The willingness of some people to continue to try to take advantage of poorly informed investors and super fund members is breathtaking. It seems that even the severity of the bear market doesn't deter them.

A few months ago, I wrote about approaches to shareholders with offers to buy their shares at prices much below market value. This was despite the fact that their prices had already sharply fallen!

Perhaps it isn't surprising that hard-hit super members also continue to be targeted during this market by operators of illegal schemes claiming to provide a means to gain early-access to super benefits.

Particularly given the state of the market, it is sad that the ATO, in its role as regulator of SMSFs, has had to just issue a taxpayer alert about the latest schemes. And the tax office is warning that fund members from non-English speaking backgrounds are among those now being targeted. (See: Taxpayer Alert TA 2009/1 - Superannuation Illegal Early Release Arrangements and Beware of illegal schemes to withdraw your superannuation early) OR type the first 2-4 words of each into this sites eWombat facility to locate these documents (the same for any other on the ATO).

The basic scam is to convince fund members to rollover their super saving from large funds into newly established SMSFs, which typically payout the super to members before they are legally entitled to the money - with the scheme operators, of course, extracting big commissions.

There are differing versions to this arrangement that include the new SMSF investing the money in entities associated with the promoters.

The law is crystal clear on the point of access to super savings. From July 1999, new superannuation contributions of any type plus investment earnings must generally be kept in super until the members permanently retire after reaching the so-called preservation age, currently not before 55.

However, preserved super savings can be legally released without meeting the preservation conditions in extremely limited circumstances of severe financial hardship or on compassionate grounds, established on a case-by-case basis. But there are strict procedures to follow. And as the tax office says: "These requests do not require the services of a promoter."

(Members age 55-plus can also legitimately gain access to preserved super savings before retirement through a transition-to-retirement pension, but that is another issue.)

Anyone seeking early access to preserved super savings on what is believed to be legitimate grounds should contact the super fund in the first instance. Applications for the release of these benefits on compassionate grounds must be referred to the Australian Prudential Regulation Authority (APRA) but individual super funds make the final decisions.

So if you get an approach from an illegal operator - perhaps saying that you gain early access to your preserved super savings to buy a boat, large-screen television, go on a holiday or for any other reason - back right away and contact the ATO or APRA (or your Financial planner).