Serious and organised criminals are using the Internet to provide false legitimacy in their attempts to target the retirement savings of Australians, the Australian Crime Commission (ACC) Board warned today. The ACC is urging Australians to protect themselves against the growing threat of serious and organised fraudulent investment scams.

Western Australia Police Commissioner Karl O'Callaghan said organised crime is attracted to the high levels of superannuation and retirement savings in Australia and people approaching retirement and looking for investment opportunities should be aware of these fraudulent scams.

Commissioner O’Callaghan said “The scams are typically based off-shore, and use highly sophisticated websites to trick investors into thinking the investment offers are legitimate. In many cases, criminal groups are making initial contact with potential victims through unsolicited cold calls.”

To tackle this growing threat, the ACC Board established a multi-agency task force that aims to disrupt fraudulent serious and organised investment scams and harden the Australian environment against this type of organised criminality.

Led by the ACC, the task force comprises of law enforcement, regulatory, and service delivery agencies across federal, state and territory government. Task force members include all ACC Board agencies, as well as the Australian Competition and Consumer Commission, Department of Broadband, Communications, the Digital Economy, the Department of Immigration and Citizenship, the Department of Human Services, and the Australian Transaction Reports and Analysis Centre.

Australian Securities and Investments Commission Acting Chairman, Belinda Gibson said these fraudulent investment scams are incredibly sophisticated and very difficult for even experienced investors to identify.

“Perpetrators of these fraudulent scams are skilled at using high-pressure sales tactics, both over the phone and via email, to persuade their victims to part with their money,” Ms Gibson said.

Based on initial indications, more than 2400 Australians have lost in excess of $93 million to these scams, but it is believed there is a high level of underreporting and the extent is far greater.

“I urge investors to be immediately wary if they are called at random by someone offering an investment opportunity overseas,” Ms Gibson said.