An AFSL-licensed investment manager solicits your funds, shows paper gains, then withdrawals fail
A firm with a real, verifiable AFSL — or an individual operating as its authorised representative — solicits funds via seminars or personal referrals. Statements show strong gains, but withdrawals stall, trigger fees, or the firm stops responding. ASIC is investigating such schemes with potential losses exceeding $100 million.
Also known as: AFSL investment scam Australia, authorised representative investment fraud, rogue financial adviser Australia, licensed investment manager scam, AFSL holder fraud Australia, fake portfolio manager Australia
Already happened to you? Do this in the next few minutes
- 1 Call your bank or card's fraud line right now. Use the number on the back of your card — not any number from the message or caller. Ask them to stop or reverse the payment and freeze the account.
- 2 If you paid by gift card, wire, or an app (Zelle, Venmo, Cash App): contact that company immediately and report it as fraud. Acting fast sometimes recovers the money.
- 3 Report to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov. The sooner, the better.
What to do right now
- 1 Before investing, check the company on ASIC's MoneySmart register at https://moneysmart.gov.au — look up the AFSL number AND the individual's authorised representative entry; confirm both are current
- 2 Search ASIC's banned and disqualified persons register at https://asic.gov.au for the individual's name
- 3 Never transfer funds to an investment manager solely because they show you a real AFSL number — that number verifies the company's licence, not the integrity of the individual or the investment
- 4 If withdrawals are refused or delayed without clear, documented reason, contact ASIC immediately at https://report.asic.gov.au
- 5 If you have already lost money, contact AFCA (Australian Financial Complaints Authority) at https://www.afca.org.au — it handles disputes involving licensed financial services firms
- 6 Report to Scamwatch at https://www.scamwatch.gov.au/report-a-scam or ReportCyber at https://www.cyber.gov.au/report.
Red flags
- ⚠ The investment manager presents a real AFSL number — ALWAYS verify both the company AND the individual representative are listed and current on ASIC's register at moneysmart.gov.au before transferring any money
- ⚠ You were approached through a seminar, a trusted personal referral, or a social media contact — scams that rely on a licensed entity's credibility are specifically designed to bypass scepticism
- ⚠ You receive regular account statements showing strong returns, but have never attempted a withdrawal — paper gains are easy to fabricate
- ⚠ When you try to withdraw, you are told you need to pay a fee, wait for a lock-up period, or provide additional documents — repeated stalling before a withdrawal is a major warning sign
- ⚠ The individual who approached you may no longer appear on ASIC's authorised representative register — check the specific person, not just the company's AFSL status
- ⚠ The firm offers guaranteed or unusually high returns for 'managed' accounts — genuine AFSL holders cannot guarantee investment performance