Super Scams: 6 Tips for Keeping Your Retirement Fund Safe from Scammers

Considering how difficult it is to access your super before you reach the preservation age, you’d think it’d be relatively safe from scammers. However, that sadly isn’t the case. Increasingly sophisticated methods are being used to target Australians with promises of lucrative investments, often resulting in substantial financial losses. Safeguarding your retirement fund from such malicious schemes is crucial. To help you in this endeavour, here are six essential strategies you can use to shield your superannuation from scammers.

1. Seek Guidance from Professionals

Your first and most important step should be to set yourself up with a professional you can turn to whenever you’re in doubt. If you have a self-managed super fund, you’ll need to find a qualified SMSF accountant. Otherwise, you can simply engage a certified financial advisor who can provide invaluable insights into managing your superannuation effectively. These experts offer tailored advice on understanding your superannuation options, reviewing investment strategies, and guiding contribution planning strategies, ensuring you always make informed decisions regarding your financial future. With a professional on your side, you’ll have a deeper understanding of what is and isn’t possible with your super investment strategy, meaning you’ll be better equipped to spot scam attempts if they come your way.

2. Verify Callers’ Authenticity

Scammers often pose as representatives of legitimate superannuation funds, luring Australians into divulging sensitive information. Should you receive unsolicited calls claiming association with your super fund, refrain from sharing any personal details. Instead, hang up and independently contact your fund using the official number listed on their verified website. This way, you can confirm the authenticity of the communication. If it really was your super fund calling, all you’ll have lost is a couple of minutes of your time – well worth it for the peace of mind you’ll have that you’re not getting sucked into a scam.

3. Exercise Caution with Unsolicited Offers

Be cautious when approached with unsolicited offers suggesting ways to access or withdraw your superannuation for immediate benefits. As a general rule, offers that seem exceedingly advantageous almost always fall into the “too good to be true” category. However, the scammers will usually apply a sense of urgency, making you feel like you need to act now or you’ll miss out. Instead of making any on-the-spot decisions, always seek advice from your trusted financial advisor before making substantial alterations to your superannuation.

4. Regularly Monitor Your Statements

Regularly reviewing your superannuation statements is a proactive step in detecting any irregularities or unauthorized transactions. Swiftly report any suspicious activities to prevent potential losses and safeguard your financial interests.

5. Protect Personal Information

Scammers frequently employ phishing tactics to acquire personal information. Unsolicited emails containing deceptive links could compromise your computer’s security and grant them access to your login credentials. So exercise caution when interacting with email links. Refrain from sharing personal details with unverified sources to mitigate the risk of falling victim to such scams.

6. Stay Updated on Emerging Scams

A recent scam involves fraudulent cold calls, wherein scammers set up self-managed super funds under false pretences of high returns. Fictitious entities like ‘Invest Fast’ or ‘Invest Quick’ from supposed Melbourne-based financial firms deceive victims into entrusting their superannuation, resulting in devastating financial consequences. Staying informed about this and other evolving scam methodologies will enhance your vigilance and protect your hard-earned funds.

Your superannuation represents your future financial security, so you must remain vigilant and well-informed to shield it from scammers.

Disclaimer: The information above is for informational purposes only and should not be considered financial advice. Before making decisions concerning your superannuation, it is advisable to consult a qualified financial advisor.