Peak body CEO calls on advisers to be alert to ‘extremely sophisticated’ scams

To coincide with the start of Scams Awareness Week, the SMSF Association head John Maroney said it is a timely reminder that there are some “extremely sophisticated” scams currently circulating that people must be alert to.

Mr Maroney himself was targeted by “ASAL Group” who claimed to be specialists in assisting people manage their SMSFs.

“It was a very slick approach,” he said.

“But the fact they claimed to be a subsidiary of a major financial institution, yet I had not heard of them, and promised returns of between 18-24 per cent just seemed too good to be true, and were two warning signs for me.

“I checked on the ASAL Group to quickly discover it was a scam, and then alerted ASIC. To any SMSFs who find themselves in a similar situation, please consult with your specialist adviser who will be able to verify whether the offer is genuine or not. And report the scam to ASIC – its website is very helpful in giving investors guidance about potential scams – to allow the regulator to inform the wider investing community.”

ASIC’s data on investment scams in 2020 totalled $328 million and 38 per cent of the $851 million lost to scams in Australia last year.

“We will endeavour to continue educating SMSF professionals, trustees, and self-directed investors on how best to safeguard their retirement savings,” Mr Maroney said.

“There are many different types of scams in circulation and our role is to raise awareness, encourage conversation and promote vigilance to limit those in the SMSF sector from becoming the next scam victim.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.