Scammers take $113m from Australians

Investment fraudsters have swindled more than $113 million from 2600 Australians in the past five years, a new report shows.
THE Australian Crime Commission (ACC) report says scammers are increasingly targeting educated retirees by using personal details taken from competition and promotional forms, and 'cold-calling' victims to convince them to buy non-existent or worthless shares and securities.

Home Affairs and Justice Minister Jason Clare said while the five-year, $113 million figure was alarming, the real toll was likely to be much higher as many victims were often too embarrassed to go to authorities.

"People's entire life savings are stolen by criminals with the click of a mouse," Mr Clare told reporters in Melbourne on Monday.

"This type of crime destroys wealth and destroys lives. It's also very difficult to stop."

Launching the Serious and Organised Investment Fraud in Australia report, Mr Clare said the criminal syndicates usually operate from outside Australia using false names and front companies.

Once they've stolen their victims' money, they then shut down their websites to avoid being traced, he said.

ACC chief executive John Lawler said criminal syndicates go to great lengths to make their operations look legitimate, such as using realistic, professional-looking websites, manipulating search engine results to make their fake brands positive, and using country-specific scripts for cold calls.

Typical victims of investment fraud are well-educated men aged over 50 with high financial literacy, who generally manage their own superannuation, Mr Clare said.

Australian Securities and Investments Commission chairman Greg Medcraft said dodgy investments were incredibly sophisticated and tough for even experienced investors to spot.

"Perpetrators of this type of fraud are skilled at using high-pressure sales tactics, over the phone and using emails, to persuade their victims to part with their money," he said.

In the biggest public awareness campaign of its kind, the ACC and Australia Post will send letters to every Australian household over the next two months to warn them of the dangers of investment fraud.

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