You’re a smart person. So why might you still fall for a scam?

An investment scam seems like it should be easy to avoid.

People think it could never happen to them. They’d never click a dodgy link, fall in love with a stranger who has a hot tip, or share their bank details over the phone. Until they do.

In 2023, the ACCC learned that only 13% of scam victims ever formally report them.

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So when the news hits that investment scams cost Australians $837.7 million in 2025, and $45 million in just the first quarter of 2026, we can probably guess that it's just the tip of the iceberg.

Table of contents

Why don’t more people report being scammed?
How can you tell if you’re being scammed?
Why do people fall victim?
How to recognise an investment scam
What if you or someone you care about has been scammed?
Investing with Spaceship

Why don’t more people report being scammed?

Some people don’t know they’re being scammed, and others feel shame for being caught up in it.

How can you tell if you’re being scammed?

Investment scammers use a variety of tricks and they get smarter all the time.

They may use time pressure, the promise of guaranteed or very high investment returns, social proof such as fake reviews or celebrity endorsements, or they may invest time in building personal relationships with their targets and build these up slowly before money is ever mentioned.

Increasingly, they create fake investing experiences that look real, using features such as cloned websites, fake dashboards with real-looking returns, and copied contact details.

Investment scams tend to start online and may follow similar paths.

1. Unsolicited contact. Nobody goes looking to be scammed, so the scammer has to look for you.

They might add you to a group message on WhatsApp, Telegram, or Instagram, with a bunch of strangers. They might send you a message pretending to have a wrong number, but try to build the relationship from there. They might post ads on social media, including with celebrity endorsements.

2. Trust-building. Scammers use common patterns to build trust.

In romance scams, this can look like weeks or even months of conversation, building rapport and emotional engagement before money is even mentioned.

For fake platforms, this can look like slick dashboards that mimic a real broker’s branding and contact details.

Once they’ve built up enough trust with the target, the scammer can more easily trick them with their money.

3. Small wins. Scammers often let their victims see early progress or withdraw small amounts of money to help them build trust with their targets.

Once the target feels that the platform is credible and they can access their money easily, they may be more likely to invest more money.

4. Escalation. Once a target is hooked, they’re often lured with the promise of bigger gains, insider information, or time-limited opportunities.

5. Obstruction. When the target wants to withdraw their money, they’re met with sudden fees, taxes, costs of verification, or they get ghosted.

That’s when they realise they’ve been scammed and can have a fight on their hands to try to get the money back.

Why do people fall victim?

Research shows people don’t get scammed because they’re idiots.

And there’s no single profile of someone who’s more likely to get scammed over somebody else.

Here’s why smart people can still get tripped up.

People can tell what’s fake, but they can’t tell what’s real

Think of the iconic Louis Vuitton luggage with the brown colouring and the gold-coloured LV monogram. The obvious fakes have different initials entirely. But telling a good dupe from an authentic product can be pretty tricky.

Same goes with investment ads, according to CommBank research. People can spot the clear scams but they’re not as confident with picking real investment ads from fake ones.

30% of scam victims ignored their gut instinct

You know when you get a feeling, seemingly out of nowhere, that something or someone isn’t safe?

According to CommBank, 30% of scam victims felt that feeling but proceeded anyway, because the scam was designed to get them to override it.

Investing is emotional

The period between buying a lottery ticket and finding out whether you’ve won is one of the great feelings.

That same emotion is what investment scammers aim to produce in their targets. Hope and excitement feel good — but they’re common to legitimate investment opportunities too, which makes it tricky to use them as a sign on their own.

People don’t verify their investments

87% of CommBank’s research respondents didn’t perform any independent verification of their investments.

People simply don’t have that habit built in. Often, when people sought to verify their investments, it was already too late — it was because something had already gone wrong.

Scammers pick targets

Scammers use the tactics of traditional marketers, but they use them for their own gain instead of the customer’s.

People near retirement age are assumed to have bigger balances and so get targeted with retirement scams. People who are single or lonely are assumed to be susceptible to romance scams. Young people who trust finfluencers and live online may be targeted through social media and online content.

How to recognise an investment scam

So how can you protect yourself from being scammed?

There are five questions that can help.

1. Is the investment manager listed on ASIC's AFS licensee register?

Every investment platform, adviser, or fund manager that operates in Australia needs a licence. ASIC makes it quick and easy to look them up yourself on the ASIC register. If they're not on the list, it's a huge red flag.

2. Is the investment opportunity or manager listed on ASIC's Investor Alert List?

Unlicensed operators and websites that impersonate real, legitimate companies are on this list. It's also quick and easy to use. If they're on this list, it's a huge red flag. View ASIC's Investor Alert List.

3. Can you find contact details yourself?

A legitimate investment opportunity should have easily accessed contact details you can find yourself. Don't just trust the details they give you — search the company independently and see what you find. If you can't find any independent information about the investment opportunity, that's a huge red flag.

4. Are you feeling pressured to act now?

Legitimate investment opportunities will be available when you're ready to invest on your terms, not theirs. If somebody is promising you fast returns, or threatening you with negative returns unless you act, this can be a good sign that something's not right.

5. What do your friends, family, or a registered financial professional say?

Some things only seem obvious in hindsight. Sharing your plans or thoughts with a trusted human such as a partner, a mate, or a licensed financial professional can help you spot gaps you can't see yourself.

What if you or someone you care about has been scammed?

First, give yourself a break. Humans are going to human, especially in times of heightened cost of living pressures and economic uncertainty. Plus, scammers are getting smarter all the time.

Here are some steps to consider taking.

Contact your bank immediately. Visit your bank’s website or app to find their contact details to report the scam. Banks have dedicated teams that may be able to help, especially if you spot the scam and tell them about it early.
Report it. The Australian Government has a website set up for reporting scams, as well as advice, called Scamwatch. It has advice about what to do if you’ve been scammed, including when to make a police report. Visit Scamwatch.
Get support. IDCARE is an Australian organisation that can help you if you’ve been the victim of a cyberscam or an identification breach. Visit IDCARE.
Stay on your guard. Scam victims are often retargeted by people who pose as professionals such as lawyers, regulators, or ‘recovery agents’ who can return your money for a fee.

Investing with Spaceship

When you invest in a Spaceship Voyager portfolio, you trust your money with us. We don’t take that lightly.

If you have questions about how we keep your money safe and secure, the regulations we adhere to, our licensing and other details, you can find them at our Support page.

For anything else, use our in-app chat — or contact us.

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