Superannuation scams
Scammers who want your super
An offer to help you get your superannuation money early might
seem like a great idea. But if you agree to it you could end up in
a lot of trouble. Accessing your super before age 55 (at the
earliest) is illegal except in very limited circumstances.
Here we explain how super scams operate so you can protect your
retirement savings.
How super scams operate
The scammers say they can withdraw your super or move it to a self-managed super fund (SMSF)
so you can pay off your debts or use the money for something you
really want.
Once your super has been withdrawn or transferred, the scammer
then takes a large commission or may even steal the entire
amount for themselves.
By agreeing to the scam, you risk losing your hard-earned
super savings. You may also unintentionally get caught up in tax
penalties as a result of taking your super early. The scammers may
even get you to sign false statements, exposing you to fines.
To find out more about when you can get hold of your super
money, see our page on getting your super.
There is another type of super scam where scammers steal your
identity and pretend to be you so they can transfer your super to a
fake SMSF that they can access. Read more about how to protect
yourself from this scam on the identity fraud webpage.
Who the scammers target
Promoters of illegal super scams often target people who are
struggling with debt, people who are unemployed and those from
non-English speaking backgrounds.
Case study: Kim's super is taken by a scammer
Kim was desperate to pay off her car loan and
credit card debt. She had $30,000 in her super fund and really
wanted to use that money now, not in years to come. She saw an ad
in her local paper saying she could get hold of her superannuation
money now and phoned the number.
Greg answered her call and said all she needed to do was sign
some papers to transfer the money into his self-managed super fund. Then Greg could
give Kim 90% of the $30,000 and he would only take 10% commission.
Kim thought this was a great idea so she signed the papers.
A few weeks later, Kim had still not received the $27,000 from
Greg. She thought this was strange but believed the money would
come soon. Then she got a call from the Australian Taxation Office
letting her know she was up for a big tax bill as she had accessed
her super.
She also got a call from an ASIC investigator who had received
complaints from other people in Greg's self-managed super fund who
had not received any of their money. The investigator told Kim it
was illegal to get hold of super funds before retirement and she
was questioned about her dealings with Greg.
The investigator sent her the real bank statements from Greg's
fund. Greg had withdrawn all her money and there was nothing
left.
The truth was that Greg had a gambling problem and ran the scam
to fund it. Greg was already bankrupt, so there
wasn't much hope that Kim would get her money back.
Warning signs of a super
scam
Promoters of illegal super schemes will try to get you to
believe that anyone can access their super with their help.
Be alert to these signs of a super scam:
- Advertisements promoting early access to super
- Offers to 'take control' of your super
- Offers of quick and easy ways to access or 'unlock' super
- Unlicensed operators - see ASIC Connect's Professional Registers or
APRA's Disqualification Register.
If you have been approached about accessing your super early,
report it to ASIC via the online complaint form or by
calling ASIC's Infoline on 1300 300 630. You can also report
it to the Australian Taxation Office by phoning 13 10 20.
Action ASIC has taken action
against super scams
To find out more about the actions ASIC has taken over early
release super schemes, see the following media releases:
When early release of super is
legal
Early release of super is legal only in very limited
circumstances: when you are experiencing financial hardship or on
'compassionate grounds'. For more information, see our getting
your super webpage.
Super is money for your retirement and not money
for now. The superannuation and
retirement section of our website sets out everything you need
to know about super.
Related links
Last updated: 31 Oct 2018
