Losses due to investment scams in Australia jump 205% in one week

Maria Nikolova

Australia’s Scamwatch advises the public to beware of get-rich-quick schemes, as investment losses top $1.6 million in the week to June 23, 2019.

Losses due to investments scams in Australia marked a 205% jump last week, according to Scamwatch, the body operated by the Australian Competition and Consumer Commission (ACCC). The data show that Australians reported having lost over $1.6 million due to investment fraud in the June 17 – June 23, 2019 period.

Scamwatch advises the public to be wary of get-rich-quick schemes.

Let’s recall that, as per recent Scamwatch reports, Australians lost $18.57 million during the first five months of 2019. In May, the losses due to investment fraud were close to those reported in April 2019. Whereas in April they stood at $4.17m, in May the losses are at $4.24 million.

Australians submitted 1,956 reports about investment scams in the January-May 2019 period. The most active in submitting reports about fraudulent investment schemes were those between 25 to 44 years of age. Australians over 65 years of age reported the biggest losses.

In 2018, Australians filed a total of 3,508 reports about investment scams and reported losses of $38.85 million. This compares to more than $31 million reported lost to investment scams in 2017. Last year, July was the month with the biggest amount of losses ($6 million).

The large majority of investment scams are still focused on traditional investment markets like stocks, real estate or commodities. For example, scammers cold call victims claiming to be a stock broker or investment portfolio manager and offer a ‘hot tip’ or inside information on a stock or asset that is supposedly about to go up significantly in value. They will claim what they are offering is low-risk and will provide quick and high returns.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading


DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.