Sophisticated fraudsters targeting savvy investors
Australians have lost $113 million to sophisticated investment fraud since January 2007, and the victims have predominantly been financially literate and highly educated men.
The Australian Crime Commission report into 'Serious and Organised Investment Fraud in Australia' was published jointly with the Australian Institute of Criminology, and is based on the efforts of the multi-agency Task Force Galilee.
Task Force Galilee is comprised of 19 agencies, and is focused on combating serious and organised investment fraud aimed at Australians.
The frauds use sophisticated techniques to solicit investment in non-existent or essentially worthless securities, according to the report.
The most common victims of the frauds tend to be men aged over 50 who are highly educated and financially literate. Victims also tend to be small business owners, self-funded retirees and individuals who are socially isolated.
"Technological 'grooming' of the potential investor combined with personal contact over weeks, even months, is used to convince victims of the legitimacy of the investment," according to the report.
Most of the frauds base their operations overseas, although recent investigations have identified operations based in Australia, said the report.
The average amount transferred by victims of these types of frauds is $18,174, with a range between $9 and $1,293,390, according to the report.
"Investors are also encouraged not to become complacent. Due diligence is required even if an investor has a financial adviser because they may also be unaware of the fraud," said the report.
AUTHOR
Staff Writer
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