Superannuation Scams
20 January 2009
Superannuation scams can put a big dent in your personal superannuation savings, as superannuation scams will often take it all. The way many superannuation scams are presented is to offer you a chance to access your money earlier than you are meant to be able to. Currently in Australia, unless you have extreme reasons on compassionate grounds to access the preserved part of your personal superannuation savings, it is illegal to do so before reaching your preservation age. This is currently from between 55 to 60 years of age depending on when you were born.
The way the superannuation scams work is that you are asked to help them to convince your current personal superannuation fund to release your savings to the scammer. The scammer will then take all of your money and disappear, or if they are trying for a longer superannuation scam, they will often take a massive commission and give you what's left. As accessing your preserved personal superannuation early is illegal, victims tend not to inform authorities, out of fear they will be prosecuted. This is a common element of scams - involve the victim in something that is illegal so that they are less likely to report what happened.
If you wish to avoid superannuation scams, you mostly just need to exercise common sense. Things that sound too good to be true often are. Any offer to release your superannuation savings early should be carefully considered. Contact ASIC about it and consult an independent financial adviser licensed by ASIC to help determine whether offers you receive or find may be superannuation scams.
Please browse our site to read about choosing a superannuation fund, to read superannuation tips or to read about many other subjects to do with your personal superannuation.
