How to spot an investment scam and stay one step ahead of them

As the old saying goes, ‘If something seems too good to be true, it probably is’ – and that’s especially true when it comes to investment scams.

Investment scams are the most financially damaging scams in Australia, according to Scamwatch, with Australians losing more than $172 million to investment scams in 2025 alone.*

And as technology improves and AI becomes more commonplace and harder to differentiate from reality, knowing the signs is one of the simplest ways to protect your money.

What is an investment scam?  

An investment scam looks like an investment opportunity – but it isn’t. It promises returns that, by design, never arrive.

Some investment scams are simple. They take your money, then disappear. 

Others are more intricate. They take your money, allowing you to recoup some of your investment, luring you into a false sense of security, then, when you try to withdraw a larger sum, that’s when they disappear or request more money to get your returns.

What type of investment scams are most common?

Investment scams can appear in a variety of ways. The most common types of investment scams are either where the investment opportunity itself is fake, or, where the investment is real, but the individual acting as the broker or financial adviser, is not who they say they are. 

From fake financial advisers offering you a deal of a lifetime, to exciting opportunities in the world of crypto currency, or even AI deepfake celebrities promoting things that the person whose image has been stolen has no connection to. 

Most investment scams rely on familiar psychology – urgency, authority and the appeal of ‘exclusive’ opportunities – regardless of whether the product is real or fake.

While anyone can be scammed, it’s important to remember that anyone can learn how to better protect themselves too, and the best way to do this is by understanding what investment scams are, so you know what to look out for. 

What are common investment scam tactics?

A sense of urgency 
“Act now!” “Hurry!” “Don’t miss out!”  
Scammers will often imply a sense of urgency in an attempt to get you to act quickly. They do this because they know that the quicker you act, the less time there is for you to realise something isn’t right. 

An offer of guaranteed returns  
In life, there are no guarantees. If you see an investment opportunity that promises definite returns or a low-risk investment with consistent, high returns, consider if it is a red flag.

Applying pressure to act  
Similar to a sense of urgency, scammers will often put pressure on you to act. They do this so you can make a decision before you’ve had a chance to think things through or get advice. But it’s important to consider, if the investment is genuinely so good and an opportunity not to be missed, then would they really need to push you so hard to invest in it?

Implying trust through impersonation  
Another common tactic scammers use is impersonation. They pretend to be someone they’re not, to imply authority and gain your trust. 

Whether they’re posing as an organisation, a financial adviser, a celebrity or even a friend or family member, they’re hoping this sense of familiarity lowers your guard, so you part with your money more easily. 

When in doubt, check through a channel you trust – not the one the message came from.

Unlicensed or unregistered individuals/firms

Reputable investment professionals and firms must be licensed and registered with relevant financial authorities. Always verify their credentials and check if they have a disciplinary history. If they are not properly registered or claim they don't need to be, steer clear.

How do you stay safe if you’ve received an investment opportunity you’re not sure about?

Whether you suspect the message is a scam or not, the safest thing to do is stop, check, and seek support before you act. 

Ask yourself, does the opportunity seem too good to be true? Is the email or person pushy, are they trying to get you to act quickly? If it’s coming from a person or an organisation, before you click anything, look online to see if you can find out more about them, either through their official website or a channel you trust. 

How did that Hemsworth brother get your personal email, and does it make sense that he’d be emailing you to tell you about crypto? 

After all this, if you’re still not sure, get a second opinion. Ask a friend, family member or someone you trust what they think. 

Remember, you’re not expected to be a cyber expert – and you don’t need to be. Just by taking time and asking questions you are using smart financial behaviour. 

Where can I go to get scam help?

If you suspect a scam or something goes wrong, don’t try to handle it alone. The Australian Cyber Security Centre and Scamwatch have dedicated resources on investment scams. You can also call your bank and your business insurance provider if you’re worried about a breach.

If you believe your AMP bank account or superannuation has been compromised, alert us immediately. 

AMP Bank customers can call 13 30 30. 

AMP Bank GO customers can message us 24/7 in the app. 

AMP Super members  can call 13 12 67