A sophisticated international social engineering scam led investors to believe they were able to get access to soon-to-be listed companies outside of Australia.
When Peter Cook received a phone call from a man claiming to be Dave Gold of 500 Investments, the opportunity to get into soon-to-be listed companies overseas sounded like an appealing way to broaden the scope of his self-managed superannuation fund.
Social engineering scams manipulate victims with realistic situations and legitimate looking websites.Documents filed in the Supreme Court of Victoria reveal that on July 31, 2020, Cook and his wife, Joan, as trustees of their SMSF, began using 500 Investments, initially depositing $US500 to open a trading account.
That 500 Investments was registered in Saint Vincent and the Grenadines – a small chain of islands in the southern Caribbean – may have been a hint that something not quite right. But then again, in the world of global investments offshoring money to avoid taxation is common. Unbeknownst to the Cooks, “500 Investments was not a legitimate investment business” and the trading accounts set up were not genuine, according to a statement of claim lodged with the court.The Cooks are some of the Australians, and many people across the global in the last 12 months, who have come to believe 500 Investments was a scam.