Money has been alerted to multiple cases where its name and Clitheroe's identity are being misused to promote so-called "hot stock tips" in messaging groups.

Clitheroe has issued a clear warning.

"I am absolutely not in any WhatsApp group share tipping," he says. "Scams are everywhere."

The alert comes as ASIC warns these groups are increasingly being used to funnel users into fake crypto trading platforms that can wipe out savings.

Fake platforms that look real

These scams are built to appear legitimate.

Fraudsters mimic well-known brands and personalities to build trust, then direct users to investment platforms that appear to show live trading and strong returns.

But ASIC says the activity is entirely fake.

There is no real trading taking place. Any money deposited goes straight to scammers.

Victims are often told they must pay extra fees to withdraw their funds. In reality, these payments also go to scammers, and no money is ever returned.

Some are then targeted again through so-called recovery scams, where fraudsters promise to help recover losses, for a fee.

How the scam unfolds

These scams typically follow a clear pattern:

• Social media ads or posts promise lucrative stock tips
• Users are invited to join WhatsApp or messaging groups
• Scammers impersonate trusted brands or well-known figures
• Members are directed to a specific trading platform
• Fake profits are shown to build confidence
• Attempts to withdraw funds trigger demands for more money

ASIC has also warned these groups can be used to coordinate illegal pump and dump schemes targeting retail investors.

Younger investors particularly exposed

ASIC research suggests younger Australians are especially vulnerable to these tactics.

A Moneysmart survey of people aged 18 to 28 found that 23% own crypto assets and 66% take a short-term, speculative approach.

A third trade based on social media influencers, while 72% have seen crypto ads on social media, and 41% have been approached directly about crypto investing.

The data highlights how easily scammers can reach new investors through digital platforms.

Red flags you should not ignore

Consumers are being urged to watch for warning signs, including:

• Unsolicited invitations to messaging groups
• Claims of guaranteed or unusually high returns
• Pressure to act quickly
• Requests to transfer money to unfamiliar platforms
• Demands for fees to access or withdraw funds

If something feels off, it probably is.

How to protect yourself

ASIC's advice is simple:

STOP
Do not share personal or financial information or act on unsolicited investment advice. Avoid rushed decisions.

CHECK
Verify whether the provider is legitimate. Check ASIC registers and the AUSTRAC Virtual Asset Service Provider Register. Search for warnings online.

PROTECT
Act quickly if something feels wrong. Contact your bank immediately if money has been sent and report the incident.

What to do if you see a fake group

If you come across one of these groups, do not respond or engage, or share personal or financial information.

Report the group in WhatsApp by tapping the group name and selecting "Report group", then report the scam to Scamwatch

Money is urging readers to act.

If you see its name or branding being misused, report it. Each report helps limit the reach of these scams and protect others.

Scammers aren't just playing with emotions anymore, warn banks and regulators.

They are using cutting-edge AI tools that make fraudulent profiles, videos and conversations almost impossible to distinguish from the real thing.

What are romance scams and why are they increasing?

Romance scams have long been one of the most financially devastating types of fraud. Back in 2016, more than 4100 Australians reported dating and romance scams, with losses exceeding $25 million - the highest across all scam categories at the time.

But today, the threat has evolved. Advances in AI have supercharged scammers' abilities to deceive, manipulate and exploit people looking for a genuine connection online.

 

 

 

 

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How AI is supercharging modern romance scams

According to the Australian Banking Association (ABA), criminals now use AI to create hyper-realistic identities that are almost impossible to detect. ABA CEO Simon Birmingham warns the technology has transformed romance scams dramatically.

"Artificial intelligence has made it easier than ever for criminals to pose as your perfect match," he says.

Scammers now commonly use:

• Deepfake photos and flawless profiles
  AI-generated images make profile pictures look professional, attractive and authentic.
• AI-driven conversations tailored to you
  Scammers scrape details from your dating profile or social media to craft emotionally intense, personalised chats that feel authentic but are generated by chatbots.
• Cloned voices and deepfake video calls
  Highly realistic video or voice calls can make victims feel they've met the person they're talking to - even when no such person exists.

These tools help scammers build trust quickly, making it easier for them to eventually ask for money, cryptocurrency, or access to financial accounts.

What red flags should you look for in AI romance scams?

Whether you're on dating apps or chatting via social media, stay alert for these red flags:

🚩Perfect-looking, hyper-professional photos
🚩Vague, repetitive or overly polished answers - a sign you may be chatting with AI
🚩Fast emotional escalation, including sudden declarations of love
🚩Attempts to move you quickly off the app to private messaging platforms
🚩Reluctance to meet in person, even with good excuses
🚩Suspiciously good English or oddly inconsistent details

Remember: scammers play to your emotions. If someone feels "too perfect", that may be a deliberate tactic.

Why scammers push for fast emotional bonds

Scammers often express intense feelings early - sometimes within days - because emotional investment makes victims more vulnerable. Once trust is built, they begin their end game: asking for money.

Requests often involve:

• Emergencies
• Medical crises
• Stranded travel situations
• "Once-in-a-lifetime" investment opportunities

If someone you've never met asks for money - it's a scam.

What is the biggest warning sign of a romance scam?

Any request for money, cryptocurrency, gift cards, or your financial details is the clearest red flag.

Scammers may spend weeks, months or even years grooming a victim before making the ask. The delay is part of the manipulation.

How banks and regulators are responding

Banks are now using AI of their own to detect unusual transactions, block scam payments and shut down fraudulent accounts before money disappears.

But they say vigilance from customers is still the strongest line of defence.

The ABA is also calling on the Federal Government to hold dating apps accountable under the scam-prevention framework, requiring them to strengthen user protections and meet tougher safety standards, just as banks, telcos, and digital platforms already must.

Top tips to protect yourself from AI romance scams

Use these steps to stay safe while dating online:

• Be sceptical of flawless photos and profiles.
• Watch for vague or recycled answers - a sign of chatbot responses.
• Don't move off a dating app too quickly.
• Never send money or cryptocurrency to someone you haven't met in person.
• Pause before responding to urgent requests, especially involving medical emergencies or investments.
• Trust your instincts - if something feels off, step back.

What to do if you think you've been scammed

Act quickly.

• Contact your bank or financial institution immediately.
• Report the scam to Scamwatch at scamwatch.gov.au.
• Stop all communication with the suspected scammer.

By the next day, the Internet was abuzz with claims that "super withdrawals are now tax-free if you're over 60" and that "the tax rate on early withdrawals just went up".

One of these is real policy (the first sentence, for the record). The other is pure fiction, and it's spreading fast.

It's just one example of Australia's new wave of fake superannuation news, convincing-looking 'articles' designed to trick readers into clicking for ad revenue or, worse, handing over MyGov details and tax file numbers to scammers.

According to the Australian Taxation Office (ATO), misleading claims about super access are surging online, blurring the line between credible financial news and dangerous misinformation.

"Getting your tax and superannuation obligations wrong can be serious. You need to be careful about acting on advice from a person, business or organisation that isn't a qualified expert," the ATO told Money.

The anatomy of fake news

Trusting the ATO over a site called The Pelicans Nest might seem obvious. But in practice, spotting misinformation isn't always easy.

When scrolling, most people click on the headline, not the publication. And while fact-checking is crucial, news often implicitly asks the public to trust what's on the page.

So, what should you look for? A privacy policy, an About Us page, terms and conditions, a physical address, and real contact details are all basic credibility markers.

At first glance, The Pelicans Nest ticks all the boxes, with tables, FAQs, and even social media icons across its homepage. It looks legitimate, and that's exactly the point: to build false trust.

You've probably never heard of The Pelicans Nest, but with thousands of news sites competing for clicks, who can keep track of them all?

And while it's no New York Times (or Money, for that matter), it looks the part - even though it's plastered with ads.

Looking closer, readers will discover there is no privacy policy, no terms, no real contact details. The façade falls apart fast.

Every story is written by the same 'journalist', Collins Bodewa, all published on the same day.

And The Pelicans Nest isn't alone. Sites like Basic Steel Adelaide and Supercar Rides are running the same story.

Some go even further, posting disclaimers that absolve them of responsibility for "loss of data or profits related to the use of the website". Others list disconnected phone numbers or email addresses that never reply.

The bylines are equally implausible. One writer, "Harvey Lopez", claims to be a "dedicated news content writer" covering global finance.

A skeptical reader might wonder what Lopez is doing writing for a site that also calls itself "a one-stop destination for quality steel supplies in Adelaide."

The AI Overview problem

It's not the first time these scams have circulated. The ATO issued similar warnings back in May just before the July 1 super changes.

"This is classic fake news," ATO Deputy Commissioner Emma Rosenzweig said at the time.

"Always consider the source and think twice before acting on anything you hear from non-official websites or on social media."

Spotting fake news websites is a challenge itself. But today, you don't even need to visit them to be misinformed.

Google search results now often include AI Overviews, short summaries that pull in information from multiple sites to provide quick answers without a click.

The problem is these overviews draw from indexed sources, including fake news.

In one recent search, misinformation about "tax-free super withdrawals" appeared in the AI Overview, citing five supposed "sources". All of them were fake.

The ATO warns that AI summaries can easily include content that's "incorrect, incomplete, outdated or not applicable to your situation".

"Always check the source of information that the AI tool summarises," an ATO spokesperson told Money. "Click through to the source and confirm it comes from a trusted, official website."

Regulators respond

ASIC says it's aware of the misinformation sites and is investigating their intent. The regulator has previously warned that fake news and scam websites are often used to lure consumers into investment scams.

In August, ASIC's Moneysmart warned of a 25% rise in investment scam websites using fake celebrity endorsements.

