Investment Scams in Australia 2026 — The Fake Platforms Stealing Life Savings

Investment scams are the highest-loss scam category in Australia, accounting for the majority of total financial scam losses annually. Unlike small-scale phishing attacks that might steal hundreds of dollars, investment scam victims often lose their life savings — with individual losses commonly exceeding $100,000 and some cases exceeding $1 million.

The Pig Butchering Scam

The dominant investment scam structure in 2025-2026 is called "pig butchering" — referring to the criminal practice of fattening a victim before slaughtering them financially. It begins with an unsolicited contact on social media, a dating app, or a "wrong number" text. A relationship develops — romantic or friendly — over weeks or months of daily contact. Eventually, the other person mentions a fantastic investment opportunity they have been using. Victims are directed to a professional-looking investment platform where they make a small initial investment and watch it "grow" rapidly. They invest more. The platform shows impressive returns. Eventually, when they try to withdraw larger amounts, they are told they must pay a "tax" or "withdrawal fee" first. The platform then disappears along with all their funds.

Fake Term Deposit Scams

Criminals advertise fake high-interest term deposits through social media, comparison websites, and search engine ads — sometimes impersonating genuine Australian banks or using names that sound like established institutions. The deposits appear to earn attractive rates, statements show the balance growing, and the victim may even make small successful withdrawals to build trust. The scam is discovered only when a large withdrawal is attempted.

The Celebrity Endorsement Technique

AI-generated video and audio is used to create fake endorsements from Australian investors, entrepreneurs, and celebrities — people like Andrew Forrest have been particularly commonly impersonated. These fake endorsement videos are distributed through paid social media advertising and look convincingly real. No legitimate investment platform uses celebrity endorsement videos distributed through social media ads as its primary marketing channel.

How to Check If an Investment Is Legitimate

Check if the company is registered with ASIC at moneysmart.gov.au — all financial service providers operating in Australia must be licensed. Check ASIC's investor alert list for platforms already identified as scams. Research the company independently through Google, ASIC Connect, and the Australian Business Register. Only invest through platforms you have independently researched and that have verifiable physical addresses, real staff, and genuine regulatory registration. Never invest in platforms recommended by someone you met online, regardless of how well you feel you know them.

Recovering From an Investment Scam

If you have already lost money to an investment scam, act quickly. Contact your bank to report the fraud — some domestic transfers can be reversed, particularly if reported immediately. Contact the receiving bank's fraud team if you have the account details. Report to the ACCC at scamwatch.gov.au. For larger losses, contact the Australian Federal Police — they work with international law enforcement on significant investment fraud cases. Contact IDCARE if personal information was also exposed. While recovery is difficult, reporting is important — it helps authorities track these operations and protect other Australians.

Warning Signs Checklist

Before investing in any platform, verify: the company is licensed on ASIC's register; the platform has a genuine verifiable physical address; the team members are real people who can be independently verified on LinkedIn; there are no entries on ASIC's investor alert list; and the platform was not recommended by someone you met online or through a social media ad. If any of these checks fail, do not invest. IntrusionX can provide security awareness education for individuals and businesses on identifying and avoiding investment scams — contact us for a consultation.

The ASIC Investor Alert List

ASIC maintains a public investor alert list of companies and websites that ASIC has reason to believe are operating without a licence or are misleading investors. Check any investment platform you are considering against this list at moneysmart.gov.au/check-and-report/moneysmart-warning-list. ASIC also provides a free search of licensed financial services providers — before dealing with any investment platform, verify they hold an appropriate Australian Financial Services Licence. Unlicensed platforms operating in Australia are illegal, and investing with them provides no regulatory protection. If you are unsure about a specific investment opportunity, the ASIC information line on 1300 300 630 can provide guidance on whether a specific entity is licensed. IntrusionX provides security awareness education on financial scams for Melbourne businesses and individuals — contact us for a consultation.