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How to protect yourself from scams
December 2021
While you may think it won't happen to you, scams target everyone and are becoming ever-more sophisticated. But there are things you can do to avoid becoming a victim.
Scams have always existed but technological developments have added extra levels of sophistication in recent years. And an increasing number of Australians are being caught out – losing millions in the process. The Australian Competition and Consumer Commission's Scamwatch site found in the year to 19 September, 2021, there was an 89% increase in losses to scams compared to the same period in the year prior, with the average loss being $11,000.
Phone scams hurt the vulnerable
The most common scams are phone-based ones where scammers call or text people claiming to be from well-known organisations or government (Scamwatch received 113,000 reports of phone scams in the year to 19 September, 2021).
Scams are often very traumatic, especially for the vulnerable, such as the elderly, sick and disadvantaged. In 2021, phone scams were behind a sharp increase in financial losses for Indigenous Australians. In 2020, Indigenous peoples made 1515 reports of phone scams, reflecting losses of $223,947. In the year to 19 September, 2021, they made 1783 reports with losses of $2.2 million.
Those aged 65 and over comprise about 32% of all phone scam victims, while people who have English as a second language have lost $6.5 million to these scams in the year to 19 September 2021.
One that has recently caught thousands of people unaware is the Flubot malware scam. It works by sending a text message containing a link to a fake voicemail. If you click on the link, it'll redirect you to a web page that imitates organisations such as Telstra or Optus, where you're then prompted to install software on your phone to listen to the voicemail. If you install the file, hackers can gain access to the personal information you hold on your device, such as that pertaining to your financial affairs.
Other popular scams include phishing schemes, identity theft and investment scams.
How to spot a scam
Some of the more common tactics scammers use include:
- Pretending to be from an organisation you know well and asking for your personal details
- Using robocalls or recorded messages that suggest you need to make a payment for one reason or another (for example tax debts or to retrieve a package).
- Telling you false information, such as your computer needs an urgent repair
- Telling you something bad will happen to you, such as you'll be reported to the police, if you don't click on a link or call a number to check your details
- Disguising their number to make it appear as if they're calling locally when they're really overseas
- Saying you've won a prize
Generally, if it sounds too good to be true, it probably is. And if anyone calls or messages you out of the blue asking for your personal information or money, or someone wants access to your computer, you can be very sure it's a scam.
How to avoid becoming a victim
The best way to protect yourself from phone scams, is to not answer a number if you don't recognise it. If the caller leaves a message, check their number against a website to see if they're legitimate. Also, never click on any links in messages and never give out your password or banking details to someone you don't personally know and trust. And while you might think you'd never send money to anyone you don't know, it does happen – and often. Crucially, never let anyone you don't know take control of your computer.
You can further protect yourself by blocking any numbers you know are from scammers. If you think a message may be legitimate, it's always best to call the organisation or government agency back using contact details that you've found by carrying out an independent search.
It’s also important to make sure your passwords are unique – never use the same online password in two places – and hard to guess. Doing this stops one successful scamming event from becoming the skeleton key to your online world.
Reporting a scam
If you think you've been scammed, it's important to act quickly. Depending on the type of scam you've encountered, there are different organisations that can help. Scamwatch's Report a scam page is the best first point of call as it helps you identify the scam you're dealing with. Unfortunately, Scamwatch says if you've lost money, it's unlikely you'll get it back. But you can act to limit the damage, by doing the following:
- Contact your financial institution, especially if you've given out banking details
- Contact relevant people, such as your work and family, to warn them
- Report social media scams to the relevant service, such as Facebook
- Change your online passwords
If you suspect you may be a victim of identity theft, contact IDCARE – a free government-funded service that helps you set up a response plan for your situation. You can also apply for a Commonwealth Victims' Certificate to help re-establish your credentials with government or financial institutions.
No one wants to be scammed but with the number and types of scams on the increase, it's important to stay alert and aware to avoid becoming a victim. Never give out any personal information to someone who contacts you out of the blue, and if you have any doubts, hang up and report the contact to Scamwatch.
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