Through its scam takedown service, ASIC removed more than 14,000 investment scam and phishing websites between July 2023 and June 2025, including:

• 8330 fake investment platform scams
• 2465 phishing scam links
• 3015 cryptocurrency investment scams

"Scammers can create fake digital ads, websites, news and reviews to make investments seem legitimate," an ASIC spokesperson said.

"Consumers should exercise caution when relying on testimonials, celebrity endorsements or a professional-looking website to make decisions."

Real super changes

Superannuation rules are complex, and that's exactly what scammers exploit.

They feed on confusion and fear, creating fake urgency to make Australians feel like they're falling behind.

But there are actual super rule changes to keep in mind, so here's what's really changing:

Payday Super: The government introduced a bill requiring employers to pay super at the same time as wages from July next year if passed. The change aims to curb unpaid super, currently costing workers $5.2 billion a year, and help savings grow faster through compounding.

High-balance tax reform: On October 13, Treasurer Jim Chalmers announced a revised plan to tax large super balances. From 1 July 2026, earnings on balances above $3 million will be taxed at 30%, and those above $10 million at 40%, with thresholds indexed and no tax on unrealised gains.

LISTO boost: The Low Income Super Tax Offset will rise from $500 to $810 from 2027, expanding eligibility to incomes up to $45,000.

These changes come from trusted government and financial sources, not AI summaries or anonymous ad-riddled blogs.

But it raises the question: should it really be this hard to find reliable information amid the noise?

How to report misinformation

Visit Moneysmart.gov.au for official financial guidance, including how to spot scams and what to do if you think you've been targeted.

If you believe you've found or fallen for a scam, report it to Scamwatch.gov.au.

You can confidentially report misinformation or disinformation by completing the tip-off form on the ATO website or in the ATO app, or call 1800 060 062.

In early July, Qantas announced that the personal details of 5.7 million customers had been stolen after a third-party platform used by the airline was breached.

Qantas has since confirmed that, for the majority of customers, the stolen information includes names, email addresses and Qantas Frequent Flyer details. However, a smaller number have also had their addresses, dates of birth, genders and phone numbers exposed.

The group allegedly behind the data breach - a hacking collective known as Scattered Lapsus$ Hunters - had demanded a ransom from the airline in order not to release the data.

The ransom deadline appears to have expired on Saturday though, with the group reportedly releasing the data onto the dark web accompanied by the message, "Don't be the next headline, should have paid the ransom", according to Guardian Australia.

Qantas confirmed as much in a statement released on Sunday which noted that it was one of a number of companies to have had data released by cyber criminals following the breach in July.

Scammers building 'detailed' profiles   

The Qantas incident is just the latest in a series of major data breaches in recent years.

Around 9.8 million Optus customers had their information stolen back in September 2022 and 9.7 million Medibank customers were affected in an incident the following month.

In total, 6653 data breaches have been reported to the Office of the Australian Information Commissioner since 2018 under the Notifiable Data Breaches scheme.

Unfortunately, this means that many Australians have had personal information leaked in one, or multiple, data breaches - information which scammers may be able to exploit.

"Australia's data breach landscape has reached a tipping point. Cybercriminals are connecting the dots across years of leaks to create full identity profiles," says Dr Arash Shaghaghi, a senior lecturer in cyber security at the University of New South Wales.

"After Optus, Medibank, Latitude and now Qantas, Australians need to accept that some of their personal information is already circulating.

"Attackers are no longer guessing passwords. They're assembling detailed identity profiles from multiple breaches and using them to launch highly targeted, personalised attacks."

What scams should Qantas customers watch out for?  

In its statement, Qantas urged customers to remain vigilant about any misuse of their personal information that could result from the recent release of data.

One way that scammers may seek to exploit it is via a method known as 'spear phishing'.

As Shaghaghi explains, this is a targeted attack - typically done via email, but sometimes by text or call - designed to trick individuals or organisations into taking malicious action or divulging even more sensitive information.

"Expect highly convincing phishing or 'Qantas refund' scams using your real details.

"Criminals will exploit the trust that comes with accurate personal data to trick victims into revealing credit cards or login credentials."

Because scammers are able to compile profiles using data from multiple breaches, Shaghaghi says that the threat won't just be in the coming months. Australians will need to be vigilant long-term.

"After previous leaks we've seen criminals combine old breaches to build detailed identity profiles (known as 'fullz') that enable loan fraud, Centrelink or tax-refund scams and social engineering.

"For example, scammers used data from the Optus breach months later to file fake credit applications and contact victims pretending to be banks or government agencies.

"The Qantas dataset will now feed that same ecosystem - boosting the credibility of future scams that appear 'too real'."

How can people protect themselves? 

There are measures that Qantas customers - or any Australians affected by a data breach - may want to consider in order to help protect themselves against scams.

1. Lock down your accounts 

The number one priority, Shaghaghi says, should be enabling Multi-Factor Authentication (MFA). After that, he recommends changing and strengthening your passwords.

"Turn on MFA on your email, banking and key online accounts immediately. It's the single most effective defense against stolen data being used for account takeover.

"Update your Qantas password and any others that might be reused. Each account should have a strong, unique password."

2. Be wary of scam attempts  

People that have had their personal details leaked should be alive to the possibility that they will be targeted, Shaghaghi says. This doesn't need to prompt alarm, but they should be vigilant.

"Be wary of unsolicited emails, texts or calls claiming to be from Qantas, insurers or 'compensation teams'. Criminals are using leaked details like your real name, date of birth and Frequent Flyer number to make scams look legitimate.

"Don't follow links in unexpected messages. Instead, go directly to the official Qantas site or app to verify account details."

Qantas customers in particular can keep abreast of any relevant scams through the airlines' official scam assistance webpage.

3. Monitor and report anything suspicious  

Given that many scammers will ultimately be trying to get access to people's money, Shaghaghi suggests keeping an extra close eye on your financial accounts and credit score.

"Review bank and credit card statements frequently for unusual activity. You may also be able to obtain free credit reports from Equifax, Experian and illion to check for unauthorised credit applications."

If you do spot anything suspicious get in contact with your financial institution directly, and you can make a report through the Australian Cyber Security Centre.

Australians are continuously facing attacks. Recognising the red flags is not optional, it's essential.

According to Scamwatch, Australians lost a staggering $2.03 billion to scams in 2024.

At NAB, we see the impact of scams every day. On average, we stop and recover close to $2 million in scam payments each month..

While it can be difficult to prevent scams, knowing the common threats and how to spot them, can help to reduce your risk and understanding what steps to take if impacted by a scam can help ease the stress and uncertainty.

Whether you're managing personal finances, running a business or safeguarding family wealth, understanding how scams work is your first line of defence.

Investment scams: Too good to be true

Investment scams are among the most convincing. Even financially savvy people can be caught off guard by offers that look legitimate but promise extraordinary returns with little or no risk.

These scams often involve shares, cryptocurrencies, foreign currency trading, term deposits or real estate schemes.

They may use fake investment apps and request remote access to devices under the guise of setting up trading platforms or impersonating banks, insurers and financial advisers to appear credible.

That's why at NAB Private Wealth we emphasise verification.

If you are not dealing with a trusted banker, investment specialist or adviser, always check an adviser's credentials through the Australian Securities and Investment Commission (ASIC) before investing and making any commitments.

Confirm they hold an Australian Financial Services Licence (AFSL) or Australian Credit Licence (ACL) and make sure any prospectus is registered.

You should also check the official website of the company to confirm any offers.

Phishing: The digital deception

Phishing messages are one of the most common and deceptive threats.

These messages impersonate trusted entities including banks, government departments and even family members in an attempt to convince people to reveal personal information.

They create a sense of urgency to encourage action, like claiming you'll face a fine or miss a delivery - so you click a link without checking the details.

I have both seen and heard stories of people with varying levels of financial knowledge and experience impacted by phishing.

The red flags are usually the same: generic greetings, unusual web addresses and poor grammar.

Some criminals even use technology to blend their messages with legitimate communications, which makes them harder to detect.

That is why I encourage clients to be diligent with their digital practices.

Never provide personal or banking information through a link and always verify the sender's identity directly with the organisation.

Using Multi-Factor Authentication (MFA) adds a vital layer of protection. Even if a password is compromised, the account stays secure, as long as you keep your MFA codes safe.

Remote access scams: Inviting criminals in

Remote access scams are particularly dangerous because they give criminals control over your devices.

Once they gain control they can steal data, transfer funds, monitor emails and even lock files for ransom.

In NAB's efforts to combat scams, we often see criminals start with an unexpected call, text, or pop-up message claiming to be from your bank, telco or even the police.

Individuals are asked to download software to "fix" a problem or transfer money to a "safe" account. Your bank will never ask you to do either.

If contacted unexpectedly, hang up and verify the caller's identity using official contact details. Never share your internet banking login or security codes.

If you suspect a scam, act quickly and call your bank straight away if you've shared your information or sent money.

Invoice scams: When business gets hijacked

Invoice scams often begin with a compromised email account, allowing criminals to impersonate legitimate businesses and send fake invoices or altered payment details.

This tactic, known as invoice scams, was the most reported scam type among small businesses in 2024, according to Scamwatch.

At NAB, we've seen how damaging this can be for business owners, households and those managing complex financial structures.

Red flags include unexpected requests to click links, scan QR codes, or download attachments.

A sudden change in bank details or an invoice that looks slightly unusual should always prompt a second check.

The best safeguard is to pause and verify. Confirm payment instructions using publicly listed contact details, not those in a suspicious email.

Tools such as PayID and BPay Biller Codes add confidence by displaying the legal name of the payee before money leaves your account.

