Investment scams: fake platforms, fake ads and long cons

An investment scam is a fake opportunity to grow your money. It might look like a slick trading app, a cryptocurrency scheme, a “low-risk” bond from what seems to be a well-known bank, or a tip from someone you’ve been chatting with online. Scamwatch says scammers promise returns that are “too good to miss”, often with “little or no risk”, and that they impersonate legitimate investment and finance companies.

These scams can be convincing because the scammer controls everything you see: the website, the dashboard showing your “profits”, the paperwork and the friendly account manager. This guide explains how they’re put together, what the warning signs look like, and how official sources describe checking a business before money changes hands. It is general education, not financial advice.

How it works

Investment scams come in many forms, but most move through the same stages.

1. The hook. The first contact is designed to reach lots of people cheaply. Common hooks include social media ads or fake news stories featuring a famous person, a “comparison” website for term deposits or bonds, an unexpected call, or a new friend or romantic match who eventually mentions investing.
2. Collecting details. An enquiry form or sign-up page captures your name, phone number and email. Moneysmart says fake comparison sites collect these details, and sometimes ask for identity documents to “verify” you, which can be used for identity theft (see how identity theft works).
3. The friendly expert. An “account manager” or “adviser” calls, sounds knowledgeable, and walks you through opening an account. They may send polished documents and use the name, logo or licence number of a real firm.
4. The small win. You deposit a small amount, and a dashboard shows it growing. Scamwatch says scammers fake growth data and may let you make small withdrawals to build trust.
5. The push. Pressure builds to invest more: a “bonus window”, a market opportunity, or a warning that your account will be frozen unless you top it up. Scamwatch describes high-pressure tactics so you don’t “miss out”.
6. The wall. When you try to withdraw a larger amount, Scamwatch says scammers “come up with reasons not to pay you”. This is often a “tax”, “release fee” or “verification” charge.
7. The disappearance, and the second scam. Contact stops and the platform may vanish. Scamwatch warns that people offering to recover lost money are usually running another scam. See money recovery scams.

Common types Scamwatch and Moneysmart describe

• Fake trading platforms and apps that show made-up data.
• Cryptocurrency schemes. Scamwatch notes crypto is hard to trace and is “a very high risk and volatile investment”.
• Fake celebrity endorsements, often using AI deepfakes that Scamwatch says are “very hard to recognise as fake”. See deepfake and voice-cloning scams.
• Imposter bonds and term deposits. Moneysmart says scammers “pose as financial companies and offer fake ‘low-risk’ investments, like bonds or fixed term deposits”, targeting people looking for safe options.
• Fake comparison websites that give “little or no detail about the companies” they claim to compare. In a May 2024 scam alert, ASIC warned that people who had given their contact details to a comparison website may receive calls from scammers impersonating financial services businesses.
• Romance baiting, where an online relationship leads to an investment pitch. See romance scams.
• Other forms Scamwatch lists include Ponzi schemes, fake share-listing (IPO) offers and offers of early access to superannuation.

A fictional example

This example is fictional. Names and the website are invented.

Priya is scrolling social media when she sees what looks like a TV news segment. A well-known presenter seems to describe an “automated trading” service at tradewise-gains.example that “ordinary Australians” are using to earn extra income. The video looks real, and the comments underneath are full of people thanking the service.

She fills in a short form. Within an hour, a man named “Marcus” calls. He’s warm and patient, explains that the platform uses software to trade automatically, and helps her open an account. He emails a welcome pack with a company logo and an AFS licence number.

Priya deposits $250. Over two weeks her dashboard shows it rising to almost $900, and she successfully withdraws $100, which arrives in her bank account. That convinces her. Marcus then mentions a “premium tier” with higher returns, available only until Friday. She transfers $15,000.

A month later, her balance shows $41,000. When she asks to withdraw, Marcus says a 20% “capital gains clearance fee” must be paid first. Priya feels uneasy and searches the licence number on ASIC’s Professional Registers. It belongs to a real firm, but the firm’s listed website is different, and tradewise-gains.example isn’t mentioned. She calls the real firm on the number from its listed website. It has never heard of Marcus.

What gave it away: a celebrity “endorsement” in an ad, contact straight after a web form, a small withdrawal that built trust, a deadline, a fee to release money, and a licence number that didn’t match the website.

Warning signs of an investment scam

• An ad, video or “news story” showing a famous person promoting an investment.
• Promises of high returns with little or no risk, or “guaranteed” returns. Moneysmart says to be wary of these.
• Pressure to decide quickly, or a bonus that’s about to expire.
• Someone you’ve met online, but never in person, starting to talk about investing. Scamwatch lists this sign.
• An “adviser” who says they don’t need an AFS licence. Scamwatch calls this a major red flag.
• A fee, tax or charge to release your own money.
• Being asked to recruit friends and family for commission.
• A new-looking website for a company that claims to be long established. Scamwatch treats this as a warning sign.
• For bonds and term deposits, Moneysmart lists payment account names that don’t match the licensed provider, being asked to pay more than one account, and contact details that differ slightly from the real firm’s. It also says: “If it includes a government logo, it’s probably a scam.”

For red flags that apply to any kind of contact, see the quick scam red-flag checklist.

How to check if it’s real

These checks are based on Moneysmart’s “Check before you invest” page, ASIC’s guidance on using its resources, and Scamwatch’s investment scams page (checked October 2026). They describe what ASIC and Moneysmart say to look for rather than exact button names. The registers can change their layout, so the ASIC and Moneysmart pages have the latest steps.

