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 is on the lookout

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

How do 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 advice (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, contact your existing superannuation fund or bank immediately and ask them to not 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 have also come across some 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 they try to sell 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 text on the same thread as genuine messages. Often, people are losing their money through no fault of their own as scammers either hack or manipulate a bank or other institution’s systems, which will often see victims inadvertently providing information, such as a passcode, to the scammer. Be vigilant, and never provide personal information, passwords, or passcodes to anyone 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. Suppose you’re thinking about making changes to your superannuation. In that case, you can always start by researching, contacting your existing superannuation fund, and considering using a licensed financial adviser to obtain quality financial advice about your superannuation.