March 2013 Newsletter

In this edition:

Welcome

Dad and Partner Pay

Investment Fraud: How can I protect myself?

Feature: Workers Compensation Insurance in NSW

Increasing the Superannuation Guarantee rate

The Australian Crime Commission Board has recently warned that organised criminal groups are targeting the savings of Australians through investment frauds. Many Australians, including experienced investors who undertake research, have lost their entire retirement savings to these investment frauds.

Who is being targeted?
While the scammers are targeting any person with money to invest, the ACC has identified a profile of common victims of these frauds:

• Victims are usually men over 50 who have previous investment experience;
• Many of the victims have been members of self-managed superannuation funds;
• Retirees or people nearing retirement are particular targets, as they have relatively large sums of money that they are looking to invest to fund their retirement

What can you do to protect yourself?
Criminals offering these frauds are using persuasive cold-calling tactics, sophisticated websites and legitimate looking brochures. Here are a number of key steps investors can take to identify such tactics and protect their investments and superannuation against fraud:

1. Hang up on Cold Calls
Many of these scams begin with the victim being cold-called. The caller will appear professional with a good knowledge of investment issues and often will drop the name of a family member or friend as a referral source to further legitimise the opportunity. The caller may offer to mail documents regarding the opportunity to their potential victim.

Potential victims can ensure these calls are legitimate by asking the caller simple questions, such as who owns the company and its address. If the caller cannot answer these questions, hang up. If the name of someone you know is used as referral source, you should check with this source.

2. Be wary of websites
Websites linked to these types of scams are just as professional as legitimate websites and are difficult to identify as fraudulent. The victim is often referred to a website and provided with a fake account login, allowing the victim to view the growing returns on their fake investment.

Investors need to be wary of websites and that the company they are discussing investing with has a valid Australian Financial Services license. This can be checked at www.moneysmart.gov.au. ASIC also has a list of companies investors should avoid on their website.

3. Seek Professional advice
Investors are urged to seek independent financial advice before making any investment.

4. Protect Your Identity
Protect your mail. It is a good idea to organise for someone to collect your mail whilst you are on holidays.

Protect your personal information by not giving out personal banking information, checking your banking and credit card statements each month and destroying all documents with personal information on them. All computers and mobile devices should have current anti-virus software on them.

5. Alert your family
Alert your family and friends to these investment frauds, especially those who have savings to invest. Any suspected investment frauds should be reported to ASIC via www.moneysmart.gov.au or 1300 300 630, or to your local police.

If you become a victim of investment fraud, support in New South Wales is available through the Fraud & Cybercrime Squad Helpdesk on 02 8835 7320.

If you would like further information or advice, visit www.moneysmart.gov.au or call 1300 300 630.