We hate seeing good money vanish into fake investments or romance scams – together they stole over $250 million from Australians last year! It’s essential to know how to protect yourself from investment and romance scams to avoid becoming a victim.
Here are three hard truths and practical steps we share with clients every week.
1. If it promises high returns with “no risk,” it’s almost certainly a scam
Crypto schemes, “guaranteed” property funds, or offshore trading platforms offering 20–100% returns are the biggest culprits you’ll find in this area.
Remember that genuine investments carry risk and never guarantee massive gains.
Before sending a dollar, insist on an Australian Financial Services Licence number and check it on ASIC’s professional registers.
2. Romance scams (catfishing) are heartbreaking and expensive
Scammers build months or years-long online relationships, then without warning they invent some kind of emergencies where they need money.
We’ve seen clients lose hundreds of thousands of dollars because they believed they were helping a “fiancé” overseas.
Our rule: never send money to someone you’ve only met online, no matter how real it feels.
Talk to a trusted friend first— an outside perspective spots the pattern instantly.
3. Use the Scamwatch and MoneySmart tools we recommend
The ACCC’s Scamwatch and ASIC’s MoneySmart websites list thousands of known fake investment operators.
You can find it via this link or just type www.scamwatch.gov.au into your address bar.
We encourage you to search any company name there before proceeding further with investment advice from an unknown source.
Investment and romance scams prey on hope and loneliness.
Stay sceptical, verify everything, and talk to someone neutral before acting.
At CommonCents Financial Planning, we’re only a call away to reality-check any opportunity that sounds too good— or too urgent. Reach out anytime.
When it comes to your money and privacy, a healthy level of distrust and a quick call to a trusted source is better than a costly mistake.
