How to Spot Fake Social Media Ad Investment Scams Targeting Australian Small Business Owners

Summary

This guide helps you troubleshoot and resolve: How to Spot Fake Social Media Ad Investment Scams Targeting Australian Small Business Owners. Follow the steps below to fix the issue.

Common Causes

Investment scams targeting Australian small business owners are increasingly common on social media platforms such as Facebook, Instagram, LinkedIn, and X (formerly Twitter). These scams typically appear as sponsored advertisements or promoted posts that impersonate well-known Australian public figures, business leaders, or media personalities to lend credibility to fraudulent investment opportunities. Recognising the warning signs early can protect your business finances and personal data.

Quick Fix Steps

1. Pause before clicking any sponsored investment advertisement on social media.
2. Verify the identity of the person or organisation claiming to endorse the investment.
3. Check whether the investment scheme is registered with ASIC.
4. Never share banking details, passwords, or remote access to your devices with an unsolicited contact.
5. Report suspicious advertisements directly to the social media platform.

Detailed Instructions

Recognise Common Red Flags

Fake investment ads often share several warning signs. Be sceptical if you notice any of the following:

• Promises of guaranteed high returns with little or no risk.
• Urgency or pressure to invest immediately before an opportunity expires.
• Use of well-known Australian identities without their consent, often with altered images or deepfake videos.
• Requests to communicate via WhatsApp, Telegram, or encrypted messaging apps instead of official business channels.
• Poor spelling, grammar, or inconsistent branding in the advertisement or landing page.
• Links that direct you to unfamiliar websites rather than official company domains.

Verify the Endorsement

1. Do not rely on the social media advertisement alone.
2. Search for the public figure’s official website or verified social media profile.
3. Contact the public figure’s verified organisation directly using publicly listed contact details to confirm whether they endorse the investment.
4. Be aware that scammers often use stolen photos, cloned accounts, or AI-generated voice and video to impersonate real people.

Check ASIC Registration

1. Visit the Australian Securities and Investments Commission (ASIC) website at asic.gov.au.
2. Use the ASIC professional registers to search for the investment company or financial adviser.
3. Check ASIC’s list of companies you should not deal with for known unlicensed or suspicious operators.
4. If the company is not listed or appears on a warning list, do not proceed with the investment.

Protect Your Business Accounts

1. Never provide your myGov, ATO, or business banking login details to anyone contacting you about an investment.
2. Do not install remote access software such as AnyDesk, TeamViewer, or QuickSupport at the request of an investment promoter.
3. Enable multi-factor authentication on all business social media advertising accounts.
4. Review your social media ad account permissions regularly and remove any unfamiliar users.

Report Suspicious Advertisements

1. On Facebook or Instagram, select the three dots (...) on the sponsored post and choose Report ad.
2. On LinkedIn, select the More icon on the advertisement and choose Report.
3. On X, select the More icon on the promoted post and choose Report post.
4. Report the scam to Scamwatch at scamwatch.gov.au.
5. If you have already provided payment or personal details, contact your financial institution immediately.

If you suspect you have encountered a fraudulent investment advertisement or need assistance securing your business accounts, Open a Ticket with 220 Internet Services.

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