Save
ASIC warns investors over ‘too good to be true’ bogus bond scheme
ASIC has warned investors of imposter bond investment offers where scammers are targeting Aussie investors by pretending to be associated with well-known domestic and international firms, offering rates too good to be true.
ASIC warns investors over ‘too good to be true’ bogus bond scheme
ASIC has warned investors of imposter bond investment offers where scammers are targeting Aussie investors by pretending to be associated with well-known domestic and international firms, offering rates too good to be true.
According to ASIC, high-yield bond scams usually occur in most circumstances after an investor completes an online enquiry form expressing interest in receiving investment advice, often via a third party or comparison site.
Scammers, the watchdog explained, often pretend to be associated with domestic and international financial services, offering investors unrealistically high returns. When individuals decide to invest in these bogus bonds, they are directed to pay funds into a bank account.
ASIC warned that it can be difficult to recover money lost to scams, especially if the scammers are based outside of Australia.
As such, acting chair Karen Chester urged 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.
“Investors searching for income-generating investments are at risk of being duped into buying these imposter bonds. Any prospectus offering incredible returns in the today’s economic environment is likely to be just that: incredible. ASIC warns investors to be sceptical and make proper inquiries before investing,” she explained.
ASIC also noted that other common tactics include falsely claiming investor funds will be pooled to invest in government bonds or the bonds of companies with AAA credit ratings, and falsely claiming the purchase price of the bonds is protected under the Commonwealth government’s Financial Claims Scheme.
Ms Chester also urged Australian investors to be careful with sharing their personal information online.
“We remind investors to check that they are actually dealing with the company they think they are dealing with,” she said.
“Do not share personal information online unless you can verify who is using the information and how it will be used. We are seeing a rise in suspicious websites that are simply lead generators for scammers.
“Ensuring investment products are true to label is front and centre for ASIC. While ‘true to label’ covers all aspects of the investment product being offered, the foundation stone is basic truthfulness, and none more so than that the product issuer is actually who they say they are. This conduct is beyond not being true to label, it’s bogus to label.”
RELATED ARTICLES
About the author
About the author
Scams
Trend Micro forecasts a new era of AI-driven scams by 2026
In a comprehensive report released today, cybersecurity leader Trend Micro Incorporated warns that 2026 will mark a significant turning point in the evolution of scams, driven by artificial ...Read more
Scams
Australians urged to stay vigilant as holiday scammers ramp up activity
As the festive season approaches, Australians are being warned to be on high alert for a surge in scam activities. With the increase in online shopping, travel bookings, and holiday preparations, ...Read more
Scams
Scam alert: Trend Micro warns Aussies to be vigilant as Black Friday approaches
As Australians prepare to dive into Black Friday shopping, cybersecurity firm Trend Micro has issued a stark warning about a surge in scam activities targeting eager consumers. According to a recent ...Read more
Scams
Economic stress leaves Australians vulnerable to job and financial scams
As Australians brace for the holiday season, a significant increase in job and financial scams is raising alarms. New findings from global cybersecurity leader Trend Micro Incorporated reveal that ...Read more
Scams
AI-driven investment scams explode: Millions of fraudulent sites blocked, billions lost
In an alarming trend that has caught the attention of cybersecurity experts worldwide, the use of artificial intelligence (AI) in investment scams has surged dramatically. Between March and October ...Read more
Scams
From awareness to accountability: Banks turn scam prevention into a core P&L discipline
Scam Awareness Week is the headline, but the real story is a structural shift: fraud prevention is moving from compliance footnote to board-level performance driver. ANZ’s 15% reduction in scam losses ...Read more
Scams
Inside ANZ’s $100m scam‑fight playbook: how banks can turn awareness into prevention
Public-service messaging won’t stop modern scammers. Australia’s banks are moving from posters to prevention, blending AI, network controls and customer friction to change outcomes. ANZ’s program ...Read more
Scams
ANZ warns Australians to stay alert for scams during end of financial year
ANZ is warning customers to remain vigilant during the end of financial year period as scammers attempt to target Australians during tax time. Read more
Scams
Trend Micro forecasts a new era of AI-driven scams by 2026
In a comprehensive report released today, cybersecurity leader Trend Micro Incorporated warns that 2026 will mark a significant turning point in the evolution of scams, driven by artificial ...Read more
Scams
Australians urged to stay vigilant as holiday scammers ramp up activity
As the festive season approaches, Australians are being warned to be on high alert for a surge in scam activities. With the increase in online shopping, travel bookings, and holiday preparations, ...Read more
Scams
Scam alert: Trend Micro warns Aussies to be vigilant as Black Friday approaches
As Australians prepare to dive into Black Friday shopping, cybersecurity firm Trend Micro has issued a stark warning about a surge in scam activities targeting eager consumers. According to a recent ...Read more
Scams
Economic stress leaves Australians vulnerable to job and financial scams
As Australians brace for the holiday season, a significant increase in job and financial scams is raising alarms. New findings from global cybersecurity leader Trend Micro Incorporated reveal that ...Read more
Scams
AI-driven investment scams explode: Millions of fraudulent sites blocked, billions lost
In an alarming trend that has caught the attention of cybersecurity experts worldwide, the use of artificial intelligence (AI) in investment scams has surged dramatically. Between March and October ...Read more
Scams
From awareness to accountability: Banks turn scam prevention into a core P&L discipline
Scam Awareness Week is the headline, but the real story is a structural shift: fraud prevention is moving from compliance footnote to board-level performance driver. ANZ’s 15% reduction in scam losses ...Read more
Scams
Inside ANZ’s $100m scam‑fight playbook: how banks can turn awareness into prevention
Public-service messaging won’t stop modern scammers. Australia’s banks are moving from posters to prevention, blending AI, network controls and customer friction to change outcomes. ANZ’s program ...Read more
Scams
ANZ warns Australians to stay alert for scams during end of financial year
ANZ is warning customers to remain vigilant during the end of financial year period as scammers attempt to target Australians during tax time. Read more
More articles
OUR PLATFORMS AND BRANDS
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Lawyers Weekly 30 Under 30 Awards
- Commerical Finance Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
PODCASTS
- Accountants Daily Podcast Network
- Australian Aviation Podcast Network
- Broker Daily Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- REB Podcast Network
- Space Connect Podcast
- The Adviser Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- The Smart Property Investment Show
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.