Scams are becoming increasingly sophisticated, and Australians are frequently targeted by fraudsters attempting to steal personal information, money, or sensitive data. In 2023 alone, Australians lost over $3 billion to scams, according to the ACCC’s Scamwatch. These scams come in many forms—from phone calls and emails to fake websites and social media schemes—so it’s important to stay vigilant and know how to identify them.
Here are some of the most common scams in Australia and tips on how to spot them to protect yourself from falling victim.
1. Phishing Scams
Phishing scams are one of the most common forms of fraud. Scammers send fake emails or text messages that appear to be from legitimate organisations, such as your bank, a government agency (e.g., the Australian Taxation Office), or even a popular online service like Netflix. These messages often contain links that lead to fake websites where you’re asked to enter personal information, such as passwords, credit card details, or your tax file number.
How to Spot a Phishing Scam:
- Look for generic greetings: Phishing emails often use generic greetings like “Dear Customer” instead of your actual name.
- Check the sender’s email address: Scammers may use email addresses that closely resemble legitimate companies but have small variations, such as extra letters or numbers.
- Beware of urgent requests: Messages that claim you need to act quickly (e.g., “Your account will be suspended” or “Verify your details immediately”) are red flags.
- Inspect the links: Hover over links (without clicking) to see the actual URL. Scammers often create fake websites that look like the real thing but have a slightly altered web address.
2. Fake Investment Scams
Australians are frequently targeted by investment scams, where fraudsters promise high returns with little risk. These scams often appear as advertisements on social media or through unsolicited phone calls. Victims are encouraged to invest in cryptocurrency, stocks, or other financial products that don’t exist. Scammers may also use fake trading platforms or apps that show fabricated account balances to make it seem like your investment is growing.
How to Spot an Investment Scam:
- Unrealistic promises: If an investment promises guaranteed high returns with no risk, it’s likely a scam. All legitimate investments carry some level of risk.
- Unsolicited offers: Be cautious of unexpected investment offers, especially from companies you’ve never heard of or individuals contacting you out of the blue.
- Pressure to invest quickly: Scammers often create a sense of urgency, telling you that the opportunity is limited and you must act fast.
- Request for payment in cryptocurrency or through unusual methods: Be wary if the scammer asks you to send money through untraceable methods like Bitcoin or gift cards.
3. Tech Support Scams
Tech support scams involve scammers impersonating well-known companies, such as Microsoft, Apple, or Telstra, claiming that your computer or internet connection has a virus or security issue. They may ask you to grant them remote access to your computer, allowing them to steal personal information, install malware, or demand payment to “fix” a problem that doesn’t exist.
How to Spot a Tech Support Scam:
- Unsolicited contact: Legitimate companies will never call or email you to tell you that your computer has a problem. Be suspicious of unexpected tech support calls.
- Pressure to act immediately: Scammers often claim that your computer is at immediate risk and that you must grant them access or pay for repairs right away.
- Request for remote access: Never give anyone remote access to your computer unless you’re certain they are a legitimate, trusted source. Scammers use remote access to install malicious software or steal information.
4. Fake Online Stores
The rise of e-commerce has also led to a surge in fake online stores designed to trick consumers into buying non-existent products. These scams are often found on social media or in ads that lead to websites selling products at unrealistically low prices. After making a purchase, victims either receive a counterfeit item or nothing at all.
How to Spot a Fake Online Store:
- Too-good-to-be-true prices: If the prices are significantly lower than those offered by reputable retailers, it’s a red flag.
- Poor website design: Scammers often create poorly designed websites with spelling or grammar errors, low-quality images, or broken links.
- No contact information: A legitimate online store will provide a way to contact customer service, such as a phone number, email, or physical address. Be wary of sites that only offer a contact form.
- Unsecure payment methods: Legitimate retailers will offer secure payment options like credit cards or PayPal. Be cautious if the site asks for payment via direct bank transfer, cryptocurrency, or other untraceable methods.
5. Dating and Romance Scams
Romance scams prey on people looking for companionship. Scammers create fake profiles on dating sites, apps, or social media to build relationships with victims. Over time, they gain the victim’s trust and then claim to be in a crisis (e.g., a medical emergency or stranded overseas) and ask for money.
How to Spot a Romance Scam:
- Fast-moving relationships: Scammers often express strong feelings of love or commitment very quickly, even before meeting in person.
- Excuses to avoid meeting: The scammer will frequently find reasons to avoid meeting in person or video chatting, often claiming they are overseas for work.
- Requests for money: Be highly suspicious if someone you’ve never met in person asks for money or gifts, no matter how compelling their story seems.
- Inconsistent stories or details: Scammers often slip up and provide conflicting details about their background or life circumstances.
6. Tax Scams
During tax season, Australians are frequently targeted by tax scams, with scammers pretending to be from the Australian Taxation Office (ATO). They may claim that you owe back taxes and threaten legal action, fines, or even arrest if you don’t pay immediately. In other cases, scammers will offer a fake tax refund, asking for your personal details and bank account information.
How to Spot a Tax Scam:
- Threats of immediate action: The ATO will never threaten you with arrest or demand immediate payment over the phone. These are tactics used by scammers to create panic.
- Unusual payment requests: The ATO will never ask you to pay a tax debt with gift cards, cryptocurrency, or wire transfers.
- Unsolicited refund offers: Be cautious of emails or texts offering unexpected tax refunds and asking for your bank account or personal details. Always log into your myGov account or contact the ATO directly to check the legitimacy of refund notifications.
7. Charity Scams
Scammers often take advantage of people’s generosity by creating charity scams, particularly after natural disasters or during the holiday season. They impersonate real charities or create fake ones, asking for donations that never reach those in need.
How to Spot a Charity Scam:
- High-pressure tactics: Scammers may pressure you to donate immediately, often using emotional stories to manipulate you.
- Unsolicited contact: Be cautious of calls or emails from charities you’ve never heard of or haven’t previously supported.
- Verify the charity: Always research the charity before donating. You can use resources like the Australian Charities and Not-for-profits Commission (ACNC) to check if a charity is legitimate.
Stay Informed and be Vigilant
Scammers are constantly evolving their tactics to trick unsuspecting victims, but by staying informed and vigilant, you can protect yourself from falling victim to their schemes. Always be cautious of unsolicited requests for money or personal information, and take the time to verify the legitimacy of any offer, message, or website before taking action.
If you believe you’ve encountered a scam or fallen victim to one, report it to Scamwatch and inform your bank or service provider immediately. Staying aware and cautious is the best defence against scammers.