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ASIC rings alarm bell over Qantas bond investment scams

  • June 04 2021
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ASIC rings alarm bell over Qantas bond investment scams

By Fergus Halliday
June 04 2021

Australia’s securities regulator has warned investors to be wary after reports of a scam offering dodgy Qantas Airways corporate bonds.

ASIC rings alarm bell over Qantas bond investment scams

ASIC rings alarm bell over Qantas bond investment scams

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  • June 04 2021
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Australia’s securities regulator has warned investors to be wary after reports of a scam offering dodgy Qantas Airways corporate bonds.

ASIC rings alarm bell over Qantas bond investment scams

ASIC is issuing a fresh warning for investors to be wary of scams, citing reports that Australians have been directly offered fake Qantas corporate bonds.

According to the regulator, ”Scammers are using the legitimate Qantas bonds listed on the ASX, which have a coupon rate of 7.75 [per cent], by Equity Trustees Limited as a point of reference. Rather than offering a 7.75 [per cent] per annum coupon rate, the scam offers this same per annum rate as the interest rate.”

However, “Equity Trustees Limited have confirmed that these fake bonds are in no way connected with the legitimate ASX-listed bonds they offer.”

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“If you are offered a financial investment, do your own independent research, including appropriate online searches, before investing, and ensure you are depositing money into a bank account which matches the entity you are investing with,” ASIC said.

Over on the Qantas website, the airline said, “We’ve been made aware of fraudulent offers circulating on websites and social media, inviting people to invest in Qantas bonds at a very high rate of return.”

“These offers are clearly fake as we don’t offer bonds to the general public or retail investors, and therefore these offers should be regarded as a scam. We’re working with authorities in this matter.”

The securities regulator issued a similar warning about imposter bonds back in January, with ASIC acting chair Karen Chester urging investors to be wary of claims that are ‘too good to be true’.

“Interest rates globally are currently extremely low and expected to remain so for some time. If you see or receive offers of high-yield bonds, they are either high-risk or they may simply be bogus and a scam,” Ms Chester said at the time.

“Investors searching for income-generating investments are at risk of being duped into buying these imposter bonds. Any prospectus offering incredible returns in the [sic] today’s economic environment is likely to be just that: incredible. ASIC warns investors to be sceptical and make proper inquiries before investing.”

ASIC rings alarm bell over Qantas bond investment scams
ASIC rings alarm bell over Qantas bond investment scams
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About the author

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Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

About the author

author image
Fergus Halliday

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

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