In an age where technology has become an integral part of our daily lives, many Australians have embraced the convenience of online banking.

However, with this convenience comes a new breed of threat.

These new scams have been on the rise and are targeting unsuspecting individuals, which could lead to significant financial losses.

According to the Australian Competition and Consumer Commission (ACCC), bank impersonation scams led to about $11 million in losses across Australia within the first nine months of 2023.

Additional statistics stated that customers over 55 are vulnerable targets—accounting for 56 per cent of total losses to impersonation scams,

This data highlighted the need for increased vigilance for these schemes, especially among seniors.

Customers should safeguard their money from fraudsters pretending to be bank staff. Image Credit: Shutterstock/TK Kurikawa

So, how do these scams work, and what can you do to protect yourself?

Bank impersonation scams involve criminals contacting potential victims via phone, email, or messaging services, pretending to be from a legitimate bank.

They often claim to be from the bank's fraud department, alerting customers about a compromised account or suspicious transaction.

Their goal is to trick customers into sharing personal or financial information, which they can then use to steal money.

Troy Hunt, the founder of the data breach service Have I Been Pwned, warned that bank impersonators target anyone who responds to them.

They could also tag specific individuals as 'more valuable' due to their access to sensitive financial information.

These fraudulent communications could be convincing as they use advanced technology to mimic legitimate bank contacts.

However, here are some telltale signs customers can watch out for:

Unsolicited contact: Be wary of any unexpected calls or messages from anyone claiming to be from your bank—especially if they request personal information.

Verification: Always verify the authenticity of the contact by reaching out to your bank's official channels, such as information on their website or bank statements.

Request for sensitive information: Banks will never ask for online banking passwords, one-time security codes, PINs, or tokens over the phone.

Suspicious caller or sender IDs: Look out for slight variations in the details, such as unusual dots, special characters, or numbers that don't match the bank's official contact information.

If you suspect a bank impersonation scam has targeted you, take the following steps:

• Hang up immediately if you receive a suspicious call.
• Do not authorise any bank transfers or share personal or financial information.
• Avoid clicking on any links provided in suspicious emails or messages.
• Implement preventive measures such as using a password manager, setting up multi-factor authentication, and monitoring your credit.

If you've fallen victim to a scam:

• Contact your bank immediately to report the fraud and stop any transactions.
• Change passwords on all your devices and online accounts.
• If your personal information has been compromised, reach out to IDCARE at 1800 595 160 for support.
• Report the incident to Scamwatch to help protect others from falling prey to similar scams.

Everyone's vigilance could make a difference in safeguarding everyone's finances.

Key Takeaways

• Bank impersonation scams—where criminals pretend to be bank workers to steal personal and financial information—have increased in Australia.
• The Australian Competition and Consumer Commission (ACCC) reported about $11 million in losses to such scams last year, with citizens over 55 being particularly affected.
• Scamwatch advised that banks will never ask for online banking passwords, one-time security codes, PINs, or tokens over the phone.
• Suspicious transactions should be reported to the customer's bank, Scamwatch. Compromised personal information should also be reported to IDCARE.

Have you or someone you know encountered a bank impersonation scam? How did you deal with it? Share your experiences in the comments section below to help prevent these scams.

 

[GrannyJA!]

This is so timely for me. About a week ago I had a phone call from St George 'fraud and scam' department. They knew enough about me that I listened for a few seconds. The first question was 'would you like to listen to our 2 minute privacy assurance' or something to that effect. I was also told that the call would be 'recorded for security and training purposes'. At this point I said 'I will call you back' and disconnected. Obviously I didn't call back on the number I was called from. Trying to get onto my bank by phone, the quickest I could get to speak to a human was 40 minutes. Trying to report through their app and my account left me totally frustrated. There was absolutely no way to access a reporting process.

 

[June E]

This is so timely for me. About a week ago I had a phone call from St George 'fraud and scam' department. They knew enough about me that I listened for a few seconds. The first question was 'would you like to listen to our 2 minute privacy assurance' or something to that effect. I was also told that the call would be 'recorded for security and training purposes'. At this point I said 'I will call you back' and disconnected. Obviously I didn't call back on the number I was called from. Trying to get onto my bank by phone, the quickest I could get to speak to a human was 40 minutes. Trying to report through their app and my account left me totally frustrated. There was absolutely no way to access a reporting process.

I’m not surprised you were frustrated trying to get onto someone to speak to at your bank. None of them make it easy to contact as far as I can see. I was left frustrated trying to talk to someone about my account, even finding a phone number was almost impossible. You would think they would have excess staff with all the closures that they would have staff to actually answer customers enquiries but no such luck.

 

[Annna]

I’m not surprised you were frustrated trying to get onto someone to speak to at your bank. None of them make it easy to contact as far as I can see. I was left frustrated trying to talk to someone about my account, even finding a phone number was almost impossible. You would think they would have excess staff with all the closures that they would have staff to actually answer customers enquiries but no such luck.

You would hope that since there's thousands of staff left out of work following branch closures and ATM removals (ATMs also require people to restock and service them).

I too have waited for 20 to 40 minutes when I've made calls to banks in the last few years.

Everytime I've attended a branch and been coaxed to leave a queue to use a tech options, I've informed the staff member:

'I'm here to be served by a person. If everyone agrees to leave the line and uses tech, you won't be employed in the long term'.

The stock response instilled through repeated training propaganda has been:

'No Mam, all staff will be redeployed to departments and call centres servicing the tech using customers'.

My question: Where are all these people when customers try to get help now that there are so many fewer branches and ATMs?

 

[Isis]

Of course, more than one for me. I just hang up ring the bank and report it. Maybe it is true but go to the source and all good

 

[Veggiepatch]

Nice photoshopping of the image in the article.

Since when do four ATMs from four different financial institutions stand side by side like that.

 

[johno cpfc]

A while ago i was called by so called security on my phone and told there were suspicious withdrawals in New Zealand taken from my account and they needed to know the last four numbers on my debit card. I politely told them that if they were from my bank they would already know all my details , they said if i did not give them these details they would freeze my account, i told them if you are from the bank then you would already know all the numbers so i just hung up and phoned the bank and was told this was an attempted scam .