With the increasing use of digital platforms, financial scams are becoming more prevalent and sophisticated. Australians aged 45-70 are particularly at risk, as scammers often target individuals who may not be as familiar with newer technologies. This guide outlines the latest scams, how they operate, and the steps you can take to safeguard yourself and your finances.
For any questions or concerns about your financial safety, please feel free to contact us or book a meeting with Andrew or Alex. Staying informed is the first step in protecting yourself.
1. Bank Impersonation Scams: How Scammers Bypass Two-Factor Authentication
In recent years, scammers have become adept at impersonating banks, often calling or messaging you with alarming claims about “suspicious activity” on your account. These scams are designed to bypass two-factor authentication (2FA) by pressuring you to share personal information or codes sent to your phone.
How It Works: You receive a call or text from someone claiming to be your bank. The caller sounds professional, often using Australian accents and banking terminology. They may know your name, account number’s last digits, or recent transaction details, all of which make the call seem legitimate. They then request additional information or a verification code, which they use to access your account and authorise transactions.
Case Study: In one instance, a woman received a call from a person claiming to be from her bank, alerting her to suspicious transactions. After following their instructions, she realised she had provided enough information for the scammer to access her account and make unauthorised transactions. You can read more about her experience here.
How to Protect Yourself:
- Don’t Share Sensitive Information Over the Phone: Your bank will never ask for personal details or verification codes over the phone.
- Verify Callers Independently: If you receive a suspicious call, hang up and call your bank directly using a number from their website, not the one the caller provides.
- Monitor Your Accounts Regularly: Check your bank statements for unfamiliar transactions.
For more advice on bank scams, visit the Australian Cyber Security Centre (ACSC), which has resources on staying safe from phone scams.
2. Deepfake Video Scams: Identifying Fake Endorsements
Deepfake technology enables scammers to create convincing videos of public figures endorsing products or services. In these scams, the images and voices of politicians or celebrities are manipulated to appear as if they are promoting a particular investment opportunity. These scams usually spread via social media or news aggregator websites.
How It Works: Scammers create fake news articles or videos showing politicians or public figures endorsing financial products or investment platforms. By linking these ads to seemingly legitimate websites, they aim to gain victims’ trust and get them to invest in fraudulent schemes.
Example: A recent scam used deepfake videos of New Zealand politicians endorsing a supposed investment platform, falsely claiming it was government-backed. Victims signed up, believing their money would be secure, only to lose their investments. Details of this scam can be found here.
How to Protect Yourself:
- Question Outlandish Claims: Government officials or celebrities typically do not endorse private investment opportunities. Be cautious of any “exclusive” offers.
- Verify Sources: If you see an ad that appears too good to be true, check official news sources or government websites to confirm its legitimacy.
- Avoid Social Media Investment Links: Links on social media to investment opportunities are often scams. Visit financial institutions’ official websites directly.
For further guidance, see the Australian Competition & Consumer Commission’s Scamwatch page on avoiding investment scams.
3. Cryptocurrency Scams: Understanding the Risks of Digital Assets
Cryptocurrencies are increasingly popular but remain complex and risky investments. Scammers prey on the unfamiliarity many people have with this digital world, often using social media or email to lure potential investors into fake schemes.
How It Works: Cryptocurrency scammers may create fake websites or social media profiles posing as reputable exchanges. Victims are encouraged to invest small amounts initially but are then prompted to deposit more with promises of high returns. In some cases, scammers use “rug pulls,” where they take investors’ money and disappear.
Who’s at Risk: Research has shown that two main groups are particularly vulnerable:
- Less tech-savvy individuals who lack knowledge about cryptocurrency and blockchain technology.
- Overconfident investors who believe they’re knowledgeable enough to avoid scams, which can make them less cautious.
You can read more about the research findings here.
How to Protect Yourself:
- Use Only Reputable Platforms: Only invest through licensed and regulated cryptocurrency exchanges.
- Seek Professional Advice: Before investing, consult a financial advisor to understand the risks.
