Protecting your investments: Beware of share theft and identity fraud

As identity theft becomes more sophisticated, there has been a sharp increase in reports of stolen shares in Australia since August 2024. If you’re an investor, it’s more important than ever to safeguard your personal information and take steps to protect your investments from fraud. Here’s what you need to know and how you can stay safe.

What is share sale fraud?

Fraudsters are impersonating real investors, like “Jane Citizen,” using stolen or fake identification to open trading accounts and sell their shares. They can even create fake bank accounts in your name to collect the profits, all without your knowledge. Unfortunately, many victims only find out about the fraud when they receive a confirmation letter from their share registry or Clearing House Electronic Subregister System (CHESS).

If you’ve been impacted by recent data breaches, you may be at a higher risk, as criminals can access personal information available online.

How to spot suspicious activity

Be on high alert if you receive unexpected notifications about your shares, bank accounts, or investment portfolios. Fraudulent activity can appear in many forms, from unauthorised transactions to changes in your account details. If anything looks out of place, act quickly and don’t ignore it.

Our tips to protect yourself

Review your portfolios regularly: Keep a close eye on your shares, super, and other investment accounts. Detecting unauthorised activity early can prevent bigger problems down the line.
Use strong security: Set up passphrases (instead of simple passwords) and turn on multi-factor authentication for your online accounts whenever possible.
Secure your mail: Lock your letterbox and check it frequently to prevent mail theft, as fraudsters often steal sensitive information directly from your mail.
Update your contact details: Make sure your adviser, and share registry always have your latest information. This ensures you get immediate notifications if something changes.

What to do if something feels off

If you receive unexpected mail, like a new bank card, changes to your share accounts, or a notification of a share sale you didn’t authorise, take action:

Contact your share registry, bank, or financial adviser directly using their official website’s contact details, not the ones provided in the potentially fraudulent correspondence.
Change your passwords immediately.
Report any suspicious activity to Scamwatch.
Contact IDCARE, a free service that provides support if your identity has been compromised.

Stay informed and protected

For more information on protecting yourself from identity fraud, check out ASIC’s Moneysmart website and the Government’s IDMatch service. Your investments are valuable. By staying vigilant and taking proactive steps, you can help ensure that they stay protected from fraud and theft.
If you need assistance or have concerns, feel free to reach out to your financial adviser – we’re here to help keep your financial journey safe and secure!