‘Several red flags’: Banker saves Aussie from a catastrophic $25 million scam
- Replies 8
Disclaimer: The names with asterisk (*) have been changed to protect the privacy of the person in this story.
In an age where technology has made financial transactions as simple as a click or a tap, the risk of falling prey to sophisticated scams has escalated dramatically.
It's a perilous digital world out there, and even the savviest investors can find themselves on the brink of disaster.
This was nearly the case for an affluent Australian who came close to being swindled out of a staggering $25 million.
Daniel Smith* had been enticed by what appeared to be a golden opportunity.
A phone call from a seemingly reputable bank offered him an attractive term deposit rate that was too good to ignore.
In pursuit of the best deal, Daniel* contacted his current bank, National Australian Bank (NAB), to see if they could match the offer.
While the interest rate itself didn't immediately set off alarm bells, the sheer size of the transaction did.
Daniel* was looking to move a monumental $25 million, and this raised eyebrows at NAB.
The transaction was promptly flagged, and NAB's private wealth banker, Amit, along with an investment specialist, was tasked with scrutinising the offer and the documents Daniel* had received.
‘We went through the various pieces of material sent to the customer from the caller, only to discover several red flags,’ Amit said.
The documents featured an oddly placed logo, a discrepancy in the Australian Business Number compared to the official website, grammatical errors, and a deposit rate that was mysteriously absent from the bank's online listings.
These inconsistencies painted a clear picture: Daniel* was on the verge of falling victim to an investment scam.
They immediately contacted Daniel* to halt the transaction, saving him from a devastating financial loss. This incident is a stark reminder of the prevalence of investment scams in Australia.
According to Scamwatch, Aussies reported over 8,000 investment scam cases in 2023 alone, with losses exceeding $291 million.
In another incident, an NAB banker intervened to prevent a Tasmanian couple from losing $40,000 to a scam, promising a 12 per cent return on their term deposit, along with a guaranteed payout should the firm collapse.
The Australian Securities and Investments Commission (ASIC) and its consumer arm, MoneySmart, said, ‘Because scammers impersonate real investment providers in these scams.
ASIC urged the public to be vigilant, recommending that individuals watch out for fake comparison websites or enquiry forms, be cautious of unexpected investment offers, and seek a second opinion from a trusted family member or finance professional before proceeding.
You can stay updated on the latest news on scams through Scamwatch or our very own Scam Watch forum.
Have you or someone you know encountered a similar situation? How did you deal with it? Share your experiences and tips in the comments below.
In an age where technology has made financial transactions as simple as a click or a tap, the risk of falling prey to sophisticated scams has escalated dramatically.
It's a perilous digital world out there, and even the savviest investors can find themselves on the brink of disaster.
This was nearly the case for an affluent Australian who came close to being swindled out of a staggering $25 million.
Daniel Smith* had been enticed by what appeared to be a golden opportunity.
A phone call from a seemingly reputable bank offered him an attractive term deposit rate that was too good to ignore.
Daniel Smith* was close to being swindled out of $25 million from a scam. Credit: Shutterstock
In pursuit of the best deal, Daniel* contacted his current bank, National Australian Bank (NAB), to see if they could match the offer.
While the interest rate itself didn't immediately set off alarm bells, the sheer size of the transaction did.
Daniel* was looking to move a monumental $25 million, and this raised eyebrows at NAB.
The transaction was promptly flagged, and NAB's private wealth banker, Amit, along with an investment specialist, was tasked with scrutinising the offer and the documents Daniel* had received.
‘We went through the various pieces of material sent to the customer from the caller, only to discover several red flags,’ Amit said.
The documents featured an oddly placed logo, a discrepancy in the Australian Business Number compared to the official website, grammatical errors, and a deposit rate that was mysteriously absent from the bank's online listings.
These inconsistencies painted a clear picture: Daniel* was on the verge of falling victim to an investment scam.
They immediately contacted Daniel* to halt the transaction, saving him from a devastating financial loss. This incident is a stark reminder of the prevalence of investment scams in Australia.
According to Scamwatch, Aussies reported over 8,000 investment scam cases in 2023 alone, with losses exceeding $291 million.
In another incident, an NAB banker intervened to prevent a Tasmanian couple from losing $40,000 to a scam, promising a 12 per cent return on their term deposit, along with a guaranteed payout should the firm collapse.
The Australian Securities and Investments Commission (ASIC) and its consumer arm, MoneySmart, said, ‘Because scammers impersonate real investment providers in these scams.
ASIC urged the public to be vigilant, recommending that individuals watch out for fake comparison websites or enquiry forms, be cautious of unexpected investment offers, and seek a second opinion from a trusted family member or finance professional before proceeding.
You can stay updated on the latest news on scams through Scamwatch or our very own Scam Watch forum.
.png){kind=icon}
