Australia’s superannuation system holds over A$4 trillion, but recent events have shown that long-term investments require ongoing vigilance.
Three major red flags emerged in 2025:
- The collapse of the First Guardian Master Fund
- Cyberattacks on major superannuation providers
- New warnings of $1 billion at risk from dodgy schemes
Here’s what you need to know, and what steps to take.
1. First Guardian Collapse: Missing Millions and High-Pressure Advice
The First Guardian Master Fund, available via various platforms, collapsed this year after freezing withdrawals and moving approximately A$450–590 million offshore, mostly to the British Virgin Islands.
More than 6,000 investors were affected and collectively lost over A$1.26 billion.
ASIC alleges serious misconduct, including misleading marketing, undisclosed advisor commissions, falsified documents, and offshore asset transfers.
Investors were targeted with aggressive cold calls, misleading “super health checks,” and adviser-led rollovers into these high-risk funds.
Regulatory action is underway:
ASIC has frozen assets, launched investigations into directors, advisors, and platforms
Over A$1 billion in retirement savings is feared lost, prompting urgent warnings from ASIC
Monetary awards via AFCA may be possible but are capped and may take years.
2. Cyberattacks on Super Funds: Credential-Stuffing and Stolen Savings
In April 2025, major super funds, including AustralianSuper, Rest, Hostplus, MLC, and ART, were hit by coordinated credential-stuffing attacks.
Hackers used leaked email-password pairs to attempt logins and successfully withdrew funds in some cases.
AustralianSuper reported over A$500,000 stolen across four accounts
Rest reported more than 20,000 compromised accounts, though most were blocked in time
3. Super Red Alert: $1 Billion at Stake
ASIC has flagged “big red alerts” for slick but unsafe super switching schemes, particularly during the new financial year, when scammers target Australians with high-pressure tactics.
Hackers used leaked email-password pairs to attempt logins and successfully withdrew funds in some cases.
What You Should Do Now?
Cyber-Security Actions:
- Reset your super fund password – make it strong and unique.
- Enable multi-factor authentication (MFA) – ideally via an app or hardware token.
- Verify your contact and banking details – don’t rely on suspicious links.
- Monitor your account for any unauthorized withdrawals or access attempts.
- Be alert – expect phishing or calls saying “your super is at risk.”
Financial Safety Measures:
- Check where your super is invested – know your fund and the products you’re using.
- Review adviser recommendations, especially if they involve lesser-known managed funds.
- Use AFCA if you suspect you’ve been misled
- Explore compensation – AFCA awards and government last-resort scheme available.
- Stay informed on fund/platform oversight – ASIC is reviewing trustees like Equity Trustees and Netwealth for their roles
Your trusted advisers
Your retirement savings are more than digital balances, they are critical life funds. Between cyber incidents and high-pressure fund schemes, staying aware and proactive is essential.
At MIQ, we pride ourselves on being trusted advisers who work holistically to protect and grow your wealth. We help you navigate complex superannuation issues, identify potential risks, and ensure your retirement savings are secure and aligned with your goals. If you have any doubts or need guidance on your super or financial plans, please reach out to us—we’re here to support you every step of the way.
This article contains general information about superannuation. It does not consider an individual’s personal circumstances and therefore before relying on any content, you should ensure that you have obtained individual personal advice from a licenced Financial Adviser.
