Super Scams Australia — Common Superannuation Scams and How to Avoid Them

Superannuation scams target Australians’ retirement savings — often promising early access, high returns, or tax savings. With over $3.5 trillion in the Australian super system, these scams are sophisticated and aggressively marketed. Here’s what to know.

The Most Common Super Scams in Australia

1. Illegal early access schemes

The most common super scam involves promoters claiming they can help you access your super early — before preservation age — by setting up a company, trust, or SMSF. This is illegal.

Signs:

  • Claims your super is “yours” and you should be able to access it now
  • Involves setting up a shell company or SMSF you don’t control
  • Charges upfront fees (often a percentage of your super balance)
  • May ask for personal documents including your TFN and fund details

The ATO and ASIC actively pursue these promoters. If you participate, you can be taxed on the entire amount withdrawn as income and face penalties — even if you were the victim.

See Illegal Early Release of Super.

2. Fake super funds

Scammers create fake super funds with official-sounding names, professional-looking websites, and fraudulent ABNs. They may cold-call or email you claiming to be from a “new high-return” fund, or pretending to be a well-known fund.

Signs:

  • Contacted out of the blue about a super product
  • Unable to verify the fund via APRA’s regulated fund register
  • Promises returns that are unrealistically high (“15–20% guaranteed”)
  • Pressure to act quickly

3. Phishing and account takeover

Scammers impersonate the ATO, Services Australia, or your super fund by email, SMS, or phone to steal login credentials or TFN details. Once they have access to your myGov or fund account, they can redirect contributions or initiate rollovers.

Signs:

  • Unexpected contact claiming to be from the ATO about “unclaimed super”
  • Asks you to click a link and log in to verify your details
  • Requests your TFN, myGov password, or super fund login

The ATO will never ask for your myGov password by email or SMS.

4. SMSF investment fraud

Scammers target SMSF trustees with fraudulent investments — typically high-return promissory notes, crypto assets, or offshore schemes. SMSF trustees have more investment discretion and less regulatory protection than members of APRA-regulated funds.

See SMSF Fraud.

5. Unsolicited financial advice

Cold calls or social media advertisements offering “free super reviews,” “fee audits,” or “better super options” may be fronts for collecting personal information or switching you to high-commission retail products.

How to Protect Yourself

  1. Verify any fund before rolling over — check the APRA regulated entities register and the ATO’s ABN lookup
  2. Never share your TFN, myGov password, or fund login with anyone who contacts you unsolicited
  3. Access myGov directly — type the address yourself, don’t click links in emails
  4. Enable multi-factor authentication (MFA) on your myGov and super fund accounts
  5. Be sceptical of guaranteed returns — super investments involve risk; guaranteed high returns are a hallmark of fraud
  6. Check for AFSL — anyone providing financial advice must hold an Australian Financial Services Licence (AFSL). Verify at ASIC’s professional register

What to Do If You’ve Been Scammed

  1. Contact your super fund immediately — they may be able to stop a pending rollover or flag your account
  2. Report to the ATO — call 13 28 61 or use the ATO online tip-off form
  3. Report to ASIC — online at asic.gov.au
  4. Report to Scamwatch — run by the ACCC at scamwatch.gov.au
  5. Seek legal advice — if you have already released super through an illegal scheme, an independent legal adviser can advise on your options for managing the tax consequences

Frequently Asked Questions

Can I get my super back if I was scammed? If the super was illegally released, it is generally treated by the ATO as a taxable withdrawal. Recovery of the funds themselves depends on the specific scheme and whether the promoter can be located and assets traced. This is difficult.

Is it legal to access super to pay debts? Not before preservation age, unless you meet specific conditions (severe financial hardship, compassionate grounds). Any promoter claiming otherwise is promoting an illegal scheme.

For more: Illegal Early Release of Super, How to Verify a Super Fund, SMSF Fraud, How to Report a Super Scam. For advice on your situation, speak with a licensed financial adviser via MoneySmart.