Your super: A scammer’s new target

In a recent media release, the Australian Securities and Investments Commission (ASIC) warned about a new scam doing the rounds.

Scammers attempt, through cold calls to superannuation savers, to extract personal and super fund details by offering incentives in the form of gift cards, competitions or mobile phones.

Some induce victims to create an account on their ‘comparison website’ to legitimise themselves and their advice.

Rosie’s story

When you get those phone calls in the evening, you know, around dinner time, you’re immediately suspicious. But Steve rang mid-morning saying he represented a well-known investment firm.

He said that his area of expertise was superannuation, and that it would only take a moment for him to explain what he could do for me. He then guided me through the steps for creating an account on his website.

Naturally, I was cautious, but Steve reassured me it was just a comparison site, and I wasn’t signing up to anything.

He showed me how to compare my super fund’s returns with others, and the website seemed so legit that I felt a bit silly for initially having doubts. I listened to what he had to say, and it all made sense.

Gerry’s story

The first I knew about all this was when Rosie called asking me to transfer her super into an alternative fund.

A bit of background; Rosie has been a client since we first set up a retirement plan and savings strategy for her, twenty-odd years ago. As her lifestyle changed over time, we reviewed and tweaked her portfolio, and she was on track for a comfortable, self-funded retirement.

Rosie is an intelligent woman. She may not be a superannuation expert – that’s my job – but we’ve had some quite detailed conversations about her retirement and savings portfolios. So when she asked me to facilitate her roll-over to this other fund, well, to say I was concerned was an understatement.

Scammers pose as financial planners or investment managers. Traditionally, they have targeted individuals searching online using words like, ‘safe’, ‘superannuation or ‘long-term’.

Recently, they’ve gone to the next level and begun cold calling.

Rosie

When I phoned Gerry, he seemed reluctant to organise my roll-over. He asked me for the details of the fund I was rolling into and said he’d get back to me.

I thought he was just a bit miffed that I was talking to someone else.

Gerry

Alarm bells were going off in my head. I asked Rosie to sit tight for a day while I researched the fund.

I contacted the company this Steve fellow claimed to represent and asked them a few questions.

Of course, neither Steve nor the fund existed.

Then I checked whether the fund had a USI (unique superannuation identifier). Nothing for that either.

I rang Rosie.

Rosie

I was shocked, I mean, Steve sounded so genuine – and the website! Wow. What a close call!

Gerry told me to report the scam to Scamwatch. They contacted me and said this kind of thing was increasingly common and recommended I join the ‘Do-not-call register’.

Lesson learned. I’ve had a great working relationship with Gerry for years, there’s a reason for that!

I’m due for my annual review next month – Coffee’s on me!

If you suspect a scammer has called you, ASIC recommends you:

• hang up immediately,
• contact your superannuation fund and bank and block withdrawals,
• join the Do-not-call register.

Above all, never accept financial advice from someone you don’t know, if in doubt, speak to your financial adviser – seriously, if the fund is legitimate, they’ll know about it!

Sources

https://www.donotcall.gov.au/, Do not call register, Australian Communications and Media Authority, Australian Government (accessed 1 May 2024).

https://www.scamwatch.gov.au/, Scamwatch, National Anti-Scam Centre, Australian Government (accessed 1 May 2024).