ASIC through their Money Smart publication have put together some great information on investment warnings. These safety checks are there to provide a reality check, and ensure investors are doing their due diligence before they place monies in investments.
- Company director fraud – How to tell if a company director is illegally using your investment for personal gain.
- Illegal managed investment schemes – It’s generally illegal to offer units in a managed investment unless it is registered with ASIC.
- Initial Coin Offerings (ICOs) – Find out the risks of investing in blockchain technology projects.
- Investment seminars – Don’t believe claims that attending an investment seminar will turn you into a millionaire in a few years.
- Investment trading software – Be wary of claims you can make lots of money using investment trading software programs.
- Land banking – This type of property investment has a number of risks. Find out what to check before investing.
- Sports betting systems – At best, sports betting software schemes are gambling. At worst, they are scams.
- Unexpected offers to buy your shares – These offers often try to buy your shares for much less than the current market price. You should be aware of some pitfalls if you get such an offer.
- Cryptocurrencies – We explain how digital currencies work and the risks you take buying, trading or investing in them.