ACCC report reveals uptick in social media scams preying on seniors
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As we navigate the digital age, the convenience of staying connected through social media and online platforms has become an integral part of our daily lives.
However, this increased connectivity also brings with it a heightened risk of falling prey to online scams, particularly for the senior community.
Recent figures from the Australian Competition and Consumer Commission (ACCC) have highlighted a sharp rise in the number of older Australians being targeted by social media scams, with losses reaching a staggering $477 million last year.
The ACCC's Scamwatch data revealed that in the last three months of 2023 alone, more than $82 million was lost to scammers, with those aged over 65 suffering the highest losses of any age group.
These scams often involve fake advertisements or impersonation of online retailers, leading victims to pay for goods that never arrive.
Social media platforms such as Whatsapp, Facebook, Instagram, and various dating sites have become hotbeds for such fraudulent activities, with Whatsapp accounting for almost half of these scams.
Meta, the tech giant that owns Whatsapp, Facebook, and Instagram, has faced criticism for the proliferation of scams on its platforms.
'We're committed to safeguarding the integrity of our services, and dedicate substantial resources and technology solutions to protect our community from fake accounts and other inauthentic behaviour,' the company said.
'We have a dedicated reporting channel to take in all content that the ACCC is concerned about.'
The Scamwatch report also indicated that Australians continue to be bombarded by fraudulent texts, emails, and phone calls designed to deceive them into parting with their money.
A recent text message scam targeting HSBC customers, for example, has already siphoned off more than $6 million.
On a more positive note, the report shows a year-on-year drop of $92 million in losses, particularly in investment scams, with quarterly figures indicating a more than 40 per cent decrease compared to the same period in 2022.
Investment scam losses have decreased by 38 per cent to $52.4 million, while crypto losses decreased by 74 per cent to $12.4 million, and bank transfer losses decreased 31 per cent to $40.2 million.
This improvement is attributed to the federal government's tougher stance on scams, which appears to be disrupting criminal operations and reducing losses from record highs.
Assistant Treasurer and Financial Services Minister Stephen Jones expressed cautious optimism that these collective measures are making a difference.
'We're very very hopeful the sorts of strategies we are deploying are working,' he said.
'We're doing fake investment website takedowns… real-time information sharing when a scam is detected…friction in the off-ramps from Australian bank accounts into cryptocurrency exchanges.'
'I wouldn't point to any one of these measures that is working, but I think collectively they are making a difference.'
Furthermore, the establishment of the National Anti-Scam Centre by the ACCC is a significant step forward.
The Anti-Scam Centre was established in the middle of the previous year, specialising in investment and false billing scams where scammers pose as company representatives and request money to be transferred to a bank account under their control.
Despite these efforts, there is still significant pressure on banks, telecommunications companies, and social media platforms to enhance their scam prevention measures.
Complaints about scams have nearly doubled in the past year, with many involving disputes with banks over their slow adoption of 'confirmation of payee' technology, which alerts customers to potential mismatches in payment details.
Although some banks have already implemented the technology, industry experts predict a sector-wide rollout in 2024 and 2025.
The Australian Banking Association has committed to a range of changes, including the implementation of confirmation of payee technology (which costs $100 million) and measures to block or limit transfers to high-risk cryptocurrency exchanges.
However, the sector has been resistant to consumer group campaigns urging banks to reimburse scam victims, except in cases of gross negligence.
The government is working on introducing mandatory codes for banks, telcos, and social media companies to impose tougher standards, with draft legislation expected in the first half of this year.
While the details of victim reimbursement remain unclear, Minister Jones has emphasised the importance of a reimbursement strategy.
'I absolutely want to ensure that more effort is put into [recovering] funds and that there is a reimbursement strategy as well,' the minister said.
What are your thoughts on this news, members? Do you have tips on how to stay safe from these scams? Share them with us in the comments below!
However, this increased connectivity also brings with it a heightened risk of falling prey to online scams, particularly for the senior community.