Stop, check, protect: Your scam defence strategy

At NAB we encourage everyone to remember a simple but powerful approach: stop, check and protect.

• Stop before you act: If something feels rushed or too good to be true, pause
• Check before you share: Verify identities and payment details through official sources
• Protect if you suspect: Report suspicious activity immediately to prevent further threats and minimise impacts

Scams rely on confusion and pressure to rush decisions. Taking your time to verify details is one of the strongest defences.

Personal information is one of your most valuable assets, and in the wrong hands, it can be used to carry out fraud such as taking out loans or opening credit cards in your name.

At NAB Private Wealth, scam prevention is an ongoing conversation with our clients, but the message applies to all Australians.

NAB is hosting The Big Scam Education Conversation on Tuesday, 26 August during Scams Awareness Week.

Everyone is welcome to join and learn how to protect themselves, their families, and their businesses.

The reality is that with many scams - particularly online dating and romance scams - scammers need to take on a face to pair with the fabricated persona they've created to manipulate their victims.

And as it turns out, scammers have a type.

Between January and April, reverse image search engine ProFaceFinder analysed thousands of anonymised images submitted by users who suspected that they were being scammed.

As a result of the analysis, the firm released a report identifying 72 images frequently linked with fake identities used in romance scams.

It found that scammers prefer to use images of younger people with attractive faces that appear friendly, trustworthy and have a degree of status or authority.

Scammers were also more likely to select cropped or low-quality images to make reverse searches more difficult, and to source them from inactive social media profiles or via using artificial intelligence to make recognition harder.

"These images aren't selected at random. Scammers optimise for emotional impact and visual credibility. The more an image looks 'real, but untraceable,' the more likely it is to be reused," the report states.

What types of images do scammers use?

Perhaps unsurprisingly, ProFaceFinder discovered that the traits commonly identified in images linked to scams differed depending on whether the profile was a man or woman.

For instance, men were typically aged in their late teens to thirties and were often wearing uniforms or posing with dogs or other pets.

The images of men were also more likely to feature a serious or neutral expression and would often highlight their physique or their active lifestyle.

Meanwhile, the research found that images of women were also likely to feature people aged in their late teens to thirties, but without any prominent lifestyle indictors (e.g. a specific work uniform).

Instead, images of women were more likely to be selfies or closely cropped images featuring softer lighting. Scammers were also likely to use images of women sporting friendly or even 'flirty' expressions.

Romance scam red flags

The unfortunate reality is that these sorts of images clearly have a role in making romance scams one of the more pervasive types of scams.

In the first five months of 2025, Australians reported losses of more than $12 million to romance scams alone, according to Scamwatch data.

In fact, investment ($73 million) and phishing scams ($15 million) were the only categories to record greater losses over the same period.

So how can people avoid falling victim to romance scams? Broadly speaking, there are no shortage of signs and red flags that Scamwatch advises Aussies to look out for.

More specifically though, it suggests that fake profiles created on dating apps and social media which are used in romance scams often feature photos that look overly professional, or blurry and unclear.

The profile may also contain little personal information, and any linked social media accounts are likely to have relatively few connections and little engagement from other people.

Scamwatch also recommends that if anything seems suspicious about a profile, it may be worth conducting a reserve image search on the photos and searching for their name and the word 'scam'.

They are captivated, asking insightful personal questions, and have even given you a pet name. And now they're suggesting you communicate outside the dating app, via text or instant messaging instead.

Whirlwind relationship or romance scam in action?

Aussies reported more than 3200 romance scams to Scamwatch last year, totalling almost $24 million in losses.

The real number could be much higher.

"Unfortunately, many people might be too embarrassed to report they have been a victim of a romance scam which makes it hard to quantify the impact," says Matt Hannan, head of fraud management at HSBC Australia.

Online dating has become "a scammer's paradise", says Australian Banking Association CEO Anna Bligh.

If weeding out humans with dubious intentions wasn't demoralising enough, Aussies looking for love must now contend with artificial intelligence and deepfake scams infiltrating the online dating world.

"Scammers don't just send dodgy DMs to lure victims anymore -they deploy AI and deepfake technology to create fake profiles and identities," Bligh says.

"These scams are becoming more sophisticated, with artificially generated fake profiles and chatbots making fake love look like the real deal."

According to the ABA, Aussies should think twice before swiping right on professional or flawless looking photos, or limited or inconsistent profile information.

"The obvious one is the profile picture," says Money reader James Lee*. "If they look like an impossibly beautiful Instagram model, that's a red flag.

"If they start talking about crypto, that's a red flag too."

The ABA agrees.

Vague and repetitive answers (this could indicate you're chatting to a chatbot), pressure to move your chat to a messaging platform such as WhatsApp, professing their love for you early and often (known as love bombing), emotional requests for money, or attempts to convince you to invest in schemes, often with cryptocurrency, are all red flags that you may be the target of a romance scam.

Bligh says scammers who target those on dating apps are the "lowest of the low".

"Scammers prey on Australians looking for love and turn romance into heartbreak," Bligh says.

"People don't just lose money - they suffer deep emotional trauma, thinking they've found love only to realise they are being swindled."

It's a disheartening experience, Lee says.

"It's really saddening when you go in with the best of intentions and an anonymous scammer on the other side is just trying to play you."

Whether your potential suitor claims to be from the next suburb or Brad Pitt, as in the case of one victim, banking, scam and dating app experts agree on one thing: if it seems too good to be true, it is.

"If something feels too good to be true and you're starting to sense red flags, don't ignore it - either do some digging or walk away before you lose more than just your heart," Bligh says.

"Never share financial information or send money to someone you haven't met in person and report suspicious activity if you have been targeted."

A spokesperson for the National Anti-Scam Centre also urged victims to come forward.

"Contacting support services can help victims understand what happened and also tells authorities about scam activities so they can work on making it harder for scams to succeed.

"The more we talk about scams, the less power the scammers have."

*Not his real name

Need to talk?
Report a scam: scamwatch.gov.au/report-a-scam
National Debt Helpline: 1800 007 007

Unfortunately, it's also a time when scammers ramp up their activities, hoping to catch people off guard.

Scammers are criminals who use a wide range of techniques and scenarios to steal money from you. The distractions of the festive season can see people let their guard down, which unfortunately can have an immediate and longer-term impact on your finances.

Scammers prey on the high volume of transactions, the festive spirit, and even the charitable giving that characterises the season. That's why we are sharing some of the most common scams affecting Australians and a few that are seeing a surge.

Watch out for these common 12 scams of Christmas this holiday season:

1. Online shopping scams

Online shopping is popular during the holidays, and scammers set up fake websites offering deals on sought-after items.

These fake sites often mimic real retailers, tricking customers into entering their payment details, only to receive counterfeit goods or nothing at all. Australians should double-check website URLs and stick to trusted retailers.

2. Parcel delivery scams

With more people shopping online, parcel delivery scams are widespread.

Scammers send fake emails or texts claiming there's an issue with delivery and requesting payment or personal details to "release" the package. Clicking on links in these messages can lead to phishing websites that capture your data or install malware on your device.

3. Charity scams

The holidays inspire people to give, and scammers take advantage by setting up fake charities.

They often use the names of well-known charities or concoct emotional stories to solicit donations. To avoid this, donate directly through established charity websites and be cautious about donating via cold calls or social media.

4. Fake gift card scams

Fake gift card scams come in a few forms, but one of the most common involves scammers selling "discounted" gift cards that turn out to be invalid.

Another tactic is emailing or messaging people claiming they've won a gift card, but to redeem it, they must provide personal information or pay a small "fee."

5. Holiday travel scams

Many Australians book trips to visit family or take holidays over the summer season.

Scammers set up fake travel websites or third-party booking platforms offering fantastic holiday deals, only for victims to realise the booking doesn't exist. Always verify travel agencies and booking sites before making payments.

6. Romance scams

While not strictly a holiday-only scam, romance scams see a spike in December as people seek companionship during the festive season.

Scammers create fake profiles on dating sites or social media, forming relationships with victims and eventually asking for financial help, often with a fabricated emergency.

7. Cryptocurrency scams

December can be an expensive time of year, with Australians having to spend money on buying presents and travelling to see friends and family.

Scammers prey on this by luring in unsuspecting victims to make a quick buck by promising lucrative returns on cryptocurrency investments, by using fake testimonials or celebrity endorsements. Be wary of any unsolicited investment offers and avoid "too good to be true" schemes.

8. Phishing emails and smishing (SMS phishing)

Phishing emails and smishing attacks tend to increase during the holidays. Scammers impersonate well-known companies, banks, or delivery services, sending messages with links to fake websites where they capture personal details.

Never click on links in unsolicited messages; instead, access sites directly through a trusted browser.

9. Social media 'Secret Santa' or 'gift exchange' scams

Social media posts encourage people to join "gift exchanges" or "secret Santa" gift-swapping events.

They typically promise that if you send one gift, you'll receive several in return. However, these schemes rarely result in any gifts and are often a form of pyramid scheme designed to collect personal information.

10. Fake surveys and competitions

Scammers set up fake holiday-themed surveys or competitions on social media, luring participants with promises of prizes.

Participants are asked to provide personal information or pay a small 'entry fee' to win. Be cautious of any survey or competition that seems too good to be true or asks for sensitive information.

11. Fake crowdfunding appeals

Crowdfunding platforms make it easy to raise money for legitimate causes, but they also attract scammers.

Some set up fake campaigns, especially around the holidays, tugging at heartstrings to solicit donations. Australians should check if the campaign is backed by a reputable organisation or verified by the crowdfunding platform before donating.

