted on them.

An ASX spokesman confirmed it was aware of examples of fake or misleading information circulating online.

Its job, he said, is to ensure that investors have access to correct information to make informed choices.

“We constantly monitor companies’ price and volume movement, liaise with listed companies, grant trading pauses and halts to help them manage their disclosure obligations, and encourage them to respond factually and proportionally via the market,” the spokesman said.

He said the ASX monitored any sudden shifts in company prices and contacted companies to investigate if that occurred. Ultimately, it had no powers to penalise an individual or organisation, although “we may assist ASIC with any regulatory investigation as required”.

Moneysmart offers guidance on how to spot an investment scam.

It says there are three main types of investment scams:

 

It says scams can be very difficult to spot and can feel legitimate in the moment. A scammer may tell you they are offering:

 

The investment offer may be a scam if the person:

 

If you spot any of these signs, says MoneySmart, hang up the phone or delete the email. If you manage to record any of the scammer’s details, report them to the Australian Securities and Investments Commission (ASIC).

Have you taken a new or renewed interest in the stock market? Have you spotted anything that made you suspicious?

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Related articles:
https://www.yourlifechoices.com.au/finance/news/the-curious-case-of-the-missing-billions
https://www.yourlifechoices.com.au/finance/news/which-generation-has-it-worse
https://www.yourlifechoices.com.au/health/covid19/covid-making-us-financially-smarter

Exit mobile version