Self-funded retirees more likely to be victims of investment fraud
Self-funded retirees and small business owners are just some of the characteristics of investors who are most likely to become victims of investment fraud, according to a new international anti-fraud survey.
The International Organization of Securities Commissions' (IOSCO) report found in Australia victims were also most likely to include middle-aged to older people, male, individuals who have previously made investments in other companies, people who are on shareholder registers, and/or socially isolated individuals.
Similarly, in the UK 70 per cent of victims were male, and in Japan 83 per cent of individuals who a securities call centre for scams were 60 years or older.
The Australian Crime Commission (ACC) found that organised criminal groups are attracted to high levels of superannuation and retirement savings as the economy is known to have been less affected by the global financial crisis.
However, the survey found many respondents indicated that anti-fraud messaging strategy was an area that needed to be worked on.
"Because fraud is always evolving we need to evolve our messages and outreach accordingly," the US Financial Industry Regulatory Authority said.
The report noted the Australian Securities and Investments Commission (ASIC) works with the Australian Consumer and Competition Commission (ACCC) through the ScamWatch website that provides information about types of scams, how individuals can protect themselves, and how to report a scam.
"ASIC's MoneySmart website warns people, among other things, to watch out for investment offers that promise high, quick returns with ‘no risk,' or inside information and discounts for early bird investors, and reminds people that if an offer sounds too good to be true, it probably is," ASIC said in the report.
However, the ACC have noted that victims of investment frauds may be embarrassed and unwilling to report their loss leading to under-reporting, hampering authorities to prevent further fraudulent activity.
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
