Avoiding investment scams - the "binary options" scam

The Australian Securities and Investments Commission, through its SCAMwatch program, recently issued a warning about "binary options scams".


Scamwatch is warning investors to beware of binary trading scams that lure you in with the opportunity to make money through asset price movement. 

So far this year Australians have lost $3 million to these scammers.

Binary options involve predicting the movements of commodity, asset or index prices over a short time. Although they may be a legitimate financial product with many licenced firms trading in them, binary options are speculative, high risk products that are almost impossible to predict, even for professionals. There are groups of scammers who use binary options to steal your money.

These scammers use high-pressure sales tactics to try and convince you to invest in a trading account, making claims that the system is simple and high profits are guaranteed. If you agree, they direct you to a website with a login, account details and the trading platform. They put your money into the account and demonstrate a number of successful trades to encourage you to invest greater sums of money.

Once invested in the scheme, victims have reported that their money begins to disappear quickly. When they try to withdraw from the scheme, they find it impossible to get their money out of the account. The scammer does everything they can to keep the victim in the program but inevitably they stop taking the victim’s calls and, after a short period of time, it is common for the firms to disappear.

If you receive a phone call or see an online ad offering binary trading be very cautious. Do your research on the offer and the company. Do not agree to anything straight away.

How these scams work

• You receive a call out of the blue offering a secure investment with fast, high returns. You might also come across these scammers through social media or online ads.

• The scammers have professional looking websites to help them appear legitimate, usually with a login process, personalised account details and a trading platform.

• The victim invests money into the account and either the victim or an agent attempts to guess whether a particular commodity price will go up or down over short intervals.

• If you guess correctly, the account is credited with a small return. If you guess incorrectly, you lose the entire amount placed. The odds are stacked against you so it is very likely that you will lose over time.

• When you attempt to withdraw money, you find it almost impossible to do so and often lose the entire investment.

• Binary option scammers will also ask for personal information, claiming they need it to transfer money or that it is required for anti-money laundering purposes. Providing this information can leave you open to identity theft.

Protect yourself

• Consider any approach for investment offers carefully, especially if they are over the phone. Be suspicious of investment opportunities that promise a high return with little or no risk.

• Check ASIC’s list of companies you should not deal with. If the company that called you is on the list – do not deal with them. However, if they do not appear on the list it does not mean they are legitimate.

• Check ASIC’s professional registers to make sure the provider has an Australian Financial Services (AFS) License or is authorised by an AFS Licensee.

• Do not let anyone pressure you into making decisions about money or investments – get independent legal or financial advice.

• Carefully consider who you are giving personal information to, such as details from your passport or bank account, as this could be later used for identity theft.

• If you are looking to invest your best bet is to just say no and look for a safer, less risky investment.

(Source:  NHW Queensland Blog article posted 18 Sep 2016)

Missing Woman - Chermside West

Police are appealing for public assistance to help locate a woman missing from Chermside West.

Lara Scholz (pictured), 45-years-old, was last seen at a Birra Avenue address around 11pm on Saturday, September 17.

She is described as Caucasian in appearance with a solid build, around 165cm tall, with black hair, olive skin and blue eyes.

She was last seen wearing a black blouse and loose black pants and maybe travelling in a red 2014 Holden Barina with Queensland registration 777-VJM.

Police and family are concerned for her welfare as she has a medical condition.

Anyone who may have seen her is urged to contact police.

Anyone with information which could assist with this matter should contact Crime Stoppers anonymously via 1800 333 000 or crimestoppers.com.au 24hrs a day.




Crime Stoppers is a registered charity and community volunteer organisation working in partnership with the Queensland Police Service.

For all non-urgent police reporting or general police inquiries contact Policelink on 131 444 or Policelink.qld.gov.au 24hrs a day.

(Source: myPolice Queensland Police News)

Warning about hoax SMS messages that appear to be from your bank

The Australian Government Stay Smart Online Alert Service recently issued the below warning. While it refers specifically  to hoax SMS messages addressed to ANZ Bank customers, it is possible that the same type of hoax will be directed at customers of other financial institutions so everyone should be alert.

ANZ Bank warns of hoax SMS that attempts to scam customers: Alert Priority High
The ANZ Bank has issued a warning about a fake SMS message that urges customers to click on a link to stop the bank suspending their accounts.

The bank advised on social media that anyone who received the text should delete it immediately, and asked people who viewed its warning to share it with their family and friends.

On its security alerts and reporting fraud page, the ANZ Bank advises customers who have received hoax messages and clicked on any links, downloaded any attachments or responded to these messages with their banking details, to contact the ANZ helpdesk ‘immediately’.

The bank also extends the advice to customers that have noticed any unusual payments.

Clicking on a link in an unsolicited SMS message may expose a customer to malicious software such as viruses. This malware may capture your bank account details or other sensitive personal information, hand control of your smartphone to a remote attacker, or perform other unwanted activities.

Stay Smart Online recommends that if you are unsure whether an SMS message is legitimate, you verify the authenticity of the message with the organisation the message purports to be from. Always use contact details sourced from the business or government organisation’s legitimate website rather than any details included in the message itself.

If you do click on any suspicious links, immediately advise the relevant business and government organisation and monitor your accounts for unusual activity. If you believe your phone may be infected, you may choose to seek assistance from an independent technical expert.

Reporting cybercrimes
If your smartphone has been compromised, you can report the incident to the Australian Cybercrime Online Reporting Network (ACORN).

ACORN provides information on how to recognise and avoid common forms of cybercrime, such as hacking, online scams, online fraud, identity theft, attacks on computer systems and illegal or prohibited content, as well as offering advice to those who have fallen victim.

ACORN makes it easier and more convenient to report cybercrime to a law enforcement agency.

 (Source: Neighbourhood Watch Queensland blog)