12. Holiday job scams

The holiday season offers temporary job opportunities, which scammers exploit by posting fake job ads online. These scams often require applicants to provide personal information or pay a 'fee' to apply.

Some may even "hire" you for a role that involves fraudulent activity, like reshipping goods bought with stolen credit cards.

Scammers are always working on new ways to separate you from your money or personal information. By staying vigilant, double-checking offers, and trusting only verified sources, Australians can outsmart scammers and keep their holidays joyful and scam-free.

With a heightened awareness of these 12 scams of Christmas, Australians can enjoy a safer, more secure holiday season.

'Adversarial' mindset drives 900 scam complaints each month

Don't assume your bank will wear the cost, or even lend a sympathetic ear, if you fall victim to a scam.

The Australian Financial Complaints Authority (AFCA) handled more 104,861 complaints last financial year (2023/24), and one in 10 of these - over 10,000 complaints - related to scams.

AFCA says the surge in scams complaints was one of the "most worrying trends" of the past financial year, with the ombudsman receiving an average of 900 scam complaints each month.

Chief Ombudsman David Locke says initiatives such as the Federal Government's National Anti-Scams Centre and steps like account name checking by some of the banks are starting to have an impact.

"This is not just about the banks though," adds Locke.

"In many cases consumers would never have been scammed were it not for the actions or inactions of telecommunication companies and digital platforms."

Locke is calling on firms to approach complaints with a resolution mindset rather than taking an adversarial position with consumers - especially when it comes to scams.

Safe sites for online marketplace exchange set-up outside cop shops

Love a Facebook Marketplace bargain but worried about how to stay safe?

Special zones are being set up outside 35 of Victoria's 24-hour police stations, where buyers and sellers can exchange items being sold via online marketplaces.

The exchange sites provide people with a safer alternative than meeting strangers in their homes, parks, or car parks.

The concept was developed following an increase in robberies, thefts and assaults linked to online trading.

Police Commander Tim Tully says, "While these sites are a safer alternative than meeting someone at your home or in a dimly lit area with no CCTV, we still encourage people to consider the risks of meeting a person they've never met before."

He suggests meeting during daylight hours if possible and bringing someone with you to the exchange.

Used car safety ratings show cheapies can be a death trap

The NSW Government has released its 2024 Used Car Safety guide to identify pre-loved cars that offer maximum protection for various price points.

NSW Minister for Roads John Graham,says, "The hunt for a second-hand car has generally focused on a car that will not break down." No surprise there. No one wants to buy a lemon.

"What is just as important is considering which used car delivers the safest performance for your budget," says Graham. "Your choice might literally save your life."

The guide found that a driver of the lowest rated vehicle is 10 times more likely to be killed or seriously injured in a crash than a driver in the safest vehicle.

Footage released by the NSW Government shows that in a head-on crash, a one-star rated 2012 Great Wall V200 was decimated, while a four-star 2012 Holden Colorado provided significantly better safety protection.

With more than 60% of the best-rated cars available for $10,000 or less, the most expensive cars don't always mean a safer choice.

According to the guide, safer picks include the Mazda 3 (2013-2019) and Toyota Camry (2011-2022).

Among the cars that received a very poor one-star rating are the Ford Fiesta (2004-2008), Hyundai Accent (2000-2006) and Holden Commodore VT/VX (1997-2002).

Head to the NSW state government's Towards Zero website for the complete Used Car guide.

250,000 Aussies dob in a tax cheat

'Dobbing' may be un-Australian but not when it comes to tax cheats.

Over the past five years, the Australian Taxation Office (ATO) has received 250,000 tip-offs about tax avoidance and other dishonest behaviours.

More than 47,000 tip-offs were reported in the 2023-24 financial year alone - close to 1,000 tip-offs each week.

ATO Assistant Commissioner Tony Goding says Australians are fed up with dodgy behaviours.

"The number of reports we have received tells us that Aussies have had enough," says Goding.

"Dodging your tax obligations clearly no longer passes the 'pub test'. We're receiving tip-offs from other businesses, customers, members of the community, employees, and even family and friends."

Tip-offs were fuelled by issues such as businesses that demand customers pay with cash, paying workers in cash to avoid paying tax and super, not reporting sales, and situations where someone's lifestyle doesn't appear to match their income.

Aussies ignore golden rules of investing

A HSBC survey shows 65% of Australians have altered their approach to investing in the last six months, and it's seeing many fail to stick to tried and tested rules.

In particular, our appetite for international investments is decreasing, with only two in five investors likely to consider investing offshore in the next six months, down from almost half in 2022.

David Talbot, senior manager of investments at HSBC Australia, says investors should "remember the importance of having a diversified portfolio, both geographically and by sector, to weather market fluctuations".

The research shows younger Australians are investing in more volatile products.

Two in five Gen Z and over one in three Millennials are investing in cryptocurrency and non-fungible tokens (NFTs) more than any other financial product.

Talbot cautions, "Younger Australians should be cautious about volatile investment products and consider building a diversified portfolio for long term wealth generation."

The study also reveals misconceptions around how much money is needed to start investing.

On average, Aussie investors believe that $ 13,251 is the minimum amount needed to start investing.

In fact, it's possible to get into shares and exchange traded funds with as little as $500.

One in four teens fall victim to social media scams

The Federal Government has announced plans to legislate a minimum age for children to access social media, with Prime Minister Anthony Albanese saying, "We know social media is causing social harm, and it is taking kids away from real friends and real experiences."

Westpac has added another dimension to the debate, publishing research that shows one in four 13-17-year-olds have fallen victim to a scam on social media, with buying and selling scams the most common.

Westpac's group executive of customer and corporate services, Carolyn McCann, says, "It's incredibly concerning how prevalent scams are among under-18s. Teenagers seek connection with family and friends online but instead fall victim to scammers in record numbers."

McCann is encouraging parents to help teens understand the dangers of scams on social media. "Social media scam prevention can start as a conversation at the dinner table or in the car on the way to Saturday sport," she says.

One in three Aussies too slack to return online purchases

Over 17 million Australians shop online each month but as many of us would know, the merchandise doesn't always live up to expectations.

Yet, a Finder survey reveals that one in three Australians, about 7.3 million people, haven't bothered to return an online purchase that didn't meet their needs.

Holding onto these disappointing online deliveries is costing an average of $590 per shopper annually.

Almost one in five people say that returning online buys falls into the 'too hard' basket. One in 10 didn't want to pay for postage.

Finder's Rebecca Pike, says, "The incentive of getting an exchange or refund isn't enough to motivate us to return [items], leading to eye watering wastage."

According to the ACCC, consumers have the right to return a product if they think there's a problem.

The product does not have to be in its original packaging, but a business is entitled to ask consumers to provide some form of proof of purchase, so always hold onto the receipts.

Gold surges as US election drives bullion higher

More than 67 million Americans - and many more citizens globally - tuned in to watch this week's debate between US presidential hopefuls Donald Trump and Kamala Harris.

While November will reveal which contender came out on top, the real winner of the US election could be gold.

The precious metal's reputation as a store of value may have lost some of its lustre several years ago when digital currencies were all the rage.

But US election uncertainty has helped drive a 20% surge in the price of gold this year.

In Australia, the spot price per troy ounce has jumped from $2918 to a record high of almost $3800 over the past 12 months.

The World Gold Council (WGC) reports a four-month streak of inflows into global gold ETFs, which attracted an additional $US2.1 billion ($3.1 billion) from investors in August alone.

Will the gold rush continue past November?

Investment platform Saxo believes there are several reasons why gold could continue to shine post-election, citing geopolitical risks and potential shifts in US monetary policy, which is expected to see interest rates fall.

While a 400 ounce bar of bullion will set you back over $1.5 million, Aussie investors can get a slice of the gold action for far less through a number of gold-focused ETFs including the iShares Physical Gold ETF, VanEck Gold Bullion ETF and the BetaShares Gold Bullion ETF (AU$ Hedged).

Hunt for a new home outlasts loan pre-approvals

Home loan pre-approval can give home buyers a valuable confidence boost when they set off to inspect listed properties.

The catch is that loan pre-approvals have a limited shelf life - usually three to six months, and as property prices rise higher amid a shortage of homes, the time taken to find an affordable place is outpacing pre-approvals.

Broker group Mortgage Choice reports that 62% of home buyers say their property search is taking "much longer" than they anticipated.

One in three buyers have needed to secure multiple loan pre-approvals because they haven't found a property within the pre-approval window.

Deteriorating affordability is seeing eight out of 10 home buyers compromise their property wish list by:

• 60% - buying in a regional area/further out from the city 
• 50% - buying a smaller house 
• 35% - buying an apartment instead of a house.
• 23% - buying a duplex. 

Fewer Aussies working multiple jobs

The number of people working two or more jobs has fallen slightly - down 1.2% in the June quarter.

Even so, despite recent cost of living relief measures, the ABS says there are still 961,000 people juggling different roles to make ends meet.

The figures coincide with a warning from the Australian Taxation Office (ATO) about the potential for people with multiple income sources to face an unexpected tax debt.

Assistant Commissioner Rob Thomson says earning income from more than one source can push workers into a different tax bracket.

The ATO recommends claiming the tax-free threshold from only one employer. Workers can usually claim the tax-free threshold from the job that pays the highest salary or wage.

For those earning regular income through a variety of sources, including a 'side hustle', prepaying tax through instalments throughout the year can smooth out cashflow and be a way to avoid a tax debt.

