In Australia, scams are becoming increasingly sophisticated, posing significant threats to financial and retirement savings. Fraudsters often impersonate legitimate organisations or offer seemingly unbeatable deals to steal personal information and money, making these scams difficult to track and combat.
The variety of scams is vast, ranging from impersonation and phishing to more elaborate schemes like investment and remote access scams. The rise of deepfake AI technology and professionally branded fake websites further complicates the landscape, making it increasingly difficult to discern legitimate opportunities from fraudulent ones.
Understanding these scams and adopting preventive measures is crucial to safeguard your life savings and ensure a secure retirement. This article focuses on prevalent scams targeting money, finance, superannuation, banks, and investments, providing actionable steps to protect yourself.
Impersonation Scams
Impersonation scams involve fraudsters pretending to be from reputable institutions such as banks or government agencies, or even posing as family members. These scammers contact victims through calls or messages, requesting sensitive information like passwords and card details.
They often use “spoofing” software to make the caller ID appear legitimate. For instance, a scammer might claim to be from a bank, reporting an issue with your account, or a relative in need of urgent help. Victims are then tricked into transferring money or sharing confidential information.
Phishing Scams
Phishing scams use emails, SMS, or phone calls to trick individuals into revealing personal and banking information. These messages appear to be from legitimate businesses, such as banks or telecom providers. Scammers aim to obtain bank account numbers, passwords, and credit card details to commit identity theft. Examples of current phishing scams in Australia include fake payment portals on Facebook Marketplace, phishing texts posing as legitimate organisations, and fraudulent internet banking websites advertised on Google.
Investment Scams
Investment scams prey on individuals’ desires to grow their wealth, often promoting fraudulent opportunities in cryptocurrencies or gold. These scams are typically endorsed by fake celebrity testimonials or hijacked social media accounts of friends. Victims are persuaded to invest money they never see again. It’s crucial to verify investment opportunities with trusted sources and seek professional financial advice.
Data from the ACCC’s Scamwatch platform reveals that people aged 65 and over reported higher losses in 2023 than in 2022. These losses, often following contact with a scammer on social media, increased by 13.3% to $120 million. Scammers target older Australians with retirement savings, looking for investment opportunities.
A recent case involved an elderly woman losing her life savings after seeing a deepfake Elon Musk video on social media. After clicking a link and registering her details, she was assigned a ‘financial adviser’. Although she could track her investments online, she couldn’t withdraw her money.
Remote Access Scams
In remote access scams, fraudsters call victims claiming to be from telecom companies, requesting remote access to their computers for maintenance. Once granted access, scammers steal banking credentials and funds. Never provide remote access to unknown callers; always verify the caller’s legitimacy by independently contacting your financial institution or adviser.
Superannuation Scams
Superannuation scams target the substantial savings held in Australians’ super accounts. Scammers may offer to withdraw your super or move it to a self-managed super fund (SMSF) to access the money. If you’ve been affected by a data breach, contact your super fund to let them know. Scammers can use compromised information to access your super accounts.
Here’s how to spot the signs of a Superannuation scam:
- Phishing Scams: Scammers may contact you pretending to be from a financial institution, such as a bank or super fund, and ask for personal or account details. Clicking on a link in their email can give them access to your computer and log-in details for other accounts.
- Encouragement to Open an SMSF: Scammers offer to help you ‘control’ your super by establishing an SMSF and transferring your super into it. They might promise high returns from fake investments, show false returns using fake apps, or offer to handle everything for you. Eventually, they withdraw your super once you transfer it into an account they control.
- Offers for Early Access: Some scammers offer a quick way to access your super early, which is usually illegal and results in additional tax and penalties. They may suggest transferring super into an SMSF for a fee, promising personal use of the funds after paperwork is lodged.
How to Protect Yourself
To avoid falling victim to these scams, follow these tips:
- Verify Contacts: If someone contacts you claiming to be from your super fund, verify by using contact information you’ve sourced independently.
- Check Your Balance: Regularly log into your super account through your fund’s website to check your balance and look for unusual transactions or changes in personal details. Contact your super fund if something doesn’t look right.
- Update Security: Use multi-factor authentication and ensure your super fund has your current contact details.
- Know Super Rules: Understand when you can legally access your super to avoid scams that offer illegal early access.
- Consult Trusted Sources: Speak to a trusted person like a family member, financial adviser, or accountant before acting on suspicious offers.
- Check Licenses: Verify licenses on ASIC’s website and check APRA’s Disqualification Register to ensure the person or organisation you’re dealing with is legitimate.
Anti-Scam Measures in Australia
Since July 2023, ASIC has removed over 3,500 fraudulent investment websites to prevent scams. The National Anti-Scam Centre, also launched in July 2023, brings together experts to strengthen Australia’s defences against scammers and protect personal information.
Changes to Make Today
- Use Two-Factor Authentication (2FA): Add an extra layer of security to your accounts to prevent unauthorised access.
- Strengthen Your Passwords: Create strong, memorable passwords by combining unrelated words with numbers.
Stay Informed
Stay updated on the latest scams by visiting the Australian Cyber Security Centre, Scamwatch, and other reliable sources. Always stop, think, and check before acting on unsolicited requests for personal or financial information.
For more information, please contact Brett Cribb, Steve Nicholas, or James Marshall at +61 (0)7 3007 2007, or email info@stratusfinancialgroup.com.au.
Stratus Financial Group helps individuals, families, and retirees manage their complex financial affairs and coordinate their professional advisers.
Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This is general advice only and does not take into account your objectives, financial situation, or needs, so you should consider whether the advice is relevant to your circumstances. Read the relevant Product Disclosure Statements (PDS) before making any financial decisions.