Investment scams, finfluencers and getting real advice

Good information can help you grow your money. Bad information, or a scam dressed up as an opportunity, can wipe out years of saving. Here’s how to tell the difference.

How big is the scam problem?

Australians reported losing about $2.18 billion to scams in 2025. Investment scams were the most costly type, with reported losses of $837.7 million.

Scammers are skilled and well organised. Smart, careful people get caught every day. Knowing the warning signs is your best protection.

Warning signs of an investment scam

Be very wary if someone:

• promises high returns with little or no risk
• contacts you out of the blue, by phone, social media, dating app or message
• pressures you to act fast (“only three spots left”)
• asks you to pay in crypto, gift cards or by transfer to a personal account
• shows you a slick website or app where your “balance” grows quickly
• asks you to pay a fee or tax before you can withdraw your money
• uses fake celebrity endorsements or news stories

Finfluencers: handle with care

Finfluencers are people who share money and investing content online. Some are helpful. Others are paid to promote products, don’t understand the risks, or are breaking the law.

In Australia, anyone who gives financial product advice generally needs an Australian financial services (AFS) licence or must be authorised by a licensee. ASIC has warned that social media algorithms reward clicks and engagement, not accuracy. Unlicensed advice can lead to jail time or large fines for the person giving it.

Before acting on a tip you saw online, ask yourself:

• Is this person licensed or authorised? You can check on ASIC’s professional registers.
• Are they being paid to promote this?
• Does it sound too easy?
• Does it suit my situation, or is it just popular?

You can report suspected unlicensed finfluencers to ASIC on 1300 300 630.

General advice vs personal advice

These two terms matter, because they tell you how much the advice has been tailored to you.

General advice can be useful, but it isn’t about you. Personal advice must consider your objectives, financial situation and needs.

Check your adviser on the register

Advisers who give personal advice on investments, super or life insurance must be listed on ASIC’s Financial Advisers Register. If someone isn’t on it, they can’t legally give you that kind of advice.

The register shows:

• who the adviser works for and has worked for
• their qualifications and training
• the types of products they can advise on
• any bans, disqualifications or other disciplinary action

Search it on Moneysmart: https://moneysmart.gov.au/financial-advice/financial-advisers-register

What advice costs

Personal advice can be expensive, because a good plan takes time. Fees might include:

• a fee to prepare your Statement of Advice
• a fee to set up the recommended products
• an ongoing fee for reviews and support
• an hourly rate for one-off questions

If you agree to ongoing fees, you must give written consent each year before they can keep being charged. Advisers can’t take commissions on super or investments, but they can be paid commissions on insurance, with your consent.

Where to get free help

• Scamwatch (https://www.scamwatch.gov.au): learn about scams and report them. If you’ve sent money, contact your bank straight away.
• ASIC on 1300 300 630: report unlicensed advice or misconduct.
• Financial Information Service on 132 300: free, independent financial education from Services Australia (not personal advice).
• AFCA on 1800 931 678: free complaints service if you have a dispute with a licensed adviser or financial firm.