If you’re considering investing in something everyone is talking about, do some checks first.
Some investments may be higher risk than you realise
Investing in something because it’s trending on social media or in the news can be risky. Before you put in money, take time to check the facts.
Good investments should match your financial goals. So, take the time to read our information on investments that might have a higher level of risk than you realise. This includes cryptocurrencies and foreign exchange (FX) trading.
Visit the Australian Securities and Investments Commission (ASIC) website to keep informed about investment scam alerts, including scams impersonating ASIC. The website also provides tips on how to use ASIC’s resources to help avoid scams.
Make informed investment decisions
Read our pages below to learn more about:
Sales tactics
Lead generation: If you’ve ever clicked on an advertisement, filled out a form on a comparison website, done an online quiz, or handed over your personal details in some other way, you may have unknowingly put yourself on a lead generation list.
Investment seminars: Some investment seminars can be fantastic – but be wary of invitations to events and seminars offering the financial secrets to make you rich.
Investment hype: Investment hype happens when an opportunity gets a lot of attention and excitement online or in the news. Learn how to spot – and avoid – hype.
High risk investments
Binary options: An ASIC review found that around 80% of retail clients lost money trading binary options.
Contracts for difference (CFDs): A CFD is effectively a bet on whether the value of the underlying asset is going to rise or fall in the future.
Forex trading: Foreign exchange trading attempts to make a profit by predicting the value of one currency compared to another.
Crypto assets: Most crypto are high-risk investments. The value of crypto is very volatile, often fluctuating by huge amounts within a short period.
Bills of exchange: Bills of exchange can look and sound similar to term deposits, but they do not have the same protections and carry a high risk of losing money.
Land banking: Land banking schemes are often unregulated and there's little protection if something goes wrong.
Schemes and fraud
Company director fraud: There are some common signs that may show something is not right with the company you've invested in – learn what to look for.
Insider trading: If you’re found guilty of insider trading, you may face up to 15 years in prison. Understand what it is and how to avoid it.
Pump and dump schemes: Pump and dump schemes – under various names and formats – have been around for as long as public investments. But social platforms and other online forums have given these schemes greater reach.
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