Aussies lose $481 million to scams, according to the ACCC
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In an era where advancements in technology are on the rise, the dark underbelly of the digital world is becoming increasingly apparent.
Australians have been falling victim to a rising tide of scams, with losses totalling a staggering $481 million in 2023 alone.
This figure, while shocking, still represents a decrease from the previous year's losses of $569 million—suggesting that while the number of scams is increasing, their overall financial impact is decreasing.
The Australian Competition and Consumer Commission's (ACCC) Scamwatch service reported a 26 per cent increase in scam reports in 2023, totalling 301,791.
This alarming figure highlights the growing threat of scams to Australians and the need for increased vigilance and awareness.
But what types of scams have been hitting Australians the hardest?
Financial losses from these scams totalled $24.7 million, marking a 155 per cent increase from the previous year.
These scams also disproportionately affect younger Australians, including students seeking part-time work, and people from culturally and linguistically diverse backgrounds, including non-resident visa holders.
Scammers use fake job ads on social media to lure victims into contacting them through encrypted apps like WhatsApp.
ACCC Deputy Chair Catriona Lowe said: ‘The scam operates similar to an online game, with victims reporting that they are pressured to make an initial investment of their own money along with ongoing payments in order to “level up” and receive a higher income which they never receive.’
‘If you see an ad on social media promising guaranteed income with flexible hours or are contacted out of the blue on WhatsApp about a job opportunity, ask yourself if it could be a scam?’ she added.
These scams often involve fake ads or news stories claiming a celebrity endorses a particular scheme that could make victims big money.
Victims may be approached by an adviser who doesn't hold an Australian financial services licence and may use aggressive tactics to prompt them to take action.
The federal government's Moneysmart website warned that scammers may offer quick and guaranteed investment returns, foreign currency trading, or no-risk opportunities.
These schemes come in the form of text messages or emails from a scammer masquerading as a legitimate business attempting to extract identity or financial information.
The goal of these scams is to steal personal information from the victim, allowing the cybercriminal to access bank accounts and/or superannuation accounts or open accounts in the victim's name.
Losses connected to dating and romance scams fell 15 per cent to $34.4 million, with Scamwatch receiving more than 3,650 reports.
False billing scams, which typically involve the victim receiving an unexpected invoice for goods or services they never ordered or experienced, resulted in losses of $28 million.
Remote access scams, which saw almost 9,000 reports, resulted in losses totalling $15.6 million.
In the face of this growing threat, staying vigilant and informed is crucial.
Always question unsolicited personal or financial information requests, and never click on suspicious links. If a job or investment opportunity seems too good to be true, it probably is.
Remember, your personal and financial information is valuable. Protect it as you would your physical possessions.
Have you or someone you know fallen victim to a scam? Share your experiences and tips for avoiding scams in the comments below. Stay safe, members.
Australians have been falling victim to a rising tide of scams, with losses totalling a staggering $481 million in 2023 alone.
This figure, while shocking, still represents a decrease from the previous year's losses of $569 million—suggesting that while the number of scams is increasing, their overall financial impact is decreasing.
The Australian Competition and Consumer Commission's (ACCC) Scamwatch service reported a 26 per cent increase in scam reports in 2023, totalling 301,791.
The ACCC reported a 26 per cent increase in scam reports in 2023. Source: Tara Winstead/Pexels
This alarming figure highlights the growing threat of scams to Australians and the need for increased vigilance and awareness.
But what types of scams have been hitting Australians the hardest?
Job Scams: The Fastest Growing Threat
Job scams were reportedly the fastest-growing scam type in 2023, with Scamwatch receiving 4,824 reports that same year.Financial losses from these scams totalled $24.7 million, marking a 155 per cent increase from the previous year.
These scams also disproportionately affect younger Australians, including students seeking part-time work, and people from culturally and linguistically diverse backgrounds, including non-resident visa holders.
Scammers use fake job ads on social media to lure victims into contacting them through encrypted apps like WhatsApp.
ACCC Deputy Chair Catriona Lowe said: ‘The scam operates similar to an online game, with victims reporting that they are pressured to make an initial investment of their own money along with ongoing payments in order to “level up” and receive a higher income which they never receive.’
‘If you see an ad on social media promising guaranteed income with flexible hours or are contacted out of the blue on WhatsApp about a job opportunity, ask yourself if it could be a scam?’ she added.
Investment Scams: The Most Financially Damaging
While investment scams received fewer reports (8,161), they resulted in the greatest losses at $293.2 million.These scams often involve fake ads or news stories claiming a celebrity endorses a particular scheme that could make victims big money.
Victims may be approached by an adviser who doesn't hold an Australian financial services licence and may use aggressive tactics to prompt them to take action.
The federal government's Moneysmart website warned that scammers may offer quick and guaranteed investment returns, foreign currency trading, or no-risk opportunities.
Phishing Scams: A Persistent Threat
Phishing scams continued to be a persistent threat, with nearly 109,000 reports last year and losses amounting to $26.1 million.These schemes come in the form of text messages or emails from a scammer masquerading as a legitimate business attempting to extract identity or financial information.
The goal of these scams is to steal personal information from the victim, allowing the cybercriminal to access bank accounts and/or superannuation accounts or open accounts in the victim's name.
Other Scams to Watch Out For
Dating and romance scams, false billing scams, and remote access scams also continue to plague Australians.Losses connected to dating and romance scams fell 15 per cent to $34.4 million, with Scamwatch receiving more than 3,650 reports.
False billing scams, which typically involve the victim receiving an unexpected invoice for goods or services they never ordered or experienced, resulted in losses of $28 million.
Remote access scams, which saw almost 9,000 reports, resulted in losses totalling $15.6 million.
In the face of this growing threat, staying vigilant and informed is crucial.
Always question unsolicited personal or financial information requests, and never click on suspicious links. If a job or investment opportunity seems too good to be true, it probably is.
Remember, your personal and financial information is valuable. Protect it as you would your physical possessions.
Have you or someone you know fallen victim to a scam? Share your experiences and tips for avoiding scams in the comments below. Stay safe, members.
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