Surge in Superannuation Scams Alarms Industry
Cbus Super, one of Australia’s largest industry super funds, has issued an urgent warning about the increasing threat of superannuation scams. The fund’s chief raised the alarm as scammers intensify their focus on Australians’ retirement savings. Over the last 12 months, super scams have targeted more Australians, particularly retirees and those nearing retirement. The Australian Competition and Consumer Commission confirmed that losses from superannuation scams in 2024 exceeded $30 million. This figure continues to rise in 2025 as sophisticated schemes emerge.
Figure 1: Superannuation scam warning signs and statistics for Australian consumers
Superannuation Pool Makes Australia a Target
Australia boasts the fourth-largest pension pool globally. Scammers now seek access to more than $3.5 trillion in superannuation assets managed by Australians. Due to larger average fund balances, older members are at greater risk. Cbus and the entire industry acknowledge the scale and evolving nature of threats, both to individual account holders and the wider superannuation system.
How Scammers Conduct Fraud
Superannuation scams often begin with cold calls, unsolicited text messages, or emails from fraudsters posing as trusted financial advisers or superannuation fund officers. The fraud often relies on false but official-looking documentation, high-pressure tactics, and promises of unrealistic investment returns. One scam pitch states: “You could double your retirement savings in 12 months!” Another claims: “Your current super fund is underperforming — let us show you a better way.” These lines lure individuals towards handing over personal and account information.
Fake Services and Stolen Details
Fraudsters frequently create cloned comparison websites, forge emails, and establish bank accounts in customers’ names, with ultimate control held by the scammers. Sometimes cold callers appear to establish legitimate self-managed super funds, but eventually transfer the funds to their own accounts. Offers of a “Free Super Review” or invitations to transfer a fund to a new “better performing” platform are frequent cover stories for data theft and fraud.
Alarming Statistics and Real Victims
The ACCC revealed that over $30 million was lost to superannuation scams in 2024 alone. These losses included cases where individuals lost their entire self-managed super funds. Impersonation scams, clone investment schemes, and unsolicited offers for super reviews all contributed to the growing toll. The Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office both issued new urgent warnings, emphasising that the pace and scale of scams are increasing. Data for 2025 indicates a continued upward trend in losses.
Figure 2: The scale of superannuation scam losses in Australia
Tactics: Pressure, Urgency, and Unattainable Returns
Common scam tactics include high-pressure sales pitches, urgent warnings, and promises of above-market returns—often 20% or higher. Anyone promising guaranteed substantial returns stands outside legitimate investment laws and regulations. Cbus confirms that it does not ask members for personal identification documents or bank details through unsolicited communications. Scam operators, however, impersonate known institutions and build trust before stealing vital information necessary to access super funds.
Super Scam Variations and Risks
Scams now range from direct requests for member credentials or tax file numbers to setting up new SMSF structures in a victim’s name and quickly transferring funds away. Sometimes the application forms submitted are not the originals completed by legitimate members. Secondary bank accounts under scammer control are then used for fund transfers.
Warning Signs Consumers Should Heed
ASIC highlights key warning signs to protect against superannuation scams:
- Unsolicited offers claiming to consolidate super or provide a super “health check”
- Requests for identity documents or fund access details
- Promises of exceptional, risk-free returns
- Urgent communication requiring immediate action
Australia’s National Anti-Scam Centre re-emphasised the “Stop. Check. Protect” protocol to help identify manipulation attempts. Members should hang up if unsure, check fund credentials through official registers, and never act under pressure.
Cbus Chief Calls for Vigilance
Cbus confirmed it continues to strengthen account monitoring and member communication, warning that scam threats now evolve faster than public advisories circulate.
The Cbus Chief stated: “Protecting yourself from financial scammers is crucial to keeping your super safe.” The fund urges regular account monitoring and direct contact if something appears wrong with an account’s activity or balance. The statement adds: “It may be difficult to recover funds lost in a scam as time passes.”
Steps for Protection and Reporting
Cbus and ASIC recommend these steps to reduce risk:
- Never share superannuation or SMSF details with unsolicited callers or emailers
- Double-check any adviser or company details directly with ASIC and the ATO
- Use only regulated and verified platforms for any transfers or investment decisions
- Enable two-factor authentication on all accounts
- Consult independent professionals before changing super arrangements
- Report any suspicious activity immediately to the super fund, ASIC, ATO, Scamwatch, or banks
Figure 3: Essential steps to protect superannuation accounts from scams and fraud
Losses Difficult to Recover
Cbus clarified that scam losses are often irreversible once money leaves the account. The longer the delay in noticing a scam, the harder it becomes to recover funds. The fund’s advice stresses double-checking communications and accessing help lines if in doubt.
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Broader Industry Response
The growing magnitude of fraud led to increased cooperation among super funds, regulatory authorities, and law enforcement agencies. Regulatory authorities and the National Anti-Scam Centre are on the way to enhance the process of raising public awareness and implementing technical measures, which are important to detect the presence of scam attempts as early as possible. But fraudsters keep evolving and people should be careful and cautious in dealing with their superannuation funds.
Conclusion: Secure Super, Secure Retirement
The Cbus Chief’s warning emphasises the growing importance of vigilance amidst a rising tide of scams targeting superannuation. Australians are urged to question unsolicited offers, check the credentials of advisers independently, and remain cautious before making changes to their retirement funds. The future security of superannuation demands active defence from both industry and members. Decades of effort must not fall victim to convincing but fraudulent schemes.
