Advisers investing time and money to protect clients from scammers

Advice firms are on the front line in combatting this nefarious activity that often targets seniors and has cost all Australians nearly $150 million this year alone.

Financial advisers are on the front line in the war against scammers as they allocate resources and give clients instructions on how to avoid this scourge that has cost Australians nearly $150 million in 2025.

This ScamWatch figure, of which Australians aged 55 plus accounted for 40 per cent, is a poignant reminder of the prevalence of this nefarious activity and why advisers are increasingly vigilant in their efforts to protect clients.

Kane Leersen (pictured) of Colac-based Regional Prosperity Financial Advice says many clients have shared experiences of receiving fraudulent calls from individuals posing as representatives of government agencies, financial institutions or superannuation providers. E-mail phishing is also a risk, with examples of altered BSB and account details resulting in money being transferred illegally.

“These scams often use urgent language and request sensitive information such as account details or identity documents,” he says. “We actively educate our clients on how to identify red flags, such as unexpected demands for payment or personal data, and encourage them to verify any suspicious communication directly with the relevant institution.”

Renato Manias of the Melbourne-based advice firm Wattle Partners says clients are constantly relating horror stories about how they have received e-mails, text messages and phone calls from scammers.

“They are getting a lot more sophisticated, and even younger, more tech-savvy financial planners are getting caught. I know from personal experience as I nearly lost $2,500 several weeks ago to an Australian Post scam. Only the fact I paid by credit card and not by debit card prevented the scam succeeding as the credit card issuer was able to reverse the $2,500 immediately.”

The client experiences of Leersen and Manias help explain why ASIC recently issued a “red alert” about high-pressure sales tactics, click-bait advertising and promises of unrealistic returns that encourage people to switch superannuation into risky investments. 

ASIC deputy chair Sarah Court says the start of a new financial year is often the trigger for people to check their super fund’s performance and urged consumers to be extra cautious. 

“When it comes to sales calls about super switching, there are some big red flags people should be alert to – being asked to make a quick decision is one of the most obvious.  Remember, a good deal won’t vanish overnight.

“The initial salespeople can be very persuasive, often the underlying schemes are complex or not made clear to the consumer, and it may be very difficult for even experienced investors to spot problems.  Once you start on the path it can be hard to get off.”

Court adds that these calls don’t have the hallmarks of a typical scam.

ASIC’s red flags

• Cold calls  
• High-pressure sales tactics
• The touting of free superannuation “health checks” and prizes (often via social media advertisements or websites)   
• Offers to find and consolidate “lost super” for free  
• The involvement of unlicensed people in the advice process  
• Predominant engagement over the phone with limited client contact with a financial adviser 
• Poor or no product disclosure 
• Promises of high or unrealistic returns 

“The caller will seemingly have your best interests at heart, and they say they want to help you find a better super product or locate lost super for free.  They may also involve referrals to financial advisers during the call to create a sense of comfort and legitimacy.

“Consumers should always ask questions about salespeople’s connections to funds, particularly in circumstances where a particular fund appears in the pitch, as there may be a commission arrangement. If you are unsure or are feeling pressured, just hang up.”

That’s advice that resonates with Leersen who says scam activity – it appears to disproportionately target older clients, particularly those aged 60-plus – often involves urgent language and requests for sensitive information such as account details or identity documents.

“We actively educate our clients on how to identify red flags, such as unexpected demands for payment or personal data, and encourage them to verify any suspicious communication directly with the relevant institution.

“We provide instruction and resources to help our clients stay safe from scammers. This includes regular communication through newsletters and targeted email campaigns – particularly for clients aged 65-plus – highlighting common scam tactics and offering practical steps to avoid them.”

Manias says Wattle has a warning list for clients covering several scenarios.

“For example, banks will never ask you to transfer money; beware texts, e-mails or phone calls asking for payment for something you were not expecting; and even if the correspondence seems legitimate, it can be cross-checked by contacting the provider directly.”

He adds that scammers are getting very sophisticated and that ASIC is playing catchup.

“But my main concern is the banks. Are they doing everything they can do protect their customers, and when things go wrong, do everything they can to recover the lost money? Certainly, UK banks have better customer protections in place and Australia should follow suit.”