Look the business up on ASIC’s Professional Registers

1. Go to ASIC’s Professional Registers through Moneysmart’s or ASIC’s website (not a link in the offer).
2. Search by the business name, ABN, ACN or licence number you were given.
3. Check that the details match exactly: name, licence number, address and contact details. Moneysmart warns scammers may claim a licence they don’t hold or use another firm’s number.
4. Check the licence conditions. ASIC describes checking that the licence covers the financial services being offered, and whether it allows services to retail and/or wholesale clients.
5. Check the websites listed. ASIC says the register shows a licensee’s principal website and any extra sites it has supplied. ASIC says to exercise caution if a website claiming to belong to a licensee isn’t listed, while noting some licensees haven’t yet supplied these details.

Moneysmart also points to the Financial Advisers Register for checking an individual adviser, and notes that a licence isn’t an ASIC endorsement or a guarantee of safety.

Search the Investor Alert List

Moneysmart’s Investor Alert List names companies, businesses and websites that may be unlicensed or impersonating a real firm. Search it for the business and website name. Moneysmart is clear about its limits: “If you can’t find a name on the list, it doesn’t mean you can trust it.” Scamwatch also points to the IOSCO international alerts portal.

Check the company behind it

• ASIC’s company register shows whether a company is registered, its status, and how long it has used its current name. ASIC also mentions checking directors and its banned and disqualified registers.
• ABN Lookup (abr.business.gov.au) lets you search by ABN, ACN or name, and shows whether an ABN is active or cancelled and whether the business is registered for GST. ASIC notes it also shows how long a business has had its ABN.
• Website age. Scamwatch suggests using ICANN’s lookup tool to check when a domain was registered. ICANN describes its tool as showing “the date a domain name was registered”. A site created weeks ago for a firm claiming decades of history is a red flag. Our online shopping guide explains how to check a domain’s registration details, including for .au addresses.

Contact the real firm yourself

Moneysmart says not to use the links, numbers or licence details supplied in the offer. For bonds and term deposits, it points to AFCA’s “Find a financial firm” directory for genuine contact details. Call the firm and ask whether the person who contacted you works there.

Make sure the investment makes sense

Moneysmart describes being able to explain how the investment makes money and where the returns come from. Scamwatch suggests getting independent advice from a financial adviser registered with ASIC.

Common questions

How can I tell if an investment is a scam?

Scamwatch says scammers promise returns that are “too good to miss”, often with “little or no risk”. Other warning signs official sources list include a famous person promoting the investment in an ad, pressure to decide quickly, an online contact who starts talking about investing, an “adviser” who says they don’t need an AFS licence, and a fee to release your own money. See Warning signs of an investment scam.

How do I check if an investment company is legit in Australia?

No single check can confirm an offer is genuine. Moneysmart describes checking the business on ASIC’s Professional Registers, searching its Investor Alert List and contacting the firm using details you find yourself, not those in the offer. Moneysmart also says that if a name isn’t on the Investor Alert List, “it doesn’t mean you can trust it”. The steps are under How to check if it’s real.

Why can’t I withdraw my money from a trading platform?

Scamwatch says that when people try to withdraw larger amounts from a fake platform, scammers “come up with reasons not to pay you”, often a “tax”, “release fee” or “verification” charge. Scamwatch’s steps start with contacting your bank or card provider and stopping any further payments, including fees to release funds. See How it works and If it’s already happened.

I was able to withdraw some money. Does that mean it’s real?

No. Scamwatch says scammers fake growth data and may let people make small withdrawals to build trust before larger amounts are blocked. In the fictional example, a small withdrawal arrives in the bank account just before a much larger deposit is requested. The checks on ASIC’s registers apply whatever the platform has paid out so far.

If the licence number is on ASIC’s register, is the investment safe?

Not on its own. Moneysmart warns scammers may claim a licence they don’t hold or use another firm’s number. ASIC describes checking that the name, address, contact details and listed websites match the register entry, and that the licence covers the services offered. Moneysmart notes a licence isn’t an ASIC endorsement or a guarantee of safety. See Look the business up on ASIC’s Professional Registers.

What do I do if I’ve lost money in an investment scam?

Scamwatch’s first step is to contact your bank or card provider immediately and stop sending money, including any “fees” to release funds. It points to IDCARE on 1800 595 160, reporting to Scamwatch, and, for crypto scams, a police report through ReportCyber. Scamwatch also says offers to get your money back are “usually just another scam”. See If it’s already happened and money recovery scams.

If it’s already happened

Scamwatch’s steps (checked October 2026):

1. Act fast. Contact your bank or card provider immediately to report the scam and ask them to stop transactions. Stop sending money, including any “fees” to release funds.
2. Get help to recover. Contact IDCARE on 1800 595 160 for free help, especially if identity documents were shared. If you’re unhappy with your bank’s response, you can complain to AFCA.
3. Report and warn others. Report to Scamwatch. Scamwatch’s investment page says to report crypto scams to police through ReportCyber.
4. Watch for follow-up scams. Be wary of anyone offering to help get your money back.
5. Get support. Scamwatch lists free financial counsellors for scam-related debt, and Lifeline (13 11 14) and Beyond Blue (1300 22 4636) for emotional support.

Scamwatch’s investment page also mentions changing your passwords and cutting all contact with the scammer. See how to secure your online accounts for how passphrases and multi-factor authentication work.

Where to report

• Scamwatch takes scam reports at scamwatch.gov.au.
• ReportCyber at cyber.gov.au takes police reports of cybercrime.
• Moneysmart has pages for reporting investment scams and unlicensed businesses.

See where to report scams and cybercrime in Australia and first steps after a scam.