THE HON. JASON CLARE MP
MINISTER FOR HOME AFFAIRS
MINISTER FOR JUSTICE
MINISTER FOR DEFENCE MATERIEL

SENATOR CATRYNA BILYK
CHAIR – JOINT SELECT COMMITTEE ON CYBER SAFETY
SENATOR FOR TASMANIA
MEDIA RELEASE
NEW WARNING – SERIOUS INVESTMENT FRAUD

17 August 2012

Chair of the Joint Select Committee on Cyber-Safety, Senator Catryna Bilyk, urges all Tasmanians to protect themselves against the growing threat of serious and organised investment fraud.

Recently, the Minister for Home Affairs and Justice, Jason Clare, released a new report from the Australian Crime Commission (ACC) and Australian Institute of Criminology (AIC) which provides a national picture of the nature and threat of serious and organised investment fraud in Australia.

“This is the first unclassified report of its kind. It indicates that more than 2600 Australians may have lost more than $113 million to serious and organised investment fraud in the last five years. That number could be even higher because people tend not to report this kind of crime,” Mr Clare said.

Senator Bilyk said that this report correlated with what the Joint Select Committee on Cyber-Safety was hearing in its inquiry into Cyber-Safety and Senior Australians.
“The targets of this type of crime are primarily Australian men, aged over fifty. They are usually highly educated – and have high levels of financial literacy. They are likely to manage their own super,” said Senator Bilyk.

“Criminal syndicate cold call the unsuspecting investor, refers them to a high quality website and sends them a brochure promising strong investment returns. After taking their money they string them along for months or even years and then the money disappears.

“People’s entire life savings are stolen by criminals with the click of a mouse. This type of crime destroys wealth and destroys lives. It’s also very difficult to stop.” Said Senator Bilyk.

“These criminal syndicates usually operate from outside Australia. They use front companies and false names. Once they’ve stolen the money the website disappears and the trail goes dead.”

By the end of August every household in Australia will receive a letter warning them about this criminal activity and providing information on how to avoid becoming a victim.

This is the first time Australian law enforcement agencies have undertaken a mail out of this scale regarding serious and organised crime.

“This problem is not going away. Australia’s retirement savings are growing – making us a bigger target every year,” Mr Clare said.

Australians should take the following actions to prevent becoming victims of investment fraud:

• Visit www.moneysmart.gov.au or call 1300 300 630 for further information or advice.
• Alert your family and friends to this fraud, especially anyone who may have savings to invest.
• Report suspected fraud to the Australian Securities and Investments Commission, on www.moneysmart.gov.au or 1300 300 630, or your local police. Remembering information such as company name, location and contact details will assist with subsequent investigations and enquiries.
• Hang up on unsolicited telephone calls offering overseas investments.
• Check any company you are discussing investments with has a valid Australian Financial Services Licence at www.moneysmart.gov.au
• Always seek independent financial advice before making an investment.

To access the report on Serious and Organised Investment Fraud in Australia see the ACC website www.crimecommission.gov.auor visit www.moneysmart.gov.au or call 1300 300 630 for further information and to report suspected investment fraud.
Senator Catryna Bilyk Labor Senator for Tasmania