Spotting imposter bonds and term deposit scams

Imposter bonds and term deposit scams are on the increase, with government watchdog Scamwatch receiving more than 440 reports in 2023 and total reported losses amounting to more than $41 million.

These scams deceive people into believing they are investing in low-risk investments with a legitimate company or bank. Scammers create convincing websites and email addresses depicting or impersonating a licensed financial services firm’s investments. They may also purchase advertisements on rate comparison services. 

After entering their details online, victims are often contacted by a fake sales manager or financial adviser and sent professional looking documentation about specific investment products. Once funds are transferred scammers quickly move them to an offshore bank or cryptocurrency, so that it becomes almost impossible for the relevant authorities, once notified, to locate the funds. 

While these scams are extremely sophisticated, there are steps you can take to safeguard yourself and your organisation. 

• Check business contacts against publicly available information. Scammers often make small changes to a genuine firm’s address, phone number or email address. AFCA has a list of financial firms to help you check details and contact the organisation if you have concerns. 
• Look out for persuasive language such as ‘guaranteed’, ‘secure’ and ‘free’, which ASIC asks financial companies not to use. 
• ASIC’s investor alert list is a list of suspicious businesses that are not to be trusted. We recommend searching this list before considering an investment. 
• Do your own online research by searching the company name along with the word ‘scam’. You can also check Google reviews of the organisation. 
• Watch out for suspicious bank account details. The name of the bank account must be in the name of the licensed investment provider. If you are transferring money to invest in bonds or term deposits, the BSB should be for that bank. Check the correct BSB on the Australian Payments Network. 

Get in touch

If you receive an email or call purporting to be from UFS and are unsure if it is genuine, you can get in touch by calling us on 1300 133 673 or emailing contactus@unitingfinancial.com.au