ASIC Warns of High-Pressure Tactics Steering Consumers into Risky Superannuation Investment Schemes

The Australian Securities and Investments Commission (ASIC) has issued a consumer alert, warning about aggressive sales tactics and misleading advertisements pressuring individuals to switch their superannuation into high-risk investment schemes.

The alert highlights increasing concerns over cold calls, clickbait promotions, and promises of unrealistic returns that are luring people into investing their retirement savings in complex and risky schemes, often under the guise of improving their retirement outcomes.

ASIC Deputy Chair Sarah Court has warned that sales calls promoting superannuation switching often carry key red flags—primary among them, pressure to make a quick decision.

The initial sales pitch may sound convincing, but the investment schemes being promoted are frequently complex or inadequately explained, making it difficult—even for experienced investors—to identify problems.

These calls don’t resemble typical scams. The caller may appear well-meaning, claiming they want to help you find lost super or find a better-performing super product, free of charge.

In some cases, callers may refer consumers to financial advisers, adding a sense of legitimacy and reassurance.

“Consumers should always ask questions about salespeople’s connections to funds, particularly in circumstances where a particular fund appears in the pitch, as there may be a commission arrangement. If you are unsure or are feeling pressured, just hang up,” said Sarah Court.

Key red flags identified by ASIC:

• High-pressure sales tactics
• Cold calls
• The touting of free superannuation ‘health checks’ and prizes (often via social media advertisements or websites)
• Offers to find and consolidate ‘lost super’ for free
• The involvement of unlicensed people in the advice process
• Predominant engagement over the phone with limited client contact with a financial adviser
• Poor or no product disclosure
• Promises of high or unrealistic returns

This year, ASIC has issued several consumer warnings related to emerging scam threats. In April, the regulator warned of the growing prevalence of “hydra-like” scams—online investment websites and apps that quickly reappear after being taken down. ASIC also warned about impersonation scams involving the misuse of Alpha Tags in text messages.