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Unfortunately, scammers have lots of tricks up their sleeve to steal your information. It pays to know the common types of scams and how scammers can deceive you, so hopefully you won’t fall for them.
According to the Australian Bureau Statistics (ABS), a scam is 'a fraudulent invitation, request, notification or offer, designed to obtain personal information or money or otherwise obtain a financial benefit by deceptive means.'1
Scams can target anyone, and with scammers using increasingly sophisticated tricks, sadly, it’s easier to fall for them. Reports from ScamWatch released earlier this year revealed Australians lost a record $3.1 billion in scams in 2022, an 80% increase on total losses reported in 2021.2
Here are the common types of scams it pays to know about3:
In this case, criminals compromise or impersonate a vendor’s email account. They change the bank details on the company’s invoices so when the customer goes to pay the invoice, the money goes to the criminal's bank accounts.
This is when cybercriminals trick you into giving them personal information that they can use against you. In a phishing attack, you’ll be sent a fake email or text that looks like it comes from a person or organisation you trust. It could include a link to a fake login page or attachment. If you fall for this kind or attack, you could lose money and access to your accounts, or potentially have your identity stolen.
In a remote access scam, a criminal gains access to your system or device from another location. This could happen when a scammer tricks you to click on their link or download software to access your device.
In these cases, a cybercriminal gains access to your personal documents like your passport, licence, or birth certificate to steal your identity. Potentially, this will allow them to withdraw money from your bank accounts, or even apply for bank loans in your name.
This refers to those scams that use threats to frighten you into giving away money. These can include threats to your life, arrest or deportation. Another common scam is when cybercriminals pretend to contact you from the Australian Tax office and ask for payment for outstanding tax debts, threatening arrest or legal action if you don’t comply.
Cybercriminals target victims on dating websites and apps pretending to be other people and interested in a relationship. They’ll encourage the victim to move their conversation to a more ‘private’ channel like email or text. After building a ‘relationship’ they’ll ask for money, gifts or information.
Here, a cybercriminal will trick their victim into investing money in schemes which pretend to offer high and quick returns.
According to ScamWatch4, these were top ways people lost their money to scams in 2022:
1) Text message: 33% ($28 million reported lost)
2) Phone: 29% ($141 million reported lost)
3) Email: 22% ($77 million reported lost)
4) Internet: 6% ($74 million reported lost)
5) Social networking/online forums: 6% ($80 million reported lost)
Investment scams were the type of scam that caused the greatest amount of financial loss for Australians in 2022, followed by dating and romance scams, false billing and phishing.4
As we reach the final months of 2023, Australians have already lost a staggering $397, 385, 165 across all types of scams.5 Don’t let any of your hard-earned dollars get into the hands of fraudsters. Here’s a useful page from Scamwatch with tips to help you spot and avoid scams.
References:
1 https://www.abs.gov.au/methodologies/personal-fraud-methodology/2021-22#glossary
3 https://www.cyber.gov.au/learn-basics/watch-out-threats/types-scams
5 https://www.scamwatch.gov.au/research-and-resources/scam-statistics
Please note, the above information does not constitute financial advice and does not take into account your current circumstances or goals. Please speak with a financial adviser before acting on any information found here or throughout the 5 Financial website.