Recent figures from the Australian Competition and Consumer Commission (ACCC) have highlighted a sharp rise in the number of older Australians being targeted by social media scams, with losses reaching a staggering $477 million last year.
The ACCC's Scamwatch data revealed that in the last three months of 2023 alone, more than $82 million was lost to scammers, with those aged over 65 suffering the highest losses of any age group.
Those aged over 65 reportedly suffered the highest amount of losses due to scams. Image source: Shutterstock.
These scams often involve fake advertisements or impersonation of online retailers, leading victims to pay for goods that never arrive.
Social media platforms such as Whatsapp, Facebook, Instagram, and various dating sites have become hotbeds for such fraudulent activities, with Whatsapp accounting for almost half of these scams.
Meta, the tech giant that owns Whatsapp, Facebook, and Instagram, has faced criticism for the proliferation of scams on its platforms.
'We're committed to safeguarding the integrity of our services, and dedicate substantial resources and technology solutions to protect our community from fake accounts and other inauthentic behaviour,' the company said.
'We have a dedicated reporting channel to take in all content that the ACCC is concerned about.'
The Scamwatch report also indicated that Australians continue to be bombarded by fraudulent texts, emails, and phone calls designed to deceive them into parting with their money.
A recent text message scam targeting HSBC customers, for example, has already siphoned off more than $6 million.
On a more positive note, the report shows a year-on-year drop of $92 million in losses, particularly in investment scams, with quarterly figures indicating a more than 40 per cent decrease compared to the same period in 2022.
Investment scam losses have decreased by 38 per cent to $52.4 million, while crypto losses decreased by 74 per cent to $12.4 million, and bank transfer losses decreased 31 per cent to $40.2 million.
This improvement is attributed to the federal government's tougher stance on scams, which appears to be disrupting criminal operations and reducing losses from record highs.
Assistant Treasurer and Financial Services Minister Stephen Jones expressed cautious optimism that these collective measures are making a difference.
'We're very very hopeful the sorts of strategies we are deploying are working,' he said.
'We're doing fake investment website takedowns… real-time information sharing when a scam is detected…friction in the off-ramps from Australian bank accounts into cryptocurrency exchanges.'
'I wouldn't point to any one of these measures that is working, but I think collectively they are making a difference.'
The National Anti-Scam Centre was established by the Australian government in the middle of 2023. Image source: X/@Scamwatch_gov.
Furthermore, the establishment of the National Anti-Scam Centre by the ACCC is a significant step forward.
The Anti-Scam Centre was established in the middle of the previous year, specialising in investment and false billing scams where scammers pose as company representatives and request money to be transferred to a bank account under their control.
Despite these efforts, there is still significant pressure on banks, telecommunications companies, and social media platforms to enhance their scam prevention measures.
Complaints about scams have nearly doubled in the past year, with many involving disputes with banks over their slow adoption of 'confirmation of payee' technology, which alerts customers to potential mismatches in payment details.
Although some banks have already implemented the technology, industry experts predict a sector-wide rollout in 2024 and 2025.
The Australian Banking Association has committed to a range of changes, including the implementation of confirmation of payee technology (which costs $100 million) and measures to block or limit transfers to high-risk cryptocurrency exchanges.
However, the sector has been resistant to consumer group campaigns urging banks to reimburse scam victims, except in cases of gross negligence.
The government is working on introducing mandatory codes for banks, telcos, and social media companies to impose tougher standards, with draft legislation expected in the first half of this year.
While the details of victim reimbursement remain unclear, Minister Jones has emphasised the importance of a reimbursement strategy.
'I absolutely want to ensure that more effort is put into [recovering] funds and that there is a reimbursement strategy as well,' the minister said.
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awful situation. He is now in jail however he has been given 2 years to repay a measley $30,000 which I feel is pitifil so I hope he becomes someone ‘b*#^£h in jail.
