Your inbox probably fills up with investment ideas every week. Property deals claiming double-digit returns. Crypto platforms promising wealth in a few months. Forex groups talking about “exclusive” strategies. A handful might be genuine. Most won’t be.
Australians are losing millions to investment scams every year, and the schemes are getting smarter. Scammers now build glossy websites, use highly produced videos, and recruit influencers to spread the message.
On the surface, everything looks clean and convincing. The real danger is that these offers rarely look like scams anymore. No obvious spelling errors. No strange formatting. Just confident claims and tidy paperwork that falls apart once the money’s gone.
In this post, we’ll walk you through how to spot and avoid investment scams in Australia. You’ll also see how having an accountant by your side gives you an extra layer of protection before you commit to anything.
Why Checking Investments Properly Matters
Investment scams are rising across Australia, particularly in major cities like Sydney, Melbourne, and Canberra. According to the National Anti-Scam Centre, Australians lost a staggering $945 million to investment scams in 2024 alone – and losses continue to climb in 2025, with $128.4 million reported in just the first nine months of the year.
Western Australia has been particularly hard hit, with residents losing over $30 million to investment scams since the start of 2024. In one shocking case, a single victim lost more than $10 million to a celebrity endorsement scam that used fake videos to appear legitimate.
Many of these scams look professional on the surface. They have websites. They show testimonials. They even provide documentation that appears legitimate. But underneath, they hide major risks that can wipe out your savings.
A second opinion from a financial professional helps you avoid costly mistakes. When you’re excited about an opportunity, it’s easy to overlook warning signs. An accountant brings objectivity and experience to the table, reviewing offers through a lens of financial reality rather than hopeful thinking.
Accountants Understand the Numbers Behind Every Offer
You don’t need to be a finance expert to invest well. What you need is someone who can look at the numbers without emotion. Here’s how experienced accountants in Canberra and the surrounds help you make safer choices.
They Analyse Promised Returns
The first thing an accountant looks at is whether the claimed returns make sense. If the Australian property market averages 4 to 6 percent a year, but someone promises 12 percent without clear risk, that deserves scrutiny.
They also check for guarantees. No legitimate investment can guarantee results. Markets change. Businesses fail. Even safe products have variables. A promise of “guaranteed profit” is usually a sign that something isn’t right.
And then there’s the question of how the investment actually creates income. Vague explanations like “advanced algorithms” or “our special trading engine” mean nothing without evidence. Your accountant will look for real numbers, real data, and real mechanisms.
They Review Past Performance
Past performance is the easiest thing to manipulate. Scammers only show the highlights. They hide the down months or invent results altogether.
Your accountant will want to know where the numbers came from. Are they audited? Are they verified by an external source? Do they line up with what similar investments typically deliver?
They’ll also pay attention to gaps or inconsistencies. If the promoter highlights a single strong month but ignores the rest of the year, that’s intentional.
Accountants Help Identify Red Flags Early
Scammers thrive on pressure and emotion. Accountants do the opposite. They slow down the process so you can actually evaluate the offer.
Common Warning Signs They Look For
Here’s what accountants catch quickly:
- Pressure to act immediately. Genuine opportunities don’t expire overnight.
- Offshore accounts or companies with no Australian footprint. Once the money leaves the country, recovery is almost impossible.
- Missing documentation. Legitimate investments always provide a Product Disclosure Statement and proper financials.
- Explanations that don’t leave you any clearer. Confusion is often part of the strategy.
- Celebrity or influencer endorsements. MoneySmart flags this as a major risk. Many of these endorsements are fake, edited, or purchased.
These signals are easy to miss when you’re focused on the upside. Your accountant sees them for what they are.
Checking Licences and Compliance
This is where accountants provide invaluable support – and where many investors skip crucial steps.
ASIC Register Checks
A registered tax agent in Canberra or any reputable accountant in Belconnen or Gungahlin can guide you to the Australian Securities & Investments Commission (ASIC) registers. These public databases let you verify:
- Whether the adviser or company holds an Australian Financial Services (AFS) licence
- Whether the company appears on ASIC’s investor warning list
- Whether the business is actually registered and trading legally in Australia
Checking these registers takes ten minutes but can save you years of financial heartache.
Compliance with Australian Investment Laws
Not every investment opportunity is legal in Australia, even if it’s presented to you by someone here. Your accountant helps ensure:
- The offer complies with Australian securities regulations
- The promoter is legally authorised to offer this investment
- There’s a clear legal framework for what happens if something goes wrong
Without this compliance check, you’re investing in a grey zone where consumer protections may not apply.
Reviewing Contracts and Documents
Even when an offer is legitimate, the way it’s structured can have serious consequences for your cash flow, tax position and long-term goals.
Accountants Can Help You Understand:
When you involve an accountant before you sign, they can walk you through:
- How the investment is structured – company, trust, managed fund, direct asset, or something more complex.
- All the fees, charges, commissions and performance-based costs that might erode your returns over time.
- The tax implications, especially if the investment ties into property, super or business income – this is where experienced property tax specialists can save you from nasty surprises down the track.
- Whether the projections assume perfect conditions or factor in realistic volatility.
- Any missing/vague information, inconsistent statements or clauses that shift large amounts of risk onto you.
Instead of skimming the paperwork and hoping for the best, you’re able to make a conscious, informed choice.
Protecting You From High-Risk or Unregulated Schemes
Some sectors attract more scams than others. Accountants see these patterns regularly:
- Crypto platforms advertising automated profits or early access to new coins
- Overseas property schemes offering “guaranteed” rental returns. These often involve properties in markets you can’t easily verify, with rental guarantees that evaporate once you’ve committed.
- Forex membership groups charging huge fees for “insider signals”
- Seminars that use high-pressure presentations to sell unlicensed financial products
- Social media investment “gurus” showcasing trendy, luxury lifestyles funded by your course purchases, not their investment returns.
Accountants can explain the actual risks involved and help you spot when something doesn’t add up. They’ve seen these patterns before, often with previous clients who learned expensive lessons.
When to Talk to an Accountant
You don’t need a huge investment portfolio to ask for advice. If the amount matters to you, get someone objective in the room.
Reach out to your trusted accountant:
- Before signing anything in a rush
- When you’re told not to involve anyone else
- Before transferring funds overseas
- When an offer sounds too good to be true
- When someone promises “guaranteed” or “can’t lose” returns
A short review could save you years of financial stress.
How Global Accounting Services Supports Clients
At Global Accounting Services, the work doesn’t stop at tax returns. Our role includes protecting your financial stability long before you invest.
We help you understand the numbers without jargon. We review contracts, projections and financial statements to spot inconsistencies. We guide you through ASIC and government checks so you know exactly who you’re dealing with. We break down risks honestly, including the parts promoters tend to hide.
Most importantly, we stay with you long term. As your business advisory partner in ACT, we help you make decisions that match your actual goals, not someone else’s sales pitch.
Remember, scams succeed when they isolate you from proper advice. They rely on urgency, secrecy and excitement. Your accountant cuts through all of that.
Before you move ahead with property, crypto, shares or any other opportunity, talk to our expert team first. A single conversation can prevent a long list of financial regrets.
