Although we’d like to believe we are clever enough to outwit a scam, Australians collectively lost more than $480 million to scams last year.
Every year, scammers become more advanced in the methods they use to pocket money from people or even valuable personal information. It’s important to recognise that even the most careful can fall victim to scams that are constantly evolving.
Here, we look at scams that are having the most impact – and how you can avoid them.
Phishing scams continue to reach new heights
The most common type of scam, and one that continues to increase in prevalence, is known as phishing. The reason these scams are so common is that unlike romance scams targeting those looking for love or financial scams targeting investors, phishing scams target everyone – and anyone who has an email account or a mobile phone.
These may come in the form of text messages or emails from a scammer pretending to be a legitimate business or government entity you know and trust.
They are specially designed to convince you to provide your personal information, allowing scammers to steal your identity or access your bank accounts and superannuation accounts. It can even be as simple as the scammer asking you to pay an overdue invoice, a “fine,” or a tax debt.
There are also scammers who pretend to be someone you may know to extract money from you. A classic example is a “hi mum/hi dad” text, where the scammers pretend to be one of your children who has lost their phone and urgently needs you to transfer them money.
How to avoid getting caught
So, given how convincing these messages can be, how do you keep yourself safe? The best defence is awareness and knowing what to look for, so let’s look at some common characteristics of scam emails and texts and some of the methods commonly used by scammers so that you can be alert and keep yourself safe.
- Urgent call to take action or threats – Scammers will often create a sense of urgency by asking you to take immediate action to claim a reward or avoid a fine or penalty. They are hoping that you will react without thinking too much about it or checking the legitimacy of the message or email.
Tip – Be sceptical if a message prompts urgent action, and approach with caution.
- Emails that look like they are coming from a trusted source – Scammers are often quite good at mimicking a business's branding and, at first glance, can look very convincing.
Tip – Some red flags to look for are spelling mistakes or a generic greeting (if the message is from a provider, they should have your name on file). Check the email source carefully. Scammers use subtle misspellings of the legitimate domain name, such as replacing an "o" with a zero or replacing "m" with an "r" or a "n".
- Suspicious links – Scammers include links to online forms to capture your information that can look like the real thing and often send computer viruses and malware through malicious attachments. If you suspect that a message or an email is a scam, don't open any links or attachments.
Tip – Hover your mouse over the link, but don’t click it. Look at the address that pops up when you hover over the link and see if it matches the link typed in the message. To visit a provider’s website, rather than click on a link to a website, manually type the official web address into your browser. You could also use a search engine to find the official website and log in that way.
If you think you may have fallen prey to a scam, contact your bank and report the matter to Scamwatch.
Next steps
With phishing attempts becoming increasingly difficult to spot and avoid, it’s more important than ever to stay vigilant and equip yourself with tools to avoid being swindled.
Our team of experts are here to help you connect with your true potential. If you require assistance navigating ways to protect yourself and your business, speak with your local Nexia Adviser today. Please get in touch with us if you have any questions about anything discussed in this article.
