Reserve Bank of Australia governor, Philip Lowe, put investors on notice earlier this month when he warned that interest rates were unlikely to rise here until at least 2024.

Record low interest rates have already resulted in the income return rates from basic fixed interest products such as term deposits being dropped to well below 1 per cent.

Average returns from basic cash products such as bank savings accounts are barely hovering above zero per cent.

So, it's not surprising that people wanting a secure and stable income stream may be enticed by investment products offering higher returns, especially when they're backed by well-known domestic and international financial companies.

But, be very careful.

A rise in investment scams

A warning last month from the Australian Securities and Investments Commission (ASIC) about the rise of "imposter bond" investment offers in Australia is a timely reminder that you do need to be constantly on the lookout for potential scams.

This new wave of fraudulent investment activity is being driven by scammers, pretending to be associated with well-known financial products providers, who have been promoting bond investments they claim will deliver secure, high-yield returns.

According to ASIC, investors are being scammed after they complete an online enquiry form expressing interest in receiving investment advice, often via a third party or comparison website.

People who have decided to invest in these bogus bonds have been directed to transfer money into a bank account, only realising afterwards that the investment product is not real and their funds have effectively been stolen.

ASIC says these bogus bond funds "are raising not thousands, but millions of dollars from Australian investors".

"We remind investors to check that they are actually dealing with the company they think they are dealing with," the regular notes. "Do not share personal information online unless you can verify who is using the information and how it will be used. We are seeing a rise in suspicious websites that are simply lead generators for scammers."

And these scams are not just limited to bogus bond schemes. There has been an alarming rise in investment scams globally over the last year as cybercriminals have set up schemes to fleece investors hunting for higher investment yields.

The financial fallout from COVID-19 pandemic on many households has played into the hands of opportunistic scammers.

Recent data from the Australian Competition and Consumer Commission's (ACCC) Scamwatch revealed Australians lost more than $176 million in 2020 as a result of online scams, representing a 23 per cent jump over 2019.

What to watch out for

Some of the common tactics being used by the bond imposter scammers include:

• Sending professional looking fake prospectuses with unrealistically high returns;

• Falsely stating the bonds are issued by prominent financial services firms when this is not true and there is no underlying investment;

• Falsely claiming investor funds will be pooled to invest in government bonds or the bonds of companies with AAA credit ratings;

• Falsely claiming the purchase price of the bonds is protected under the Commonwealth Government's Financial Claims Scheme; and

• Using the contact details gathered online through fake investment comparison websites to call people and pressure them to invest or risk missing out.

How to avoid investment scams

A first point to note is to reject all unsolicited approaches to invest in a financial product, even if they come via people claiming to be from a well-known company or a government authority.

Beyond that, there are multiple ways to greatly reduce your chances of ever being tempted into a scam.

• Ensure any promotional investment emails you receive, even from companies you already invest with, are legitimate.

• If in any doubt over a company's bona fides, check that its website is displaying a genuine Australian Business Number and an Australian Financial Services Licence (AFSL) number. These details can be checked directly using ASIC's online search registers.

• Don't ever click on links or open attachments in emails unless you are completely certain of the authenticity of the sender.

• You can easily verify website addresses by searching a company (without clicking on an email link), and by checking contact details through legitimate online information sources.

• Never respond to messages, calls or emails that ask for any personal information or financial details. ASIC advises people to just hang up on callers attempting to interest you in investments, and to delete any suspicious emails.

• Types of approaches can be investment cold calls from bogus portfolio managers or real estate agents pretending to promote share investments or property schemes, or to offer financial advice.

• Don't fall for approaches to investment seminars designed to promote "exclusive" opportunities offering high returns. These can be straight scams, or involve very high-risk investment products or schemes.

• Be on the alert for superannuation scams offering to give you early access to your super funds. Accessing superannuation is subject to strict conditions governed by federal legislation.

• Lastly, if an investment offer sounds too good to be true, it probably isn't legitimate.

The ACCC's Scamwatch website should be your first port of call to check out everything to do with investment scams, including news and alerts of current activities.

Also check ASIC's extensive Moneysmart list of companies you should not deal with.

Vanguard Australia