It is almost predictable that at around 6pm, just as you are about to sit down for dinner, you will get one of those pesky phone calls trying to sell you a great holiday, telling you how bad your current telephone provider is or how you can increase your wealth.  As you are generally hungry and tired, you will probably just terminate the call fairly promptly. However sometimes the person at the other end can be quite persuasive

And, accordingly to an article recently published in IFA Magazine, if you are:
  • a baby boomer (typically over 50)
  • male
  • a self funded retiree (SMSF owner)
  • a small business owner
  • highly educated, with high levels of financial literacy
you are quite likely to be targeted and tricked into an investment scam.  Even though this demographic, as the article notes, 'are people who would consider themselves too clever to be victim of a scam'!

These scams are highly sophisticated and the caller tries to legitimise the investment to you over a period of time, building trust with the victim to cloud their critical judgement.

So you don't become a victim, you should always ensure the company has a valid Australian Financial Services License (AFSL) - you can search this on the ASIC website.

Remember that, as nice as the person on the other side of the phone is, you have to be very sceptical.  If the investment really is that good why do they have to ring you to sell their scheme?  The old cliche applies - "If the investment sounds too good to be true then it probably is"!

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