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Sean Camara
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EXCLUSIVE: New study reveals that one in five Aussies fell victim to online scams during the pandemic
EXCLUSIVE: New study reveals that one in five Aussies fell victim to online scams during the pandemic
New research claims that almost one in five Australians fell victim to an online scam during the COVID-19 pandemic.
US-based artificial intelligence company Nuance recently released a study stating that 17 per cent of Aussies have been victims of internet fraud in the last 12 months, with a financial loss averaging $2,431 per person.
A new study revealed that almost one in five Aussies fell victim to online scams, costing a financial loss of $2431 per person. Credit: Getty Images.
Nuance Chief Fraud Prevention Officer for Security and Biometrics, Simon Marchand, said that trade in stolen passwords has boomed during the pandemic.
"Every day, passwords are being sold on the dark web and exploited for fraudulent activity."
"The fraud committed with them - not to mention the challenge and frustrations associated with simply remembering them - is costing unfortunate businesses and individuals vast sums of money, especially in the wake of the pandemic."
Further, the study also disclosed that almost a third of the respondents bounced between two or three passwords, while 18 per cent said that they reset their passwords at least once a month because they often forget them.
The findings show that the solution to the increasing scam incidents was not to make users better at remembering and creating new passwords, rather, the focus should be on proposing a different way to authenticate accounts, according to Mr Marchand.
Mr Marchand suggests that using biometric technology to authenticate online accounts is the best solution for the increasing cases of scams. Credit: Getty Images.
"With fraud on the rise, brands have a responsibility to develop a more comprehensive approach to authentication."
Nuance proposes the implementation of biometric technology — such as a thumbprint used to open a smartphone or voice recognition software — that is incredibly hard for scammers to replicate.
Mr Marchand added: "While Australians are once again transitioning into a post-pandemic world, remote working, shopping and socialising are here to stay."
"Now is the time to confine PINs and passwords to the history books. Stronger approaches to authentication, such as biometrics, have not only been proven to help reduce the cost of fraud, but will also introduce a more streamlined, seamless customer experience to deliver faster and more efficient services."
Reports from the Australian Competition and Consumer Commission’s (ACCC) scam watchdog said that a financial loss of $211 million in scams is recorded in 2021, translating to an increase of 89 per cent on the same period from last year.
An estimated amount of $63.6 million in financial losses was accounted for by phone-based scams — the majority of the reported cases, with 113,000 out of the 213,000 reports being about phone scams.
ACCC Deputy Chair Delia Rickard said: "It's very concerning to see these scams evolving and becoming more sophisticated to steal even more money from unsuspecting people."
"While the proportion of reports involving a financial loss has dropped this year, the people who do lose money are losing bigger amounts. The average loss so far this year is about $11,000 compared to $7,000 for the same period in 2020."
Here at the SDC, we try to always update you on these scams so you can be aware of them. Check out this article about a new government program to tackle scams. If you’re in NSW, check out this article to know where to report a scam in case you encounter a scam on your phone.
