Australians have lost at least $400 million to telephone investment fraud. So beware of phone calls (emails, faxes, etc) out of the blue offering to buy shares or selling investments, financial advice and financial products. Know you are actually dealing with a reputable company, and not a disreputable one, by checking ASIC’s blacklist for unlicensed overseas businesses and fake regulators.

What is cold calling?
The nature of cold calling investment scams is to operate internationally so local agencies such as ASIC do not have the jurisdiction to investigate and prosecute offenders. Hence, Australians are targeted by overseas ‘companies’, and visa-versa.

Cold calling is simply a sales call (email, fax, etc) out of the blue you did not ask for. Cold calling about financial products or services is illegal if the caller does not have an Australian financial service licence. Overseas callers still require an Australian licence. Cold calling by unlicensed overseas organisations posing as brokers/investment houses is one of the most dangerous frauds.

The overseas businesses listed on the ASIC website have made unsolicited calls to Australians and do not hold a current licence from ASIC. Some organisations may use a name that is similar to a better known and reputable organisation, or falsely claim to be associated with such an organisation.

A full A-Z list can be found on the ASIC website: http://www.fido.gov.au/fido/fido.nsf/byheadline/Cold-calling?openDocument

Source: ASIC, 2010