In this episode of the Friends With Money podcast, financial adviser and On Your Own Two Feet author Helen Baker joins Money's Michelle Baltazar as they unlock the secrets to help rebuild your finances and protect yourself from cybercriminals. They discuss:

• What should you do in the first 48 hours after being scammed?
• How do you protect yourself from future fraud?
• How to avoid getting into more debt
• Steps to bounce back from your loss

Listen to this episode of Friends With Money

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

Rising childcare costs taking a toll

As out-of-pocket costs for childcare continue to rise, the proportion of children from low-income families attending early childhood education is falling, according to new data released by the Productivity Commission.

Minderoo Foundation's Jay Weatherill, who says this is concerning but unsurprising, claims the entire sector is well overdue for reform - and that the Activity Test should be the first thing to go. The Activity Test calculates families' childcare subsidies based on the number of hours spent working or undertaking other activities.

The Productivity Commission and ACCC have both called for it to be abolished or amended.

"More affordable early childhood education and care will ease cost-of-living pressure without driving up inflation," Weatherill says.

"Children from disadvantaged backgrounds disproportionately miss out on early childhood education and care. These years are crucial for children's development and kids shouldn't be missing out just because of their family circumstances."

Universally accessible, high-quality early childhood education would help all children to thrive and serve as a solution to the nation's cost-of-living crisis, he says. "It's time for access to early learning to be recognised by systems as a foundational right for every child and an investment in Australia's future."

For the love of dogs

A man who adopted two dogs from the Animal Welfare League Qld has left his Strathpine house to the charity, which goes to auction today. The man, who died in his fifties, found much solace in his beloved pets during the challenging times before his death.

The three-bedroom house at 4 Wordsworth St, Strathpine, a suburb of Moreton Bay, was built in the 1970s and has dual-living potential. Numerous bidders had registered for the auction in the lead up, expressing as much interest in supporting the AWLQ as they did in the actual house.

AWLQ CEO Katie Garrett says gifts in wills are becoming more common as people become more comfortable discussing their intentions before passing away.

"We can't do any of our work without the support of our community, and these acts of giving just mean so much for us, and mean we can keep going, and be here long into the future," she told The Courier Mail.

"But certainly, someone leaving their entire house to us like this person has is not the norm, which is why it is so humbling for myself and my team," she said. The median house price in Strathpine is $676,000, according to PropTrack.

Take a fresh look at your finances

In an effort to prevent future hardship, The Salvation Army is encouraging Australians to adopt some simple money tips. The Salvos are seeing a worrying rise in people feeling stressed about money and needing help because of dire financial circumstances - the charity assisted 13% more people in 2023 than the year before.

Rising interest rates and rent costs have significantly impacted more than a third of Australians, causing 17.5% to cut back on their insurance cover and one in five to forego medical help when needed.

The fallout from Christmas spending is also being felt - 31% of people used a credit card (up from 18% in 2022) and 15% relied on buy-now, pay-later options (up from 7.6%) to pay for Christmas.

"These past years have been tough for many and it's clear from what we are seeing on the frontline, and from our research, that people are finding it hard to manage their finances," says Kristen Hartnett from The Salvation Army's Moneycare financial counselling team.

The Salvos suggest people opt for cash payments wherever possible, to sidestep retailers' fees and, but also to slow spending and be more mindful about where their money is going.

If they're struggling to pay a bill, the Salvos encourage people to organise an affordable repayment plan with the relevant company. Focusing on a single action can also be helpful, whether it's exploring a better insurance deal, renegotiating your interest rate, checking they receive all eligible rebates or getting help from a financial counsellor.

"Sometimes, taking a few small active steps in the right direction can change the course of your financial situation for years to come," Hartnett says.

Crap at breakups

Nothing says closure like throwing away an ex's love letters and belongings, but more than 75% of Australians hold on to their ex's stuff after a breakup - and one in four of them keep these reminders around for more than two years.

Toilet paper company Who Gives a Crap is bringing back its Flush Your Ex initiative this Valentine's Day, inviting Aussies to send in their old love letters and cards to be turned into recycled toilet paper.

Relationship and Intimacy Coach Susie Kim says removing items from past relationships is essential to moving on romantically: "Holding on to things from your ex can often be a sign that you're not fully ready to move on and heal," she says. Two-thirds of the 5009 surveyed Aussies also acknowledge that holding on to an ex's things can impact future relationships.

Who Gives a Crap says the initiative gives heartbroken Aussies permission to get petty and find closure, while knowing that someone, somewhere will be wiping their bum with their ex's sweet nothings. Send your old love letters to Good Goods Pty Ltd, Attn: Flush Your Ex, Level 4/54 Wellington St, Collingwood VIC 3066

Deepfake cybercrims fleece firm out of $39 million

What hope is there for the rest of us now that a finance worker in Hong Kong has been tricked into handing over $39 million to scammers using a deepfake video call using AI to imitate his superiors.

Everyone on the multi-person video was fake, including the employee's UK-based chief financial officer. The employee had initially been suspicious on first seeing the phishing email sent to several people within the company, but proceeded after verifying the request on the video call.

The man, whose identity and that of the scammed company has not publicly been released, was then convinced to transfer the $39 million in 15 transactions involving five bank accounts. When he later grew suspicious, he contacted the company's headquarters to verify that the transaction was genuine.

Advances in AI technology mean scammers can take on a person's likeness and copy their voice almost immediately after video footage they can use as a reference is posted online.

According to a report in the Financial Times, there are now 46 million cyber attacks launched every day, many of them are targeted at financial institutions. For a deeper dive into cybersecurity, scams and AI, pick up the March issue of Money Magazine, on sale February 29 in newsagents.

Unfortunately, for an increasing number of Australians, the dream has ended in nightmare after losing their house deposit to fraudsters.

Real estate scams are happening frequently. Just last year, according to the Australian Competition and Consumer Commission, Australians lost over $2 billion to scammers, and at least $5 million was in the real estate sector.

It doesn't matter if you're a buyer, seller, or a renter. Cybercriminals know we're a nation obsessed with real estate, and they'll deceive any party if the financial incentive is large enough.

Below are two of the most prevalent real estate scams we see, and how you can avoid them when buying or renting a property.

Payment redirection scams

Also known as business email compromises, payment redirection scams are by far the most prevalent in the real estate industry.

They can involve a scammer posing as a trusted agent, such as the buyer's mortgage broker or conveyancer, and fraudulently emailing the victim to extract funds.

The scammer's email address is often almost identical to the real email address, they usually have a professional email signature and send a real-looking invoice for deposit payment.

If you receive an email with a BSB and account number asking for a deposit, always call the sender by phone to verbally confirm all numbers are correct and the request is genuine. You can also check the bank account details match the business name using online registries.

Secondly, cross-check the sender's email address against prior emails to confirm the address is legitimate.

If you can, ask the real estate agent or your conveyancer to move away from email as a channel for conducting transactions! It's time the real estate industry evolved toward new iOS, Android and web channels instead of email to help close the door on fraudsters.

As a recent example, a would-be scammer, posing as our partner law firm, emailed a customer to request immediate payment of $316,000 to a fraudulent trust account.

Given all our previous engagement with the customer was via app and not email, the customer immediately realised something was wrong, contacted us securely via app, and gave the scammer the slip.

Social media rental scams

Leasing scams involve the scammer posing as a property manager and posting fraudulent rental advertisements on social media marketplaces.

The scammer might even meet the renter outside the property and answer questions before offering a false lease agreement to sign and requesting the first month's rent and bond.

The first step to combat this is to avoid illegitimate channels to secure a rental, even when competition on properties is so high during record-low vacancy rates. Use trusted real estate websites, not social media.

If unsure, ask for the property manager's credentials, and depending on state, their registration certificate. Cross-check it with their LinkedIn profile and examine their digital presence on real estate websites.

Finally, if you're asked to pay a bond and the first month of rent to the same account, this is a sign of fraud. Bonds are never paid to the property manager. All states have established bond authorities who are legally required to hold the bond in trust for the duration of the tenancy.

Neither fraud nor Australia's property obsession will be going away any time soon. To avoid nightmare, home buyers and renters must be vigilant when navigating a new home purchase.

Scammers target fashion and footwear

If your weekend plans include scoping out red hot bargains in the four-day Black Friday/Cyber Monday sales, it pays to shop with care.

Scam Awareness Week officially kicks off on Monday, November 27, however Catriona Lowe, Deputy Chair of the ACCC, is getting in early by urging shoppers to be vigilant, especially if you're hunting for Black Friday discounts on clothing or shoes.

"We have seen an alarming increase in reports of fake online shopping website scams, which use the latest technology to look like genuine, well-known Australian fashion and footwear labels," says Lowe.

Even more worrying, the ACCC says scammers are paying for their fake websites to appear at the top of internet searches.

"This means you can't necessarily trust the first listing you see," warns Lowe.

To stay extra safe when shopping online, Lowe suggests, "Never pay by direct bank deposit, money transfers or digital currencies such as Bitcoin.

"You should pay by PayPal or credit card. You may want to keep a second credit card with a low credit limit just for online shopping."

ANZ launches digital home loan

This week saw ANZ launch a new digital home loan through its ANZ Plus brand.

What exactly is a 'digital' home loan?

It's a mortgage where everything is arranged online.

The ANZ Plus Home Loan Variable can be organised entirely through the ANZ Plus app including verifying your identity, having your home valued, and potentially receiving loan approval in a matter of minutes.

The ANZ Plus digital loan comes with a variable rate of 6.14%.

The catch?

The mortgage will initially only be available to refinancing home owners in metro New South Wales and Victoria.

Queensland doubles First Home Owner Grant

Queensland has just doubled its First Home Owner Grant (FHOG) from $15,000 to $30,000 for eligible buyers.

