The SMSF Professionals’ Association of Australia (SPAA) has welcomed the report into “Serious and Organised Investment Fraud in Australia”, saying it’s a timely reminder of the risks investors face from organised crime.
Graeme Colley, SPAA Director – Educational and Professional Standards, says: “This report by the Australian Crime Commission (ACC) and the Australian Institute of Criminology (AIC) not only outlines the risks investors face, but, significantly, suggests what investors should do to avoid being caught up in fraudulent schemes.
“With the Trio scam a recent memory, this report, which got valuable input from 12 other government agencies, estimates that organised fraud activity resulted in losses of $113 million between January 2007 and April 2012, and this figure is likely to be conservative.”
Colley says the check list for investors to avoid investment scams recommended by the report should be “compulsory reading for every investor”.
“It’s not rocket science. Indeed, what the report articulates in this regard is plain commonsense. But as we well know investors often fail to follow these steps.
“In particular, the need for investors to check a number of sources before investing to ensure the legitimacy of the investment, the need to always get independent financial advice before investing, and to ensure anyone selling an investment have a valid Australian Financial Services Licence are all simple procedures to follow to find out if an investment is on the level.
“In addition, investors need to diversify where they invest and be particularly wary about any overseas investment. The old adage, if it sounds too good to be true, then it probably is, is worth remembering.”
11 July 2012
