Common investing traps (Australia)

Plain-English basics for people in Australia. This explains how things work and where to check the official rules. It never picks a product for you.

Traps that cost people the most

• Promised returns. No honest person can promise what markets will do.
• Chasing what just went up. A big recent rise says little about next year and often comes with bigger falls.
• All eggs in one basket. One share, one coin, one property, one scheme.
• High fees you never see. Ask for every fee in money.
• Borrowing or leverage to invest. Losses grow faster than gains feel.
• Selling in a panic after a fall, then buying back higher.
• Trading frequently with savings meant for the long term - costs and tax add up.

Scam patterns seen in Australia

Regulators keep warning about crypto and 'AI trading' platforms promising high fixed results, fake comparison and celebrity-ad websites, unlicensed offshore brokers, cold calls about investments, and pressure to move your super to a self-managed fund to invest in one scheme.

Where to check and report

Check: ASIC's professional registers (Financial Advisers Register and AFS licensees). Report: Scamwatch, your bank straight away if you paid, and ASIC for complaints about licensed firms.

Got a message or a tip? Paste it into Tip Check.

General information, not a recommendation. This page explains how things work. It does not pick a product for you or say where to put your money, and it does not consider your goals or situation. For personal advice talk to a licensed adviser in Australia - a licensed financial adviser (on ASIC's Financial Advisers Register).

Frequently asked questions

How do I know if an offer is a scam?

Promised returns, hurry, pay-first and fees to withdraw are strong warning signs. Check the licence yourself and paste messages into Tip Check.

I already paid. What now?

Contact your bank straight away, keep every message and report it to the official channel linked above.

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