The increase means first-time buyers in Queensland now have triple the grants available as their counterparts in New South Wales and Victoria.

The doubling of the QLD FHOG is expected to encourage around 12,000 buyers to jump into their first home by 30 June 2025, when the boost is set to expire.

The additional $15,000 is being funded by coal royalties.

QLD Premier Annastacia Palaszczuk said, "I hope this puts the dream of owning a first home within reach of more Queenslanders.

"We can only do this because we're making sure coal companies pay their fair share."

The FHOG in QLD is available to those buying or building a new home (including granny flats and relocated homes) valued at less than $750,000.

The QLD FHOG boost comes as St George, Bank of Melbourne and BankSA have signed up to the Home Guarantee Scheme, which lets home buyers get into the market with as little as 2% deposit and zero lender's mortgage insurance.

ASX announces CHESS replacement...again

The on again/off again task of replacing CHESS, the Australian Stock Exchange's ageing system that manages the settlement of share transactions and underpins a functioning sharemarket, has taken a new turn.

After scrapping a blockchain-based option in 2022, the ASX announced this week that it will partner with India-based TATA Consultancy Services (TCS) for a software-driven CHESS replacement.

Similar TCS software is already in use in Finland, South Africa and New Zealand, and is currently being introduced in Canada.

But don't expect to farewell CHESS any time soon.

The ASX is forecasting the project may not be fully implemented until 2029.

Pay $135 for a 50 cent coin? The buyers are lining up

Keen coin spotters may be keeping a watchful eye for the first $1 coins bearing King Charles's image, but serious collectors lined up outside the Royal Australian Mint in Canberra this week, eager to pay up to $135 for a 50 cent piece.

That's over 270 times the coin's face value.

Of course, it's no ordinary coin.

One side of the silver proof coin features six images of The Queen - the first dating back to the portrait that appeared on pre-decimal coins from 1953 to 1965.

For the less well-heeled, the same coin is available in cupronickel (the nickel/copper combination used for standard 50 cent coins) at the more affordable price of $15.

Neither of the newly minted coins will be in circulation.

A spokesperson for The Mint says it's common for numismatists (coin collectors) to queue at the Mint in Canberra when a new coin is released.

Ironically, as our use of cash has declined, interest in coin collecting has skyrocketed, with the global market valued at around $US8.7 billion ($13 billion).

Her mum, Jackie, had been an independent, active, hard-working general practitioner. Adele assumed she was financially secure, as she owned her house. Adele respected her mum's privacy and rarely had a conversation with her about her finances.

But Jackie started to make comments about bills and appeared stressed. Adele was shocked to discover that Jackie owed $250,000 and had a stack of unpaid bills. What's more, Jackie didn't understand how she got into debt.

It took Adele a while to find out where the money went.

Jackie's bank accounts were a mess. Years ago, she had given one of Adele's siblings $300,000 when his marriage broke down to help him buy a property. Although he promised to pay it back, 
he never did.

Jackie is a generous and social woman who likes to help. But she lives on her own and feels lonely.

Be wary of new people around your loved ones

Jackie had mentioned a mystery man but was tight-lipped on details.

Adele found credit card statements for men's clothing and other expenses. Jackie had been handing over cash to him, too.

Jackie faced another hurdle that wasn't apparent, even to her family: cognitive decline.

This makes ageing parents particularly vulnerable to fraud as they can't assess risks like they used to.

Adele wishes she had been more on top of her mother's issues, but working full-time while raising three teenage kids made this hard.

She worked out a strategy to keep her mum afloat and stop her from spending so much: she moved Jackie into a small, affordable apartment and rented out her house to pay the interest on the debt.

She drip-feeds $100 at a time to her mother so she can keep tabs on her spending. Jackie constantly calls and asks for money, so it isn't easy.

The debt means that Jackie isn't able to pay for long-term aged care as she had once planned.

Watch out for unscrupulous charities

Keeping abreast of what is happening to your parents as they age makes sense for your own finances, too, because you may have to bail them out.

But it can be tricky. Parents are good at papering over any difficulties and may not want to talk about them either because they are embarrassed, or they love their abuser, or they may even fear losing their independence. They may also feel responsible for any of their children who may be experiencing financial distress.

Some parents are outraged - and sometimes suspicious - when their children want to know about their money.

When my own mum went into aged care, I discovered she had signed up for regular contributions to more than 30 charities. She was a kind woman and she loved animals and children. She gave money to her local church every Sunday. I do believe she was on a list targeted by charities.

I didn't go through her bank accounts or have a conversation about where her money went. She was reluctant to talk, stubborn and evasive. She didn't talk about money. The only sign was a lot of material about guide dogs and the RSPCA in her piles of mail.

But what I found worrying was that she had been pressured into giving her banking details to charities so they could take regular amounts from her account.

She was a part-pensioner, but the donations were probably more than what she spent on most expenses, except for strata fees.

When I did go through her mail after she moved into aged care, I found letters from well-established charities requesting she bequeath her estate to them when she died.

There are legal disputes when shocked families discover their parents have left their estate to one or more charities.

Safeguard their assets

Ageing parents need a system that protects them from fraudsters and organised crime. What is not so easy is keeping them safe from family members who are ripping them off.

Estate-planning measures, such as a durable power of attorney and an enduring guardianship, with trusted people can help protect their assets.

It is worth talking to your parents about the latest scams and imposters to keep them up to date. The Scamwatch website, run by the ACCC's National Anti-Scam Centre, urges people to stop and think before giving out money or personal information.

Additionally, ask your parents to consider whether a message or phone call could be fake.

If it feels wrong or suspicious, it is important to act quickly. This can be frustrating, as it can be time-consuming to get through to a financial institution. Also report incidents to Scamwatch.

Complex passwords and two-factor authentication can help protect them from having their savings wiped out.

How the vulnerable are targeted

In 2022, people aged 65 and older made the most reports to Scamwatch (49,163) and reported the highest losses ($120.7 million).

What's more, losses reported by women increased by 76.5% in 2022.

Older people are targeted by the same sorts of scams as the general population, but some scams are aimed specifically at them.

1. Tech support

When an imposter from 'tech support' calls with a fabricated story about a computer virus, or claims that the elderly person has been hacked, it is often a trick to get the person to hand over remote access to their device or computer.

According to Scamwatch, the average remote-access scam victim is likely to be a woman aged 65 or older 
living in NSW. She will usually receive a phone call while at home and be scared or conned into providing remote access to her device.

Frequently, the call comes after a legitimate enquiry the victim has made about problems with, say, an NBN connection. Once the scammer has accessed their device, they may get into their bank account and transfer money out.

Reported losses from remote-access scams were $229 million in 2022.

2. Home maintenance 

My 92-year-old aunt, who lives in a retirement village, has recently been targeted by a series of men wanting to check her showerhead to see if it is water efficient. She doesn't believe their spiel and won't let them into her small unit.

Scams generally involve promoting goods and services that are of poor quality or never turn up. Scammers may try to sell tree trimming or roofing services. They then bill for additional work that was not agreed to. They may also pretend to conduct a survey so they can get a person's personal details.

3. Rebates

Another common scam is an email, call or text promising a refund or rebate from the government, bank or another well-known company.

4. Inheritances

The false promise of an inheritance can trick people into parting with their money or sharing their bank or credit card details.

5. Prizes and lottery 

These scams operate by asking people to pay a fee to claim their prize or winnings from a competition or lottery they never entered.

6. Drug carriers

Older people are being tricked into acting as drug mules as a strategy to recover their losses from classic investment and inheritance scams, according to the Australian Federal Police and Australian Border Force.

"Criminal syndicates, by their very nature, exploit vulnerable communities and will undertake whatever tactics necessary to import drugs into our country," says AFP Commander Kate Ferry.

She says the victims of these online scams were often elderly and under significant financial hardship when they committed the crime.

"These criminals prey on the vulnerable and, at times, naive, and further victimise them by banking on the fact that they will do whatever it takes to recover their funds. The consequences for these victims can be severe, including lengthy terms of imprisonment."

7. Dating and romance

Lonely older people are perfect targets for romantic scams, often through dating websites, apps or social media. Pretending to be in love, the fraudsters use emotional triggers to ask for money, 
gifts or personal details.

Despite this, more than 2.6 million Australians use online dating and a study by Monash University estimates that by 2040 it will be our go-to way of meeting a life partner.

Online dating has plenty of success stories. A survey by the Australian Institute of Criminology (AIC) found 12% of respondents had been in a committed relationship with someone they met online, a figure that climbs to 50% of millennials and LGBTQ+ respondents.

Nonetheless, connecting with a stranger carries risks. Among younger online daters, unwanted attention from potential suitors can be a more pressing concern than losing money to scammers.

Blessica, 29, who prefers to use only her first name, says: "One of the downsides [of online dating] is when you match with someone and they hunt you down on social media, and start messaging you on Instagram instead of Tinder. It's crossing a boundary that feels uncomfortable. I have quite a unique name, so it's easy to find me. I don't find it too threatening - more annoying, and some people can be very persistent.

"You can always set your [social media] profile to private, but having your Instagram linked can help people get a better feel for who you are, so it's a toss up."

This type of unwanted attention can extend to online sexual harassment and cyberstalking. It's known as technology-facilitated sexual violence (TFSV), and the AIC says it's been experienced by as many as three in four online daters.

It's not love, actually

All age groups encounter romance scams (see chart). The over-55s, and in particular over-65s, tend to take the biggest financial hit. It's a trend seen internationally and, according to Crimestoppers, scammers tend to target older people who are more likely to have the wealth they are chasing.

