Scam victim issues warning after losing $750,000 of life savings | A Current Affair

Summary

This segment of 'A Current Affair' explores the rising threat of sophisticated online investment scams targeting Australians. Victims like Michelle Lowry, Jodie Bridges, and Sirosh Kalapezzi were duped into transferring life savings to fraudulent companies, often impersonating legitimate financial institutions. Experts reveal common red flags, including suspicious URLs, anonymous email addresses, and unrealistic returns on government bonds. The report emphasizes the importance of verifying company credentials, avoiding too-good-to-be-true offers, and using government resources to confirm legitimacy. Police and financial authorities urge caution, highlighting that investment scams remain one of the leading ways Australians are losing their money online.

Takeaways

• ⚠️ Investment scams are increasingly sophisticated and can take months to execute before targeting a large sum.
• 💸 Victims like Michelle Lowry lost significant life savings ($750,000) by believing fake investment opportunities in bonds.
• 🌐 Scammers often create websites that appear legitimate, including using company registrations and license numbers that seem real.
• 👤 Scammers frequently use fake identities, such as 'Will Hughes,' sometimes with a convincing accent, to gain trust.
• 📞 Fake investment companies may become uncontactable, with phone numbers disconnected and websites taken down after funds are transferred.
• 🕵️‍♂️ Individuals should verify any investment in person and not rely solely on online information, even if the company appears legitimate.
• 🔍 Red flags include unusual URLs with letter substitutions, proton mail addresses, and missing or suspicious contact details.
• 💰 Unrealistic returns, such as 5%–5.5% per annum on government bonds, are a strong warning sign of potential scams.
• 👴 Older investors are often targeted, and even careful individuals can fall victim if they are not vigilant.
• 🚨 Government and police resources, as well as official websites, can help verify investments and identify scam operations quickly.

Q & A

Who is the host of the program featured in the transcript?

The host of the program is Sylvia Jeffries.

What is the main topic of the segment?

The main topic is how to spot fake investment scams that are targeting Australians and stealing life savings.

How much money did Michelle Lowry lose in the scam?

Michelle Lowry lost $750,000 of her life savings.

What red flags did Michelle notice before realizing she was scammed?

Michelle initially saw that EQR Securities was registered with ASIC and had a financial services license number. However, she became suspicious when she couldn't access her online portal, and the contact person, Will Hughes, became unreachable and the company’s website was taken down.

Who else was affected by the same scammer, Will Hughes?

Jodie Bridges was also scammed by Will Hughes and lost $500,000 in a similar scheme.

How did Sirosh Kalapezzi detect a scam attempt?

Sirosh became suspicious when the scammer delayed providing a meeting address and inconsistencies arose with the bank, prompting him to contact the police and banks to stop the payment.

What are some tips Matt Kraft, the cyber crime squad commander, gives to spot fake investment websites?

Matt Kraft advises checking the URL for slight changes, examining the contact page for anonymous emails like ProtonMail, looking for missing physical addresses, and being cautious of 1800 numbers linked with scams.

What warning does Chris Sachi from the Australian Bond Exchange give about investment offers?

Chris Sachi warns that legitimate government bonds typically pay only about 0.5% to 1% per annum, so offers promising 5% or more are a major red flag.

Why are investment scams particularly dangerous for Australians?

Investment scams are the leading method by which Australians lose money to scams, often targeting large sums of life savings and exploiting trust in online investments.

What is the general advice for anyone considering online investments?

Individuals should thoroughly verify the legitimacy of a company before sending money, avoid deals that seem too good to be true, and use government websites to confirm the authenticity of investments.

Which two scam websites are specifically mentioned in the transcript?

The two scam websites mentioned are EQR Securities and Savings Connection.