The SMSF Association has called on its members to educate their clients about identifying and reporting scams, given many are targeted towards older Australians, including fund trustees who have substantial balances.
The industry body made the call as part of Scams Awareness Week, noting ongoing efforts led by the federal government had resulted in losses from fraudulent schemes being reduced by 52.8 per cent for the first six months of 2024 compared with the same period the previous year.
SMSF Association chief executive Peter Burgess said the figures, released by the government-funded Scamwatch, showed scams were being addressed by the joint efforts of government, law enforcement and the private sector, but the size of the superannuation sector made it an attractive target.
“It is no surprise some individuals in our superannuation sector, which now has more than 1 million members, of which 67 per cent are aged 55 and over, and have net assets of $896 billion at 31 March 2024, are targeted,” Burgess said.
“We are extremely cognisant of the fact that it’s older Australians, many of whom have SMSFs, who are often the target of scammers, with the Scamwatch data for the six months to June 2024 showing that people aged 55 and over attracted 37 per cent of the 143,106 scams reported and, tragically, 47.6 per cent of the losses.
“It is not just the older generations who are at risk when it comes to scams targeting people’s superannuation savings. This is why we are asking our members to counsel their clients about scamming and what steps they can take to minimise the risks.”
He said scammers often focused on people who are vulnerable, isolated and not up to date with technology, and as fraudulent schemes become more sophisticated, superannuation members need to remain alert to any activities that target their savings.
“It is important that individuals seek independent specialist advice and if you see something that is too good to be true or just isn’t right, help others by reporting it to Scamwatch,” he said.
“Our role is to raise awareness, encourage conversations and promote vigilance to safeguard SMSFs from this nefarious activity.
“The scams awareness resources available on our SMSF Connect website provide helpful tips and information on how people can protect themselves from scammers.”
