ASIC warns of scammers impersonating Bunnings with fake investment bonds
If you've spotted what looks like an amazing investment opportunity from Bunnings recently, beware! The Australian Securities and Investments Commission (ASIC) has issued an urgent warning about scammers impersonating the retailer to promote fake “sustainability investment bonds”. These scammers claim that the investments will have suspiciously high returns (up to 9%) and are protected by the government, but this is entirely false.
The scam works by targeting people through fake websites and direct spam emails, posing as a responsible entity or broker. The website features Bunnings branding and hyperlinks that direct back to the retailer's genuine webpage, making it appear legitimate. However, Bunnings does not offer bonds or any other investment products. Legitimate bonds are traded through licensed financial institutions, not retailers.
To avoid falling victim to scams like this one, remember the three key steps: Stop. Check. Protect. When considering an investment opportunity:
- Stop and think before acting.
- Check if the investment is legitimate and if the person or entity offering it is licensed or authorised to do so.
- Protect yourself by acting quickly if something feels wrong: contact your bank to stop any transactions and report any suspicious activity to Scamwatch.
Investment basics: bonds
Broadly speaking, bonds are generally considered a safer investment compared to stocks, offering regular interest payments. They are issued by governments or corporations, and when held to maturity, they return the face value of the bond. However, it's important to be cautious of imposters offering fake bonds, as these scams are prevalent. Always research the investment thoroughly, and never give money or personal information to anyone if you're unsure.
If you're interested in investing in bonds, visit the Moneysmart website to learn more about the different types, including government bonds and corporate bonds. You can also check the investor alert list there to see if the company or entity offering the investment is legitimate.
Key takeaways
Scammers are becoming increasingly sophisticated, exploiting trusted brands to deceive potential investors. Remember, if an investment opportunity seems too good to be true, it probably is.
- Always research the investment and the person or entity offering it.
- Remember the three key steps: stop, check and protect.
- Visit ASIC's Moneysmart website to learn more about investing.
- Report any suspicious activity to Scamwatch.
Always prioritise your financial safety and security by being vigilant and taking the necessary steps to protect yourself from scams. To report a scam or find more information about scams, visit the National Anti-Scam Centre’s Scamwatch website at www.scamwatch.gov.au