Men are just as likely as women to experience romantic fraud, though the losses are far bigger among women. Scamwatch data shows women lost more than $27 million to romance scams in 2022, almost double the $13.6 million lost by men.

While it's easy to blame dating apps like Tinder or Bumble for romance fraud, social media provides rich pickings for cybercrooks. Last year, Australians lost almost $16 million to romance frauds that originated on social media, double the $8 million lost to scams through dating apps.

Crimestoppers says scammers target people on social media by taking advantage of emotional triggers such as the mention of divorce or loss of a lifelong partner.

It's a cue not to reveal too much about your personal life on the likes of Instagram and Facebook, and to maintain high privacy settings.

Playing the long game

A few red flags can indicate your romance could end in a rip off. "Love bombing" - when a person rapidly declares their love for you - is one to be aware of.

However, Chris Goldsmid, commander of Cybercrime Operations with the Australian Federal Police, says criminals will invest a significant amount of time - sometimes years - building what seems to be a legitimate relationship with their victim.

"They will express their love for the victim and in some cases promise marriage but will often have a complicated story about why they cannot meet in person."

Once they've established trust, cybercrooks start to test the waters with small requests for money. A whole library of heart-tugging excuses may be wheeled out, but if the victim pays up, the requests keep coming - and the sums grow bigger as the scammer gains confidence.

Rom-cons recruit mules

Romance scams aren't just about losing money. A national anti-money laundering crackdown in December 2022 identified 15 romance scam victims who were being used as money mules. This is where the person you've met online asks you to transfer money on their behalf.

"The criminal will ask the victim to set up a new bank account, or will transfer money into their existing account, with a request to forward the funds offshore to people claimed to be [the scammer's] friends, family or businesses," says Goldsmid.

Transferring money on behalf of someone else may seem relatively harmless. However, the money is usually the proceeds of crime such as drug sales, and it can carry jail terms of up to 25 years. 
Goldsmid says that romance scams are a common method for criminals to recruit money mules, and it's not always obvious that money laundering is involved.

"People should question why someone needs to use their bank account to transfer money offshore, rather than doing it themselves," he says.

More to lose than your money

Losing money to someone you believed was a romantic partner is bad enough. But the damage bill can go higher.

In a survey of people who use online dating apps, the AIC found one in eight people has been approached with requests that sexually exploit their children. It says men are almost twice as likely to receive these types of requests as women.

Attorney-General Mark Dreyfus says the survey's findings are deeply alarming. "We need to see developers adopt safety-by-design principles, so platforms are preventing harm in the first place."

Dating platforms are taking steps to improve user safety. In January 2023, Match Group, which owns several popular dating apps including Tinder, Hinge and Plenty of Fish, rolled out a public awareness campaign in Australia. App users received tips on dodgy behaviours to watch out for, plus help to identify potential scams.

It follows the introduction of new app features including selfie verification and pop-up messages with safety tips if certain language is detected in conversations between users.

Buddy Loomis, senior director of law enforcement operations and investigations at Match Group, is a former detective and special agent.

"I know firsthand how scammers lure unsuspecting individuals into giving personal information and ultimately money," she says.

She believes leveraging technology and resources helps users make safer online connections. That said, it is still very much a user-beware environment.

Match Group offers several key tips for safer online dating:
• Never send money to someone you've never met in person. Not for any reason. Ever.
• Stay on the app as long as possible. Scammers will attempt to get you onto another platform quickly. Take it as a warning sign if your match wants to move platforms, and still doesn't want to meet in person.
• Use the tools in your dating app. Verify your profile with photo verification and look out for the verification check on your matches to help confirm they are the person in their profile pictures. 
Research by US anthropologist Helen Fisher has found that falling in love floods our brains with the feelgood hormone dopamine. That same overload of dopamine can also lead to poor decision-making.

So, if you're unsure about requests being made by someone you've met online, talk to a friend or family member.

Without any emotional connection (or dopamine hit), they may spot the warning signs that you're in the crosshairs of a scammer.

When online lovers meet in real life

Inviting into your life a person who you've only met online can mean not really seeing their true personality until you're heavily invested in the relationship.

Two years ago, divorcee Roxanne*, 45, met Bill* through a dating app. The relationship moved swiftly, and he suggested they share a place together with a view to buying a home if all went well.

Roxanne's retired parents made their investment property available for the couple rent-free while they saved a deposit.

After moving in together, Bill discouraged Roxanne from seeing friends and she became increasingly isolated.

The couple started looking at apartments listed for sale on the NSW Central Coast. Bill made offers on quite a few but always claimed he was knocked back.

Finally, Roxanne contacted an agent herself to see if Bill's latest offer on a unit had been accepted. She was told Bill hadn't made any offer at all. Phone calls to several other property agents confirmed they'd never heard from Bill.

When Roxanne confronted Bill, he said nothing - just packed his bags and left.

"It was a wake-up call," says Roxanne. "He had 18 months of living rent-free at my parents' expense, and I'd lost touch with friends who would have alerted me to Bill's lies and controlling behaviour."

*Not their real names

Reader question

Dear Paul,

As an elderly full-time carer looking after an equally elderly partner with Parkinson's and dementia, the biggest worry I have is that he will be scammed.

My partner is stubborn and insists on having his Amex card. Today he gets an SMS on his mobile phone advising him that $637.85 has been charged to his Amex card. I verbally told him it is a scam and to delete the SMS.

He will not. He rings his bank.

Meanwhile, even though I have full power of attorney, I am helpless.

How do I protect my husband, apart from just cancelling all his cards?

I am old and exhausted, and these scammers are relentless in trying to steal our hard-earned savings. Every day they try something new. - Mrs Pillay

Paul's response

Mrs Pillay, this is a powerful message and I thank you for getting in touch. Your situation resonates deeply with me and I know it will for all Money readers.

How do we cope when either we, our partner or a family member, age and start to lose past money skills?

It is not only credit cards, but also self-managed super funds, shares, property, money at the bank and so on.

To be frank, the issue of credit cards such as Amex is not one I had considered.

The simple-sounding answer is, of course, to cancel it.

But this is not simple at all inside a relationship. Like a driving licence, control of our money gives us something we deeply value, our independence.

I had a couple of conversations with Amex, and like most credit card providers they have invested heavily in scam detection.

Amex tells me: "If an American Express card member becomes a victim of fraud, they won't be held liable for any fraudulent charges."

This is great, but does not really address the bigger issue. It may also be spending on items that you simply do not need.

As you have power of attorney, you could reduce the limit on the card. This would minimise financial risks.

Then we come to the tough part of your question. I have been pondering this for days.

How do you gently and lovingly help your partner by taking away things like credit cards? Here I found Dementia Australia very helpful. It has a significant amount of advice on its website, or you can phone 1800 100 500.

What is clear is that you are not alone: 472,000 Australians live with dementia and it impacts hugely on the 1.6 million people involved in their care.

I found the words written by carers such as yourself really valuable.

One lady is in exactly the same situation as you. Cancelling things like credit cards caused significant tension between her and her partner. Her solution was for the credit cards to be "lost".

I am not suggesting this, though it was a practical solution.

But I would suggest a discussion with Amex about a reduced limit.

If you would like, I can get back in touch with Amex and have one of their team call you. I am also keen on you having a conversation with Dementia Australia. With hundreds of thousands of people impacted by dementia, it deals with the issues you face, such as credit cards, every day.

Your question has caused me to become far more aware of the emotional complexity of gradually taking control of a loved one's affairs.

About 1 million people are predicted to be impacted by dementia in the coming years and personal finances are going to be a major issue. I am pretty sure there are no easy solutions, but in the next issue I'll write an article about dealing with money as we age.

My thoughts are with you, as are my best wishes.

It's great to learn that credit card fraud has fallen dramatically in recent years. Data from the Australian Payments Network shows that in the 12 months ending  June 30, 2020 fraud dropped 15%, reflecting industry efforts to make cards safer.

Even so, there's no room for complacency, and fraud is something we all need to take seriously. Here are seven simple ways to avoid becoming a victim of card scams.

1. Keep your card safe

Credit cards are increasingly becoming contactless, making it critical to store your card in a safe place. If your card falls into the wrong hands, it's easy to rack up plenty of purchases below $100 - possibly before you've even noticed the card is missing.

Regularly check you have your credit card on you, especially while you're out and about.

2. Be mindful of mailbox security

Thieves can - and do - raid letterboxes, looking for new or replacement cards sent through the mail. It makes sense to secure your mailbox with a padlock and empty it regularly, especially if the bank has notified you that a card is on the way.

3. Shred paper statements

As crazy as it may sound, crooks have been known to go bin-diving for discarded credit card statements. Armed with your account details, they can make purchases where a signature isn't required - either over the phone or online.

Opting to receive digital card statements can eliminate this problem. If you print statements, shred the paperwork before sending it to the recycle bin.

4. Don't respond to random requests for card details

Always be suspicious of unsolicited emails, phone calls or text messages. Never click on links within emails, especially if it's from an unknown source, and don't be tricked into handing out your card details to strangers.

5. Stick with trusted websites

When you're shopping online, stick to websites you know and trust. Only provide card details on secure sites - those that display a closed padlock or key icon next to the website address.

If you're unsure about a website, check out a few Google reviews. They could show if you're dealing with a shonky site.

6. Don't hand your card over

Card skimming has declined markedly in recent years, but it still accounts for $14 million in losses annually. Skimming occurs when your card is read by an illegal device that looks similar to a legitimate card reader, or if you use your card at an ATM that crooks have tampered with. By skimming the card, crims can download your account details and use these to rack up purchases in your name.

