Aussies warned on cold call scams

Australians are being warned to be wary of cold call investment scams because law enforcement agencies find it difficult to shut down the sophisticated syndicates.

Queensland Police are tracking 11 of the syndicates, also known as boiler room scams, which have fleeced investors of an estimated $175 million over the past decade.

The scams are most active in Queensland, with many operating from the Gold Coast, but are targeting investors all over the country.

Many have direct links with Australian crime identities and bikie gangs.

There are another two investigations into cold call scams under way in Queensland, which have resulted in 27 people being charged with 50-odd offences.

Law enforcement agencies say it costs millions to go after the scams, which can prove difficult to investigate because of the complex nature of the syndicates and the standard of proof required to prosecute those involved.

Those who invest are also highly unlikely to get their money back.

The difficulties prompted the Australian Criminal Intelligence Commission (ACIC), Queensland Police, Queensland Crime and Corruption Commission (CCC), and Australian Securities and Investment Commission (ASIC) to issue a joint warning on cold call investment scams in Brisbane on Monday.

CCC chairman Alan MacSporran said arresting and charging individuals was not enough to shut down the syndicates.

"This is one crime type that can be completely eradicated if Australians don't hand over their money," he said.

Mr MacSporran said the CCC and Queensland Police had recently served notices to 63 people allegedly involved in cold call investment scams, which would prove their knowledge of fraudulent activity if they faced court in the future.

Queensland Police Commissioner Ian Stewart said while there had been successful prosecutions with jail sentences of seven years or more, the public had to do their bit.

"They (scammers) are powerless when you simply hang up the phone, log out of the computer and report the scam," he said.

Middle-aged Australians with good income or nest eggs were the most likely to be targeted, Mr Stewart said.

Some victims have lost hundreds of thousands of dollars, although the average is between $20,000-$30,000.