Superannuation is often the biggest asset most Australians will own by the time they retire. Whether you’re with a retail or industry super fund or managing your own self-managed super fund (SMSF), your super is your future, and you need to protect it.
We usually think about performance, fees, and investment options when choosing a super fund. But in today’s world, security, both financial and digital, is just as important. From cyberattacks to fund collapses and overseas data handling, risks are growing.
Let’s look at what’s happening in the super industry and why it’s time to take security seriously.
First Guardian Collapse: A Costly Lesson
One of the most shocking recent events in the super world was the collapse of the First Guardian Master Fund. Over 6,000 Australians who had transferred their super into this fund are now facing the possibility of losing up to $590 million.
Many were advised by financial planners to move their superannuation into this fund, but it has now gone into administration. ASIC (Australia’s corporate regulator) is investigating what went wrong, including whether investors were properly informed of the risks.
This situation shows that even registered funds can fail, especially when oversight is weak and transparency is lacking. Sadly, it’s a reminder that your super can disappear due to poor management, not just market performance.
Industry Super Funds Targeted by Hackers
It’s not just investment risks we need to worry about. Cyberattacks on super funds are becoming more common. In 2024 and 2025, several major industry super funds were hit by cybercriminals who targeted individual members.
These hackers were able to access sensitive personal and financial data, including:
- Tax File Numbers (TFNs)
- Super balances
- Contact details
- Linked bank accounts
According to Australia’s National Cyber Crime Coordinator, hackers have been targeting third-party service providers connected to super funds. Even if the fund itself has strong security, smaller companies handling their data might not, which puts your super at risk.
SMSFs: More Control Means More Responsibility
Self-managed super funds (SMSFs) give you full control over your retirement savings, but with that comes greater responsibility. While you’re not relying on a large fund to manage your money, you do rely on other professionals, like your SMSF accountant, financial adviser, or administrator.
One major concern is that some SMSF service providers outsource work overseas to cut costs. That means your financial records, identity details, and even bank information might be handled by people outside of Australia.
While not all outsourcing is bad, many countries don’t have the same privacy and security protections as Australia. You may not even know who is handling your information or where it’s being stored.
As a trustee, you’re legally responsible for keeping your SMSF secure and compliant. If your SMSF accountant or administrator sends data offshore without proper safeguards, it could create big problems, not just for your money, but also for your SMSF tax return and ATO reporting obligations.
SMSF Investments: Watch Closely for Hacks or Fraud
Many SMSF trustees think of their bank account as the only thing that needs watching. But in today’s digital world, that’s just one part of the picture.
You also need to keep a close eye on:
- Online share trading accounts
- Cryptocurrency wallets and exchanges
- Property platforms and fintech apps
- Online logins for superannuation software or SMSF reporting tools
Cybercriminals are always looking for ways to access investment accounts and transfer money. Even if you think your SMSF is safe, one weak password or outdated app could give a hacker everything they need.
Here’s what can go wrong:
- Your crypto wallet might be hacked, and funds transferred with no way to recover them
- Your share trading account might be accessed by someone who makes unauthorised trades
- A scammer may trick you into giving login details over email or text
- Someone handling your SMSF work might click on a phishing link and expose your personal data
And remember: if money is stolen from your SMSF, the ATO still expects your fund to meet its obligations. It’s your job as trustee to keep your assets safe.
What You Can Do to Protect Your Super
Whether you’re with a big fund or running your own SMSF, here are simple steps you can take to protect your super:
1. Choose Secure SMSF Support
If you’re setting up an SMSF, work with a qualified, local SMSF accountant who doesn’t send your work overseas. A transparent provider will tell you where your data is stored and how it’s protected.
At autoSMSF, we handle all work in Australia. No offshore teams. No hidden outsourcing. Just local professionals who understand SMSF compliance and take your privacy seriously.
2. Keep Strong Control Over All SMSF Logins
Don’t just secure your bank account. Make sure your crypto, trading, and SMSF software logins have strong passwords and two-factor authentication (2FA). Never reuse passwords across accounts.
3. Monitor Your Accounts Regularly
Log in to your SMSF bank account, trading account, and other platforms at least weekly. Look for unexpected transactions or balance changes.
Also, keep a close eye when preparing your SMSF tax return, as this is often when errors or unusual activity are discovered.
4. Use 2FA and Updated Software
Enable two-factor authentication on all apps and portals connected to your SMSF. Keep your devices and software up to date with the latest security patches.
5. Be Careful with Emails, Texts, and Calls
Scammers often impersonate the ATO, banks, or super funds. If you get a strange message, don’t click on any links. Contact your SMSF accountant or provider directly if you’re unsure.
Why Security Matters More Than Ever
We’ve entered a new era for superannuation. It’s no longer just about growing your balance; it’s about protecting it.
- We’ve seen a major retail super fund collapse, leaving thousands in limbo
- Hackers have stolen personal data from industry super funds
- SMSFs are now more exposed than ever through overseas outsourcing and digital attacks
As a super fund member or SMSF trustee, you have every right to ask questions about your fund’s security. Who handles your information? Where is it stored? How is it protected?
If you’re running your own SMSF, take the time to set things up properly and get professional help. A secure SMSF setup from the start can help you avoid problems down the track.
How We Help at autoSMSF
At autoSMSF, we specialise in SMSF accounting and compliance, and we take security seriously.
- No overseas processing: All our work is done in Australia
- Simple, transparent systems: You know who’s handling your information
- Expert help: From SMSF setup to preparing your SMSF tax return, we’re here to help you stay compliant and secure
You’ve worked hard for your super. We’re here to make sure it stays safe.
Need help with your SMSF?
Talk to a local SMSF accountant you can trust. Visit www.autoSMSF.com.au to find out how we can help.
