Investment scams have been the most common category, accounting for nearly $300 million in reported losses
The recent spate of data breaches and cyber attacks has served as a warning for corporate Australia, but it is also throwing a spotlight on the ever-growing problem of scams and fraud being faced by the public.
The latest data indicates a staggering number of Australians are falling victim to phishing attempts or online shopping scams, with most not even reporting their losses to authorities.
“With millions of Australians more vulnerable to scams following the recent spate of large-scale data breaches, there has never been a more important time to know the tell-tale signs of a scammer,” says Australian Competition & Consumer Commission’s Deputy Chair Delia Rickard.
The warning comes in the midst of the Scams Awareness Week – an annual national campaign by the ACCC and the 40-member Scams Awareness Network to highlight policing of scams, cyber safety and fraud and the need for consumer education and protection.
How much money is lost to scams?
The ACCC’s Scamwatch service received more than 166,000 reports between January 1 and September 30, showing a 90 per cent increase in losses to $424.8 million over the same period last year. The consumer watchdog says these numbers vastly understate real losses as only about 13% of victims report to Scamwatch.
Combined losses to Scamwatch, the government and the financial sector are expected to total $4 billion this year. That is nearly double the $2 billion in losses from scams estimated for 2021.
“Scammers evolve quickly, and their tactics are becoming increasingly sophisticated and unscrupulous. There have been hundreds of reports to Scamwatch in the weeks after the recent high profile data breaches and that is expected to continue,” ACCC’s Ms Rickard said.
“Cyber criminals have capitalised on the data breach by impersonating government departments and businesses to carry out identity theft and remote access scams.”
People aged 65 and over have been the worst affected, experiencing losses of $87.4 million, while small businesses reported $6.6 million in losses.
What are the most common scams?
Based on this year’s data, the ACCC has named the highest loss categories as investment scams ($292.9 million), dating and romance scams ($29 million) and remote access scams ($18.7 million).
The majority of losses to investment scams involved crypto investments, with criminals taking advantage of consumers unfamiliarity with the complexities of cryptocurrency. There has also been an increase in imposter bond scams, where the scammer impersonates real financial companies or banks and claims to offer government/Treasury bonds or fixed term deposits.
New figures by Finder’s research team shows up to 15 million Australians may have fallen victim to phishing attempts through fake text and phone calls.
A nationally representative survey of 1,058 respondents revealed 3 in 4 Australians (75%) have received a fraudulent text message or phone call this year. Worryingly, only 21% reported the scam, while 4% didn’t realise until later it was a hoax.
That ties in with ACCC data, which showed Scamwatch has received more than 50,000 reports of phishing scams so far in 2022. This comes despite the Australian Communications and Media Authority (ACMA) registering new rules on June 30 to require telcos to identify, trace and block SMS scams.
Top tips for avoiding scams
- Awareness – The ACCC is rolling out a series of short educational videos, featuring simple and practical tips to help people identify and protect themselves from scams, as part of a national scam prevention campaign. These are available on social media, YouTube and the Scams Awareness Week web page.
“While there is a great deal of work underway to disrupt scammers, our best defence against these types of scams is education. We want Australians to know what to look for, so they don’t get caught out,” Ms Rickard said.
- Know who you’re dealing with – If you’ve only ever met someone online or are unsure of the legitimacy of a business, take some time to do a bit more research. Verify their identity through an independent source such as a phone book or online search. Don’t use the contact details provided in the message sent to you.
- Privacy and security settings – Do not open suspicious texts, pop-up windows or click on links or attachments in emails – delete them. If you use social networking sites, be careful who you connect with and learn how to use your privacy and security settings. Choose passwords that would be difficult for others to guess and update them regularly.
- Be careful when shopping online – Beware of offers that seem too good to be true, and always use an online shopping service that you know and trust.
Finder’s money expert Sarah Megginson says shoppers need to be vigilant in the leadup to Christmas. “If you’re unsure if the site is reputable, a quick google search for reviews will generally bring you up to speed and can also help you identify if the products are legitimate.”
- Report – Contact your bank immediately if you lose money or personal information or if you notice some unusual activity on you cards or accounts. Seek help from organisations like IDCARE and report online crime to ReportCyber. Help others by reporting scams to Scamwatch.
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