Protecting Your Super from Scams

With over $4 trillion in superannuation savings, it’s no surprise that scammers see super as an easy target. The Australian Securities and Investments Commission (ASIC) has issued warnings about the growing number of high-pressure sales tactics and misleading promises designed to trick Australians into risky superannuation switches. Since your super is likely to be one of your largest lifetime investments, knowing how to protect it is essential.

Why Superannuation is Targeted

Super accounts usually hold significant balances, and many Australians don’t check them regularly. Scammers exploit this by promoting “better returns,” “lost super recovery,” or “free super health checks” to lure people in.

ASIC has identified a sharp increase in schemes encouraging consumers to switch super funds quickly, often using:

• Cold calls and unsolicited emails
• Social media clickbait
• “Free” online super checks
• Promises of special deals or rewards

Common Red Flags

Not every super-related call is a scam, but be alert to these warning signs:

• Pressure tactics – being told you must act now.
• Unexpected contact – cold calls, random emails, or texts.
• “Free prizes” or offers – often promoted on social media.
• Claims of lost super recovery – you can safely track this yourself through the ATO.
• Unlicensed advisers – always confirm credentials with ASIC.
• Phone-only dealings – little or no chance to meet a qualified adviser in person.
• Guaranteed high returns – if it sounds too good to be true, it is.

Why These Tactics Work

Scam operators often sound professional and genuine. Some may even connect you to someone posing as a licensed adviser to boost credibility. The danger is that these investments are often high-risk, complex, and poorly explained. Once you move your super, it can be difficult – or even impossible – to undo the damage.

How to Protect Your Super

Follow these steps to safeguard your retirement savings:

1. Take your time – never rush decisions about your super.
2. End high-pressure calls – hang up if you feel uncomfortable.
3. Check credentials – confirm the adviser is licensed via ASIC.
4. Do independent research – use trusted sites like ASIC’s Moneysmart.
5. Seek independent advice – talk to your accountant or financial adviser.
6. Be cautious online – avoid clicking on ads offering free super reviews.

The Bottom Line

Switching or consolidating super can be beneficial, but only after careful consideration of risks, fees, and long-term impacts. The key is to make these choices on your own terms, not under pressure from unsolicited sales calls.

Your superannuation is too valuable to risk on false promises. Stay alert, ask questions, and if you’re ever unsure, seek professional advice before making any changes.