- Be Wary of “Too Good to Be True” Returns: Scams often promise high returns with little risk. Research thoroughly before making any decisions.
For more information, the Australian Securities and Investments Commission (ASIC) has resources on safe cryptocurrency investing.
4. Romance Scams: When Love Turns Costly
Romance scams are another prevalent issue, especially for Australians aged 45 and older. Scammers create fake profiles on dating sites or social media to build romantic relationships with their targets, only to later request money under various pretexts.
How It Works: The scammer builds an emotional connection with the victim, often talking daily and expressing romantic interest. Eventually, they invent a crisis, such as a medical emergency, and ask for financial assistance. Once the victim sends money, the scammer may continue to ask for more or disappear altogether.
Example: In a recent case, a woman was scammed out of thousands of dollars after months of communication with someone she thought was her boyfriend. She later discovered his profile was fake, and he had been using her emotions to manipulate her.
How to Protect Yourself:
- Be Skeptical of Fast-Paced Relationships: Scammers often rush the relationship to gain trust quickly.
- Never Send Money to Someone You Haven’t Met: Regardless of the situation, do not transfer funds to someone you’ve only interacted with online.
- Seek Advice from Friends and Family: Discuss online relationships with people you trust, as they may notice red flags you’ve missed.
For more tips, visit the Department of Home Affairs’ Scamwatch page on romance scams.
5. Phishing Scams: Recognising Fake Emails and Messages
Phishing scams involve fake emails, text messages, or websites that appear to be from legitimate companies, often asking for personal information or account access.
How It Works: Scammers send messages that look like they’re from your bank, utility provider, or a government agency. These messages usually contain urgent language, prompting you to click on a link and enter your personal information. This link, however, leads to a fake website designed to capture your details.
Example: One scam involved emails supposedly from a major bank, alerting recipients to a “security breach” and asking them to verify their account. The emails were well-designed, leading many to click the link and enter sensitive information.
How to Protect Yourself:
- Examine Email Details Closely: Look for small errors in email addresses, URLs, or grammar, which are common signs of phishing.
- Do Not Click Suspicious Links: Avoid clicking on links in unsolicited emails. Instead, go to the website directly by typing in the address.
- Enable Two-Factor Authentication (2FA): Using 2FA on sensitive accounts can prevent unauthorised access even if your password is compromised.
For more on identifying phishing scams, see the Australian Cyber Security Centre’s guide on phishing.
6. Fake Charity Scams: Donating Safely
During natural disasters or crises, fake charity scams surge as scammers exploit people’s goodwill. They pose as charities or relief organisations, requesting donations that go directly to them rather than the cause.
How It Works: Scammers may call, email, or even knock on your door, asking for donations. They might use real charity names or invent convincing new ones, often using emotional stories or visuals to encourage donations.
How to Protect Yourself:
- Donate Directly to Known Charities: If you want to help, donate through official charity websites or government-approved platforms.
- Be Cautious with Crowdfunding: While many crowdfunding campaigns are legitimate, some are not. Check the campaign creator’s credibility before donating.
- Verify Before Donating: Check organisations through the Australian Charities and Not-for-profits Commission.
What to Do if You Think You’ve Been Scammed
If you suspect that you’ve been scammed, follow these steps:
- Contact Your Bank Immediately: Ask if a transaction reversal is possible. If you used another payment service, request a fund trace.
- Contact Us!: We can help guide you, and begin steps to lockdown and protect your accounts.
- Seek Professional IT Help: If you downloaded remote access software on the scammer’s instructions, consult an IT professional to check your device for malware. Report any accessed financial accounts to their providers.
- Contact Victim Support on 0800 842 846. They can provide free emotional and practical support and information.
Get Expert Help Today
Protecting yourself from scams requires awareness and caution. Always verify information, be skeptical of unsolicited requests, and consult with professionals.
If you have questions about financial security or suspect you’ve been targeted by scammers, don’t hesitate to contact us. Andrew or Alex can provide you with trusted guidance to help you stay safe.
Book a meeting with us here or call us today to discuss any concerns. Your safety and peace of mind are our priority.
