Spring is finally here, and I hope you’re enjoying the warmer weather!
Today, I want to share an alarming trend that’s affecting investors both here in Australia and over in New Zealand.
Recent data reveals a concerning upswing in investment scams:
- Australians faced a record loss of $3.1 billion to scams in the previous year, an astonishing 80% increase from 2021.
- Across the Tasman, it’s estimated that 1 in every 5 Kiwis has been approached by potential scammers.
These aren’t just basic schemes; they range from crafty boiler room scams to enticing fake bond offers, and many more. What makes it even trickier is that a significant number of these scam operations are based overseas, complicating any efforts to recover lost funds.
A particularly heartbreaking incident in New Zealand saw an individual lose his entire life savings. Lured by a seemingly lucrative 13.5% annual return on a AAA-rated term deposit, it turned out to be nothing but a sham.
So, how can you safeguard your investments?
The golden rule is always to ensure you’re dealing with registered financial service providers. While returns on investments are essential considerations, the safety of the principal amount is paramount.
Remember, if an offer seems too good to be true, it probably is.