Protect yourself by only handling the card yourself, or at least keep it in sight when paying for purchases. Stick to ATMs in busy, well-lit locations where thieves are less likely to tamper with the machine.

7. Check your card activity regularly

Make a point of checking your card transactions regularly, and review statements thoroughly.

"Card not present" (CNP) fraud, which happens when your card details are stolen and used to make online purchases, accounts for 88% of all card fraud. But you may only become aware of these transactions by checking your account activity.

If you come across any suspicious transactions, contact your card issuer immediately.

Consumers who have taken steps to protect their card are not liable for fraudulent transactions. In cases where fraud has occurred, the card issuer will reimburse you for the transaction, cancel your card and issue a new one. It may mean the inconvenience of being without your card for a week or two, but it prevents a minor fraud becoming a major hassle.

Fraudsters are posing as agents from superannuation authorities in an attempt to rip-off unsuspecting superannuation members.

By midday on March 26, the Australian Competition and Consumer Commission had received 19 Scamwatch reports from concerned members of the public who had been contacted by people purporting to be from various fake superannuation authorities, offering to help unaware superannuation members ensure they aren't 'locked out of their account by the new rules'.

An ACCC spokesperson told Financial Standard the scams have increased since the government announced Australians suffering financial stress as a result of the economic impacts of COVID-19 could access up to $10,000 of their superannuation balance this year, and a further $10,000 in the next financial year.

The ACCC said almost all the reports it has received were about cold calls, with scammers claiming to be from various authorities and bodies including the "National Review Team", "Advisory Committee", "Superannuation Compliance", and "National Superannuation Board".

An ACCC spokesperson said "scammers have used a variety of excuses to request information about superannuation accounts", including ensuring the person is not locked out of their account "by the new rules", checking whether the person's superannuation account is eligible for various benefits or deals, and offering to help the person access the money in their superannuation.

One superannuation member the scammers would not have hoped to answer their unsolicited calls is Argurion Finance Group principal Chris Craggs.

Craggs told Financial Standard about how a scammer attempted to steal his superannuation, completely unaware of the fact Craggs was a financial planner.

"He started off by saying 'I want to discuss how we can help you gain access to superannuation'. So straight off the bat, no messing around," Craggs said.

Craggs said the thought forefront in his mind was how unethical the practice of scamming ordinary Australians out of their superannuation really is.

"I'm sitting there thinking, 'You people are just randomly calling people', because there's no way anybody who looked me up on Google would go, 'This guy would be a good mark.'"

Craggs asked the scammer for his AFSL number.

"He literally could not repeat back AFSL to me," Craggs said.

"I said do you understand the anti-hawking provisions? Nothing. And I went, 'Mate what you're doing is illegal. You're not allowed to do this'.

"Forget about legalities, this is not ethical what they're doing."

An ensuing social media post about the encounter may end up saving the super of many Australians, after it led the Australian Tax Office to get in touch.

"I've already had the ATO ring me today [Thursday] and say 'Please give us as many details as you can,'" Craggs said.

"Hats off to the ATO."

Earlier this week Intrust Super and the Australian Institute of Superannuation Trustees both warned superannuation members of the dangers posed by scammers who were attempting to use the government's early access initiative as a way to swindle Aussies out of their retirement savings.

This article was first published by Financial Standard

Since January this year, the ATO has reported over 40,000 cases of scammers impersonating the government agency and raking in just over a million dollars to date from unsuspecting victims.

The elaborate scam starts with a phone call, email or SMS that looks and sounds like the real deal. Using new phone technology called 'spoofing', for example, a legitimate ATO phone number is displayed when the call is actually coming from scammers paid to impersonate ATO staff.

But there are telltale signs that the call is not geniune. The tax office will not:

1. Send you an email or SMS asking you to click on a link directing you to a login page.

2. Threaten individuals with immediate arrest, jail or deportation.

3. Request payment via iTunes or Google Play cards, pre-paid Visa cards or bitcoin.

4. Request a fee to release a tax refund owed to you.

These unusual requests are enough to set off alarm bells but what if the scammer asks for payment through bank transfer? That's when the deception often succeeds.

As far as the scammers are concerned, the operation is a success even if it only deceives a small proportion of the population. Besides spoofing, scammers use "robocall" technology to set up pre-recorded phone calls to thousands of Australians every day. So many people fell for it that the ATO was prompted to issue a warning early this month.

Here are their top tips to protect yourself from scammers.

1. Know your tax affairs. Contact your tax agent or log into myGov to check your tax affairs.

2. Only give your personal information to people you trust and try not to share it on social media.

3. If you are unsure about whether a call, SMS or email is genuine, don't reply. Call the ATO's dedicated scam reporting line on 1800 008 540 to verify.

4. Get to know legitimate ways to make payments - scammers may use threatening tactics to trick their victims into paying false debts through pre-paid gift cards or by sending money to non-ATO bank accounts. To check that a payment method is legitimate, visit gov.au/howtopay.

5. Tell your family and friends about this type of scam. If you or someone you know has fallen victim to a tax-related scam, call the tax office as soon as you can.

Scammers come up with new tricks once enough people are warned about spoofing and auto-messages so it's important to stay well-informed and visit ato.gov.au/scams to verify or report a scam.

Websites touting "buy a shipping container" have generated considerable interest among investors despite a number of authorities, including Canada's financial market regulator and the West Australian government, issuing warnings about some of these schemes.

Even without the official cautions, the deals offered on shipping containers is a textbook example of how some basic online research should set the alarm bells ringing.

How it works

One of the most prominent providers of shipping container investments is the Hong Kong-registered company Pacific Tycoon.

Under its sale and leaseback arrangement, an investor pays Pacific Tycoon $US4100 ($5540) to buy a container, which is then leased back to the company and sub-let to the shipping industry.

Australian investors can select a fixed-lease option with promised annual returns of 12% plus insurance cover for lost or damaged containers. After five years investors can receive their initial purchase price back.

On the face of it, this deal ticks a lot of boxes. The problem is that the promise of high returns coupled with low risk defies one of the fundamental rules of investing - the risk/reward trade-off, which sees high returns going hand in hand with increased risk.

More worryingly, the West Australian government, on its ScamNet website, names Pacific Tycoon as "one example of an alleged sea container leasing Ponzi scheme".

Warning signs

In a Ponzi scheme, a dodgy operator pays returns to investors out of money chipped in by new investors rather than from legitimate profits.

Unless more investors continually come on board, it becomes harder for the operator to keep up regular payments, and the first time the hapless investor may recognise they've been scammed is when the payments fail to materialise.

Ponzi schemes are illegal in Australia, but some container schemes are not based in Australia. This alone should raise a red flag.

If anything goes wrong - for example, if the scheme turns out to be a web-based fraud by overseas criminals - authorities in Australia may not be able to track down either the masterminds or your money. Put simply, investors are on their own. When Money tried to contact the Sydney phone number listed on the Pacific Tycoon website (there is no street address), all we got was a recorded message.

So does the deal stack up? An important point to note is that Pacific Tycoon is selling containers, which are a physical asset rather than a financial product, so it is not required to provide a product disclosure document under Australian law.

This being the case, investors need to do plenty of homework before handing over any cash, and some basic online searches reveal why it's worth being highly sceptical about what's on offer.

Check the numbers

To begin with, those 12% annual returns should raise eyebrows.

The Pacific Tycoon website justifies the high return, stating "demand for containers has historically outweighed the supply" and there is "massive demand" and "restricted supply".

However, the shipping container industry is highly cyclical and has been plagued by excess capacity since the GFC of 2008-09. According to one industry report, more than 1.5 million TEUs (the industry term for the capacity of a 20-foot container) is sitting idle.

The collapse of South Korea's Hanjin Shipping, the world's seventh-largest container carrier, in September 2016 speaks volumes about the state of the market, and it's entirely at odds with the optimistic view promoted by Pacific Tycoon.

A depreciating asset

But wait, there's more. Pacific Tycoon's website claims that "much like the rent-and-earn model on a property investment, your capital is preserved in the physical value of your container".

Comparing a shipping container to a bricks and mortar property is drawing a very long bow indeed.

Property has a habit of rising in value over time. Shipping containers lead a tough life both at sea and on land.

They get pretty bashed around and, according to International Container Insurance, a new shipping container has a life expectancy of 20 years, though with no maintenance and frequent use (needed to earn strong returns) this life span can drop by as much as 14 years.

Closer to home, the Australian Tax Office sets a (prime cost) depreciation rate of 15% annually for shipping containers, so after five years your container will have lost 75% of its value on paper at least.

It raises the question of how Pacific Tycoon can afford to return an investor's upfront capital after five years when the container is likely to have deteriorated and fallen in value?

Consider reliable alternatives

Another factor to consider is that neither Pacific Tycoon nor any other shipping container investment firm is listed as a member of the Institute of International Container Lessors.

This seems odd given that Pacific Tycoon claims to be "a major player" in the container rental and investment industry.

The bottom line is that there appear to be plenty of questionable aspects to shipping container investment schemes.

If you really have a hankering to add shipping containers to your portfolio, consider buying shares in a reputable Australian company such as Toll Holdings, which operates port and maritime services. It could save you from a sea of worry if a shipping container investment scheme turns out to be a scam.

Five things to ask before investing

Be sure to ask these questions before handing over any money to invest in shipping containers:

1. Is the business registered with the investment watchdog ASIC? If it's not, you may not be protected by Australian law.
2. How long has the company been around?
3. Have you spoken to a financial adviser or another independent expert about the proposal?
4. Is the investment provider able to give you contact details of real clients who have made money using this method?
5. Can you afford to lose money invested in this scheme? Source: Western Australia Department of Commerce