Last week I detailed another incarnation of dodgy trading software that has been doing the rounds.
It was the usual story – something that will make you rich with little effort, but you have to cough up a ridiculous amount of money for their system.
So this week I’m following up with a few ideas and pointers to ensure you don’t become prey for scammers.
1. Look for an AFSL: An Australian Financial Services License (AFSL) is an indicator you’re at least dealing with someone who has been legally approved by ASIC to sell, advise or deal in financial products.
However, it’s not a total seal of approval as many people have had their AFSL cancelled for being less than reliable financial service providers; however most scam operators are unlikely to have one.
If you’ve accepted an offer to “send more information”, look for their AFSL in the documents.
2. Use Google: If you’ve been called and offered “an exclusive opportunity”, you won’t be alone; someone else will have already have had an experience with the same company and logged it online.
These companies accumulate many frustrated consumers quickly and their name will inevitably make it onto a scam warning that will pop up in a Google search.
Remember, they’ll also try to rebirth under a different name to avoid detection and prolong the scam they’re pushing, so they may not be immediately visible.
3. Put the phone down: Many scammers start with the cold call because they want to personally convince you they can help you make money.
If someone from a company you’ve never heard of is calling to offer you an amazing deal, forget about being rude, just put the phone down.
They want to get in your ear and engage with them because they’ll have a script prepared that smoothly answers your anticipated questions and sweet talks you into buying.
This may seem basic, but people are still bypassing these steps and buying dud share market and horse racing system software for thousands of dollars – don’t let it be you!
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL/ACL 224543, www.mfg.com.au This information is general in nature and readers should seek professional advice specific to their circumstances.
