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Investment scams are increasingly difficult to spot. Scammers are sophisticated and anyone can be a victim. Understanding how an investment scam works can help you avoid losing money.
How investment scams work
According to the National Anti-Scam Centre, Australians lost more than $837 million to investment scams in 2025.
Scammers are sophisticated. They use professional-looking websites, social media, advertising and AI technology to make scams appear genuine.
With an investment scam, the investment product does not exist, and most likely the person selling it to you is not who they say they are.
The scammer may pretend to represent a bank, investment company or financial services business. They may steal the identity of a genuine financial adviser or a well-known public figure.
They may create professional websites, brochures and advertisements to make the offer look legitimate. But once you trust them, and invest, your money will disappear.
Examples of fake investment products include:
Ultimately any type of financial product can be falsified and marketed to investors.
Artificial intelligence (AI) is super-charging online scam threats. In the 2025/26 financial year, ASIC removed more than 19,400 online scams – up 182% on the previous year – including fake websites, social media ads, phishing scams and cryptocurrency investment scams. Learn more about ASIC's work.
Fake AI-powered investment platforms
Some of today's most sophisticated investment scams use artificial intelligence (AI) to create an entire ecosystem that appears to support the investment opportunity.
Scammers will create brands, use unique phrases or words, and build an online footprint of supportive news articles, positive reviews, ads and websites that work together to deceive consumers. Examples of known brands include: ceravindo, impulse casholm, zephgain and murray capholm – to name a few.
The online footprint may include:
- fake advertisements
- fake reviews
- fake comparison websites
- fake investment platforms
- fake news articles
- fake celebrity endorsements
- AI-generated content
- deepfake videos
Together, these elements can make a scam appear convincing and trustworthy.
Potential investors may be taken from an ad on a well-known platform to a fake news article featuring celebrity endorsements and fabricated public comments supporting the investment.
Once victims have provided their details, scammers follow up with scripted phone calls, fake investment platforms and even small profit payments to build trust.
Often these ‘investment opportunities’ simply do not exist, and the money instead goes into the hands of overseas criminals, never to be recovered.
Can you get your money back
Getting any money back can be particularly difficult because many of these scams involve overseas criminal networks. Scammers often move money quickly between accounts or convert it to cryptocurrency to make it harder to trace.
How do scammers find you?
Investment scammers can come from anywhere, including:
- phone calls, emails and text messages offering exclusive investment opportunities or guaranteed returns.
- social media and online forums promoting investment tips, stock picks or cryptocurrency opportunities.
- online advertising that appears in search engines, websites, social media feeds and at the bottom of news articles.
- fake websites, reviews and comparison sites designed to make an investment look legitimate.
- dating apps where scammers build trust before introducing an investment opportunity.
- fake news articles, celebrity endorsements and videos used to promote scam investments.
No matter how you find an investment opportunity, take time to verify who you're dealing with before investing any money. Don’t just trust what you see.
Investment scammers often make first contact online. A professional website, positive reviews or a social media advertisement does not mean an investment is genuine. Always check before you invest.
What scammers might promise you
Investment scammers often sell the dream of easy money.
They may promise:
- high returns with little or no risk
- guaranteed profits
- exclusive investment opportunities
- insider information or stock tips
- early access to investments before other investors
- a trading platform or investment strategy that supposedly beats the market
- the ability to get rich quickly
Be wary of anyone who guarantees profits or pressures you to invest quickly. Legitimate investments always involve some level of risk.
How to spot an investment scam
Protect yourself from investment scams
Investment scams can look very convincing. It may be hard to tell if they're genuine investments or not.
Always use a licensed Australian financial services (AFS) provider when you invest. Check they are listed on AFCA's financial firm directory.
Before you invest your money, check basic facts about what you are investing in and who with. Follow the tips on check before you invest.
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.
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