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Beware bogus ‘COVID’ bonds: ASIC warns on new scams costing millions

ASIC estimates millions have already been lost by retail investors in Australia. It also warns that there may be little the regulator can do to help investors recoup their lost investments.

ASIC acting chairwoman Karen Chester urged investors to be wary of claims that are “too good to be true”.

“Interest rates globally are currently extremely low, and expected to remain so for some time. If you see or receive offers of high-yield bonds, they are either high-risk or they may simply be bogus and a scam,” Ms Chester said.

“Investors searching for income-generating investments are at risk of being duped into buying these imposter bonds. Any prospectus offering incredible returns in today’s economic environment is likely to be just that: incredible.”

Ms Chester said investors were also at risk of identify theft and that they should not share personal information online unless they could verify who is using the information and how it will be used.

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