You may not be aware of it, but many Australians are conned into giving out their money to unscrupulous individuals. Many of these are senior adults who are either forced to give out their money by pressure or getting lured into get-rich-quick schemes banking on the hope of earning more money.

Studies reveal that one in 18 Australians get scammed each year. This does not include senior citizens who get abused financially by family or friends, of which an estimated 5.4 % of senior adults have experienced getting scammed according to research.

The most popular of these are get-rich-quick investment schemes, investment opportunities promising dividend payouts and identity theft.

These scams were orchestrated by those in a position of authority and trust or by con artists with very persuasive capabilities. Others are captivated by the promise of financial wellness benefits and hope to find a way out of their financial difficulties. But surely, one can avoid falling victim to these scams and protect your hard-earned money from being stolen.

“Guaranteed” fast return

There’s no such thing as a very rapid return on investment. There are way too many factors involved in the dynamics of business and investments to let you earn a sustainable return on investments in less than a week, a month or even a year.

The Australian Financial Services (AFS) suggests that once you get to determine the red flags of such fraudulent activities, make sure to steer clear right away.

There are three common signals that could help you identify a scam. A risk-free guarantee to increase or double your money in a short period of time, overly consistent investment returns despite volatile market conditions and complex investment strategies without documentation or any product attached to it.

Trust me, we’re best buddies

Trust is one of the biggest dialogues by con artists and scammers to win people to buy into their schemes.

Statistically, the second most reported scam is affinity fraud associated with religion, race or organisation. Be it a fellow churchgoer, club member or social network unless there are valid or quantifiable reasons to show proof of a business or investment offer so just refuse it.

Unclear investment methodology

Literally, this is just like pulling a bunny out of a hat. When people start approaching you for a venture promising to give you stellar returns but could not provide a clear picture of how it is operated or what business model it hinges on, then it’s time to stay away.

A vague profile or business process is a red flag that you should look out for.

No tangible product to sell or offer

Many people are just a stickler for shortcuts, which is a hotbed for scammers. People are still convinced about pyramiding and networking ventures, which at first offer good returns but end up luring you into putting in more investment money and then vanishing into thin air.

It is important to realise that a business provides a tangible service or product otherwise you are just falling into a trap.

So the next time someone approaches you with a remarkable offer, think about these things so that you do not fall into the fraud trap.