Smartphones and online communication have infiltrated our lives over the past decade, but with the rise of this technology has come the opportunity for scammers to take advantage and dupe Aussies out of their hard-earned cash and personal information.
According to figures from ScamWatch, there were more than 600,000 scams reported in 2023, with fraudsters securing more than $2.7 billion from scam victims.
The top five scams in 2023 were investment scams, remote access scams (where the scammer gains access to your computer or device), romance scams, phishing scams (where scammers trick you into handing over personal information) and payment redirect scams.
December is one of the most common months of the year to be scammed as fraudsters ramp up their efforts around online Christmas sales and increased communications around the holiday season. The easiest way to protect yourself and your loved ones is to know the warning signs of a scam.
This Canstar Blue guide discusses how to spot a scam, what actions to take if you do get scammed and how you can prevent being scammed altogether.
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Types of scams
Parcel delivery scams
Parcel delivery scams usually involve sending you a message saying your parcel has been delayed and you have to pay a fee, or you need to update your delivery details. Always independently check your parcel’s status via Australia Post or your courier’s website.
Travel deal scams
With popular travel destinations and accommodation in high demand, scammers take advantage of this by offering you fake tickets, booking deals or holidays. Make sure to only buy from trusted companies and authorised reseller sites.
Fake charity scams
Scammers can prey on people’s goodwill by pretending to be a charity and requesting money. Check with the Australian Charities and Not-for-profits Commission that the person who is contacting you is from a legitimate charity.
Online shopping scams
Online shopping scams can be hard to spot and are crafted by scammers to trick you into buying products that do not exist. Scammers set up fake websites or seller profiles on legitimate retailer websites and post fake ads and reviews. If a price or product seems too good to be true, make sure to do your own research to ensure the seller is legitimate.
‘Hi Mum’ scams
‘Hi Mum’ scams are designed to trick you into thinking a loved one needs help. Scammers impersonate a family member via text message and ask you to send them money. The scammer will say they’re texting you from a new number because their phone was lost or stolen and claim they need money immediately. If you are unsure, contact your loved one through their number in your contacts to verify.
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How to spot a scam
While scam tactics are always changing, there are some commonalities between them. Whether it’s text messages, phone calls, emails or websites, here are some ways you can spot a scam.
Text scams
Text messages are one of the most common ways scammers reach out to you. Between January and October in 2024, there were over 72,000 reported cases of scam texts, with most targeting people with investment and phishing scams. Here are some of the techniques scammers use to steal your information or money.
- The message has a sense of urgency: scammers often send messages with exclamation marks or threats to put you into a state of panic that stops you from thinking things through.
- The message was sent at an unusual time: research from Telstra showed that scammers have been targeting Aussies with fraudulent text messages between the hours of 1am and 4am.
- The message contains suspicious links: scammers often use links that will lead you to a spoof website or phishing scam that will steal your personal information and money.
- The message informs you of an unpaid invoice: text messages from scammers will often contain links or phone numbers prompting you to pay an invoice or resolve an issue.
Phone call scams
You’ve likely received a phone call with an automated message that claims to be from a service provider or company you don’t have an account with. But phone call scams can get significantly more sophisticated than this. Here are some warning signs to look out for.
- The caller claims to be from a service provider you’re not with: sometimes scammers will call pretending to be from a service provider, informing you of an issue or asking you to provide your personal details.
- The caller asks for your personal information: the caller asks for your bank details, password, pin, one-time code, or access to your computer.
- The caller threatens you with arrest or deportation: you may receive a call or voicemail informing you that you will be arrested or deported for fake charges.
Email scams
Email scams are some of the most deceptive as scammers can copy the branding and logos of a company and populate the email with fraudulent links and false information. Here’s what to check if you suspect an email could be suspicious.
- The email comes from an unknown email address: while the name on the email address may look authentic, check the full email address to make sure it is legitimate. Scam email addresses are often from @gmail, @hotmail, @bigpond and other common email domains, rather than the real company’s website. The email asks for payment to a different bank account: the email is claiming to be from your service provider, directing you to make a payment to a bank account that is different to your usual payments.
- The email has threats or urgent language: similar to text message scams, fraudulent emails may also create a sense of urgency or threaten you.
- The email uses generic language: Look out for emails addressed ‘Dear customer’ rather than being personalised to your name. An email that is poorly worded or contains typos should also be treated as suspicious.
Website scams
The National Anti-Scam Centre reported that around 50 percent of fake websites taken down from September to November 2024 were running online shopping scams. There are many ways to spot a scam while online shopping by being cautious and doing your research. Here are a few things that you can do to stay away from potential scams.
- Extremely low pricing: if the product or website you’re looking at has an unusually low price compared to other websites, it may be a scam.
- Reviews are all positive and vague: often scam websites will write fake reviews that lack detail and are all positive.
- Payment methods are suspicious: if you are being asked to pay for items with an alternate payment method such as Bitcoin or gift cards, this is a warning sign that the website is not legitimate.
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What to do if you’ve been scammed
Unfortunately, even if you know what to look for, scams are becoming more sophisticated and anyone can fall for them. Make sure you report it right away if you have been scammed by contacting the relevant organisation. We have compiled some important contacts below.
- If you have transferred money to scammers: contact your bank or credit card provider as soon as possible.
- If you have given out your personal information: call IDCARE, Australia and New Zealand’s national identity and cyber support service on 1800 595 160.
- Report the scam: to help protect others, make sure you report the scam to ScamWatch by visiting their website. You can also report it to the police online.
- If you need emotional support: If you’re struggling after being scammed, you are not alone. You can contact mental health support lines such as LifeLine and Beyond Blue, or MobLink, a support service for Indigenous Australians. You can also reach out to a financial counsellor for free on the MoneySmart website.
How to prevent being scammed
Between January and October 2024, over 200,000 scams were reported to ScamWatch, with total reported losses equalling over $200 million. It is important to know the steps to protect yourself and your loved ones, as everyone is at risk of falling victim to a scam.
- Be wary of links sent via text messages: contact the company yourself to make sure the text was sent by them and not someone impersonating them.
- Contact the company directly: scammers can spoof (copy) numbers, text messages or emails from companies that you know and trust. Make sure to verify it by contacting companies directly using the contact details on their website.
- Let unknown numbers go to voicemail: unfortunately, you can still receive scam calls even if you’re on the Do Not Call Register. If you don’t recognise the number or the person on the other end of the call, let it go to voicemail or hang up.
- Compare pricing on deals that seem too good to be true: often fake websites and other scams will direct you to a product offer or price that is too good to be true. Make sure to compare prices with other websites and do your own research.
- Never make payments using gift cards or cryptocurrency: one way that scammers can take your money is by asking you to pay them with gift cards or cryptocurrency. Legitimate companies will never ask you to pay a debt or for a product or service with alternate payment methods.
These are just some of the ways you can be scam aware, know how to spot a scam and prevent you and your loved ones from having your personal information or hard earned money stolen. As technology gets more advanced, make sure to keep up with the latest scams and report them when you see them.
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