Australia’s
financial watchdog has issued urgent warnings about two separate but related
threats targeting the country’s $4 trillion superannuation system, as scammers
exploit both high-pressure sales tactics and fake government websites to steal
retirement savings.
ASIC Issues Super Scam
Alert as $4 Trillion System Targeted
The
Australian Securities and Investments Commission (ASIC) told consumers to be
“on red alert” for aggressive cold-calling schemes that pressure
people into switching their superannuation funds into risky investments. The
regulator simultaneously warned that scammers are creating fake ASIC websites
to harvest personal information and banking details.
Sarah
Court, ASIC’s Deputy Chairwoman, said the timing coincides with the start of
Australia’s new financial year, when many people review their retirement fund
performance. She described the problem as reaching “industrial scale”
proportions.
“When
it comes to sales calls about super switching, there are some big red flags
people should be alert to – being asked to make a quick decision is one of the
most obvious. Remember, a good deal won’t vanish overnight,” Court said.
The
cold-calling schemes don’t look like typical scams, according to ASIC. Callers
appear genuinely interested in helping consumers find better superannuation
products or locate lost retirement funds for free. They often connect potential
victims with financial advisers during calls to create legitimacy.
“The
initial salespeople can be very persuasive, often the underlying schemes are
complex or not made clear to the consumer, and it may be very difficult for
even experienced investors to spot problems. Once you start on the path it can
be hard to get off,” Court explained.
This is yet
another warning following the one
issued in March, in which ASIC allegedly contacted consumers regarding a
payment to release assets. As the regulator noted, it was a textbook example of
a recovery scam.
You may
also like: Investors
Locked Out, Directors Locked In: First Guardian Saga
Fake Websites Mirror
Official Pages
Separately,
ASIC discovered scammers creating websites that closely mimic its official
pages, including ASIC Connect and asic.gov.au. These fake sites use similar
domain names and visual designs to trick users into providing sensitive
information like passwords, contact details, and payment information.
Some
fraudulent websites display fake company search results for businesses that
don’t exist, while others include links to genuine ASIC pages to appear more
credible. The legitimate ASIC Connect websites are asicconnect.asic.gov.au and
connectonline.asic.gov.au.
The
regulator advised consumers to double-check web addresses before entering
personal information and to verify any suspicious communications by calling
ASIC directly.
Warning Signs and Red
Flags
ASIC
identified several warning signs for the superannuation switching schemes:
- High-pressure sales tactics and
cold calls - Offers for free superannuation
“health checks” and prizes through social media - Promises to find and
consolidate lost super for free - Involvement of unlicensed
people in the advice process - Limited face-to-face contact
with licensed financial advisers - Poor
product disclosure - Promises
of unrealistic returns
Court
emphasized that legitimate superannuation switching can provide benefits, but
only after careful consideration of risks and independent advice.
“Consumers
should always ask questions about salespeople’s connections to funds,
particularly in circumstances where a particular fund appears in the pitch, as
there may be a commission arrangement. If you are unsure or are feeling
pressured, just hang up,” she said.
Massive Market at Risk
Australia’s
superannuation system now holds more than $4 trillion in assets across over
600,000 self-managed super funds. The scale makes it an attractive target for
fraudsters seeking to exploit retirement savings.
ASIC
launched a consumer awareness campaign targeting the same demographics as the
pushy comparison services, building
on previous cold-calling warnings issued in 2024. The regulator emphasized
that finding lost superannuation is free through the Australian Tax Office, not
through third-party services.
For
consumers who believe they’ve been scammed, ASIC recommends immediately
blocking contact with scammers, reporting incidents to banks and financial
institutions, and contacting IDCARE for identity protection services.
Australia’s
financial watchdog has issued urgent warnings about two separate but related
threats targeting the country’s $4 trillion superannuation system, as scammers
exploit both high-pressure sales tactics and fake government websites to steal
retirement savings.
ASIC Issues Super Scam
Alert as $4 Trillion System Targeted
The
Australian Securities and Investments Commission (ASIC) told consumers to be
“on red alert” for aggressive cold-calling schemes that pressure
people into switching their superannuation funds into risky investments. The
regulator simultaneously warned that scammers are creating fake ASIC websites
to harvest personal information and banking details.
Sarah
Court, ASIC’s Deputy Chairwoman, said the timing coincides with the start of
Australia’s new financial year, when many people review their retirement fund
performance. She described the problem as reaching “industrial scale”
proportions.
“When
it comes to sales calls about super switching, there are some big red flags
people should be alert to – being asked to make a quick decision is one of the
most obvious. Remember, a good deal won’t vanish overnight,” Court said.
The
cold-calling schemes don’t look like typical scams, according to ASIC. Callers
appear genuinely interested in helping consumers find better superannuation
products or locate lost retirement funds for free. They often connect potential
victims with financial advisers during calls to create legitimacy.
“The
initial salespeople can be very persuasive, often the underlying schemes are
complex or not made clear to the consumer, and it may be very difficult for
even experienced investors to spot problems. Once you start on the path it can
be hard to get off,” Court explained.
This is yet
another warning following the one
issued in March, in which ASIC allegedly contacted consumers regarding a
payment to release assets. As the regulator noted, it was a textbook example of
a recovery scam.
You may
also like: Investors
Locked Out, Directors Locked In: First Guardian Saga
Fake Websites Mirror
Official Pages
Separately,
ASIC discovered scammers creating websites that closely mimic its official
pages, including ASIC Connect and asic.gov.au. These fake sites use similar
domain names and visual designs to trick users into providing sensitive
information like passwords, contact details, and payment information.
Some
fraudulent websites display fake company search results for businesses that
don’t exist, while others include links to genuine ASIC pages to appear more
credible. The legitimate ASIC Connect websites are asicconnect.asic.gov.au and
connectonline.asic.gov.au.
The
regulator advised consumers to double-check web addresses before entering
personal information and to verify any suspicious communications by calling
ASIC directly.
Warning Signs and Red
Flags
ASIC
identified several warning signs for the superannuation switching schemes:
- High-pressure sales tactics and
cold calls - Offers for free superannuation
“health checks” and prizes through social media - Promises to find and
consolidate lost super for free - Involvement of unlicensed
people in the advice process - Limited face-to-face contact
with licensed financial advisers - Poor
product disclosure - Promises
of unrealistic returns
Court
emphasized that legitimate superannuation switching can provide benefits, but
only after careful consideration of risks and independent advice.
“Consumers
should always ask questions about salespeople’s connections to funds,
particularly in circumstances where a particular fund appears in the pitch, as
there may be a commission arrangement. If you are unsure or are feeling
pressured, just hang up,” she said.
Massive Market at Risk
Australia’s
superannuation system now holds more than $4 trillion in assets across over
600,000 self-managed super funds. The scale makes it an attractive target for
fraudsters seeking to exploit retirement savings.
ASIC
launched a consumer awareness campaign targeting the same demographics as the
pushy comparison services, building
on previous cold-calling warnings issued in 2024. The regulator emphasized
that finding lost superannuation is free through the Australian Tax Office, not
through third-party services.
For
consumers who believe they’ve been scammed, ASIC recommends immediately
blocking contact with scammers, reporting incidents to banks and financial
institutions, and contacting IDCARE for identity protection services.
This post is originally published on FINANCEMAGNATES.
