Self Managed Super Fund (SMSF) Scam Prevention

Is your SMSF protected? What you need to know about scams

Self managed super funds (SMSFs) give trustees control over their retirement savings – but that control also makes them an attractive target for scammers and fraudsters. The Australian Taxation Office (ATO) repeatedly warns trustees to stay vigilant, as millions are lost each year to investment scams and cybercrime.

At Andromedae, our role is to make SMSF administration simple and compliant. That includes helping trustees understand the risks of scams and the practical ways to safeguard their funds.

Why SMSFs are targeted

SMSFs often hold large balances, and trustees are responsible for making their own investment and compliance decisions, including those related to the Division 296 tax. This independence creates opportunities for scammers who pose as advisers, brokers or even government agencies.

According to the ACCC’s Targeting Scams report, Australians reported losing over $2.03 billion to scams in 2024, with investment scams making up the largest share. Many of these involved superannuation or retirement-related investments. Because SMSFs operate outside of large retail or industry funds, trustees can be more exposed if they don’t have strong protections in place.

Common scams and fraud tactics

Scams evolve constantly, but some of the most common tactics aimed at SMSF trustees include:

• Phishing emails or texts: messages pretending to be from the ATO, ASIC or your bank, asking you to click a link or provide login details.

• Fake investment opportunities: offers of overseas property, crypto assets or “too good to be true” returns that require you to transfer funds.

• Impersonation scams: fraudsters pretending to be your accountant, adviser, or even the ATO, often using spoofed phone numbers or email addresses.

• Data breaches and cyberattacks: hackers gaining access to personal details that can then be used to access your SMSF’s bank accounts or online portals.

The ATO regularly issues scam alerts highlighting new methods, so checking these updates is a simple way to stay informed. 

Red flags to watch out for

While scams can look convincing, there are usually warning signs:

• Pressure to act quickly or keep information secret

• Unsolicited calls, emails or messages offering investments

• Requests for personal details, SMSF information or tax file numbers

• Promises of guaranteed returns or high yields with little risk

• Lack of information on the Company, including ACNs, ABNs, Privacy Policies and regulatory affiliations

• Communication that doesn’t match official channels (e.g. emails from Gmail or Hotmail rather than a government or company domain)

If something feels off, it’s worth slowing down and double-checking before you act. Speak to one of our professional support team for a second opinion, or take a look at our article on recent updates to SMSFs this year to keep in the loop with any changes.

How trustees can protect their fund

Trustees don’t need to be cyber experts to protect their SMSF. Simple steps can make a big difference:

• Use strong online security: enable multi-factor authentication for bank accounts and portals, and keep devices updated.

• Verify before you trust: if you get a call or message from the ATO or your professionals, you can ask to hang up and call back using their official number.

• Keep personal details private: avoid sharing TFNs, account numbers or login details by email or text.

• Educate all trustees: make sure every person involved in managing the SMSF understands the risks and red flags.

• Look for business information: When evaluating a company, investment, or any decision related to your SMSF, always review the company’s business information. Are they registered? Where are they registered? Do they have genuine reviews and a digital footprint that you can verify?

The ATO also suggests regularly reviewing your SMSF’s accounts and statements to spot unusual transactions early. A licensed tax agent can help ensure you’re making legitimate decisions, such as claiming deductions for personal contributions, rather than falling for risky arrangements.

Support and resources

If you suspect a scam or believe your self managed super fund may have been targeted:

• Report it to Scamwatch and the ATO

• Contact your bank immediately to freeze accounts or stop transfers

• Inform your SMSF administrator so they can check for irregularities

• Seek independent financial advice before making any investment decisions

Staying informed is one of the best protections. Bookmarking Scamwatch and the ATO’s scam alerts page can help you spot new threats as they emerge.

Staying safe with your SMSF

Managing an SMSF gives you greater control, but it also means taking responsibility for keeping your fund secure. By knowing the common tactics, recognising red flags and putting practical safeguards in place, you’ll be in a strong position to protect your retirement savings.

If you’d like to learn more about how Andromedae can support you with the compliance side of your SMSF, get in touch with us today. We’re here to help make managing your fund simpler, safer and stress-free.

Disclaimer: Andromedae and its staff do not provide financial advice on whether an SMSF is right for you. We also do not provide advice on what investments your SMSF should undertake. Our role is to manage the administration and compliance of your SMSF. Please seek advice from your own financial professionals to determine what is best for your personal circumstances. All content in this blog is provided as general information only.