What’s happening
Investment scams don’t always start with an obvious sales pitch, they can be subtle. You might come across them in a social media group, through someone you trust, or on a convincing fake news website.
Scammers use a range of tactics to build trust and make fake investments look legitimate. Knowing the warning signs can help you protect your money and personal information.
The fake WhatsApp group
Scammers may add you to a WhatsApp group focused on a shared interest, such as fishing or sport. This helps the group feel friendly and genuine.
Once trust is built, someone claiming to be a “professor” or investment expert promotes a fake trading platform. Other group members post fake testimonials and impressive returns to build credibility and create pressure to invest.
After you deposit money, the platform may appear to show profits. However, when you try to withdraw money, you may be asked to pay additional fees or taxes, and your money is never returned.
In some cases, scammers may allow you to withdraw small amounts to encourage you to invest more. Then they’ll block access to your account and disappear with your money.
The referral from someone you trust
Investment scams can spread through friends, relatives or trusted contacts. Someone may unknowingly recommend an investment because their account appears to be earning strong returns. They may also be offered commissions for referring friends and family.
The profits they’re seeing may be false, or early investors may be paid with money from newer investors. This is known as a Ponzi scheme. Eventually, withdrawals are delayed or refused and the scheme collapses.
Fake news promoting scam investments
Scammers impersonate trusted media outlets and create fake news articles. These articles may feature false celebrity endorsements or claims that a trading platform has been reviewed and approved.
For example, scammers created a fake Reuters webpage to claim a fraudulent investment platform had passed safety checks and had an “official partnership” with Reuters. The page directed readers to create an investment account, making the scam seem legitimate.
These days, fake endorsements can be harder to spot. Instead of showing a celebrity directly promoting an investment opportunity, scammers may create a fake news story about them. They then use the story to draw attention to a fake investment opportunity.
Warning signs to look out for
- Pressure to act quickly.
- Unsolicited invitations to chat groups that lead to investments.
- Celebrity recommendations or “news articles” linking to an investment.
- Promises of high, guaranteed or unusually consistent returns.
- Requests to promote the scheme to friends and family to earn commission.
- Requests for extra fees, taxes or deposits to withdraw funds.|
Protect yourself from investment scams
STOP. Do not rush to transfer money or share personal information, especially if you feel pressured to act quickly.
CHECKthat the person offering you financial products or advice has an Australian financial services (AFS) license. Verify that the person you are dealing with works for the organisation they say they do, using contact details you find yourself.
PROTECT. If you suspect a scam, stop sending money and contact your bank or financial institution immediately. Report the scam and visit Scamwatch to find out what to do if you’ve been scammed.
28 Sep 2026 – Scam alert: Investment scams hiding in plain sight | Scamwatch
