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Table of Contents
- Sophisticated Tactics Scammers Are Using In 2024
- Red Flags To Look For Online
- Common Scams Targeting Australians
- Superannuation Scams
- Black Friday, Cyber Monday, and Christmas Shopping Scams
- Anti-Scam Measures Underway In Australia
- Two Changes You Can Make Today
- Keep Up To Date With the Latest Scams
- Frequently Asked Questions (FAQs)
Australians keep falling victim to scams in all kinds of ways: from email phishing scams to outright identity theft. In fact, nearly 94,000 reports about cybercrimes were made to law enforcement through the Australian Signals Directorate’s ReportCyber website from Australians in 2022-23. That’s around one every six minutes.
The Australian Competition and Consumer Commission puts Australians’ combined losses to scams in 2022 at $3.1 billion, which was a massive 80% increase on the year prior—primarily because scammers are more tech savvy than ever before.
Finance scams are constantly evolving. Arm yourself with the latest information about scams in 2024 to avoid falling victim.
Related: Should Banks Reimburse Scam Victims?
Sophisticated Tactics Scammers Are Using In 2024
Aussies are tricked into handing over their money in various ways, but the scam type that leads to the biggest losses—by far—is investment scams, where fraudsters convince you that substantial profits can be made. Reports to Scamwatch show Australians lost $293.2 million on investment scams in 2023—more than seven times the losses of the next-highest category of romance scams.
Financial services professional and avowed ‘investment scams fighter’ Wadzanai Nenzou said that in 2024, scammers were using highly sophisticated tools to appeal to potential victims.
New tactics that even switched-on Aussies can miss include:
Deepfake AI videos
Deepfake AI videos that have celebrities like Elon Musk promoting an investment opportunity can reel in even savvy investors, Nenzou tells Forbes Advisor.
“Scammers have started using AI to create very realistic videos that seem to be from well-known celebrities or other well-known figures promoting certain investment schemes. It makes it hard for the average person to know what is real or fake,” she says.
“The best thing to do is to have a zero policy against getting investing advice from celebrities in the first place especially when they are not established investment experts.”
Disturbingly, scammers are also combining AI-generated video with other commonly used tactics, such as phishing emails to lend credibility to their schemes.
In February this year, a Hong Kong finance professional was conned after clicking on an email from scammers claiming to be from his CFO, asking the employee to transfer money into several bank accounts.
While the employee was suspicious, he verified the request via a video call where he was convinced to arrange payment of $39 million AUD. However, he was the only ‘real’ person on the call—the rest were scammers using deepfake technology to impersonate his superiors.
Reports to Scamwatch show Australians lost $293.2 million on investment scams in 2023—more than seven times the losses of the next-highest category of romance scams
Professionally branded fake websites
Nenzou said scam websites and marketing materials used to look “a bit off” with poor formatting and grammatical errors, but now you need to take more than a cursory glance to see the signs of a scam.
“Unfortunately, scammers have levelled up and are now creating very professional looking websites with well-known, established brand names on all the promotional materials, such as one of the big four banks for example,” she says.
“Some of these materials look exactly like the materials from your own bank or your super fund, which makes it very difficult to know if they are legitimate. In this case if you get unsolicited investment opportunities from well-known established companies it is recommended to go to the public website of the company and call them directly on their public number to ask about the investment opportunities. Do not use the contact details given by whoever has approached you.”
Fake scam websites don’t always mimic an organisation you know. Some professionally presented scam sites claim to be legally run trading and investment platforms—many offering high-risk products like foreign currency exchange derivatives and cryptocurrencies.
According to the ACCC, deepfake ads online will often lead to fake investment platforms and trading apps where people are prompted to create an account and deposit funds—the scam is revealed when they seek to take their ‘profits’.
ACC Deputy Chair Catriona Lowe said: “We know of an Australian man who lost $80,000 in cryptocurrency after seeing a deepfake Elon Musk video interview on social media, clicking the link and registering his details through an online form.”
“He was provided with an account manager and an online dashboard where he could see his investment supposedly making huge returns. But when he tried to withdraw the money—he was locked out of his account.”
Red Flags To Look For Online
The first measure to protect yourself from losing money to investment and finance scams is to be aware of what a scam can look like. For inexperienced investors, Wadzi Nenzou has three tips to ‘sense-check’ whether an offer is legitimate or not:
Unsolicited approaches
Pay attention to how a potential investment or offer comes onto your radar. Did you do your own research through credible sources or based on your investment plan? Or did you receive an unexpected phone call, email, text message, social media message or even someone physically knocking on your door?
“Scammers usually push into your world in some way without an invitation so if it was unsolicited there is a very high chance it is a scam or at the very least not a great investment to begin with,” Nenzou says.
“When you’re approached by some random person or company without any prior relationship, especially with an ‘exclusive grab it now’ offer, it’s a major red flag and you might be dealing with a scam.”
Urgency
Nenzou warns that scammers will often push you to invest ASAP via persistent messages—and this sense of urgency is another big red flag.
“If you are not given time to do your due diligence and you feel hurried, then it’s very likely a scam. Most genuine investments do not come with a short expiry time,” she says.
“Trust your gut here—if you feel pressurised and feel like the people are using aggressive tactics to get you to invest then they are most likely scammers trying to capitalise on a fear of missing out.”
Pay attention to how a potential investment or offer comes onto your radar. Did you do your own research through credible sources or based on your investment plan? Or did you receive an unexpected phone call, email, text message, social media message or even someone physically knocking on your door
Sounds too good to be true
Don’t let the temptation of sizeable wealth convince you of unrealistic claims. Offers that guarantee high returns with low-to-no risk are likely not legitimate.
“That is not how investing works. The higher the potential return the higher the risk and the lower the risk the lower the potential return,” Nenzou adds.
“Anyone who says they will offer you something different from that is very likely a scammer. This promise is used to entice people looking for get-rich-quick schemes.”
Common Scams Targeting Australians
Here are the most common scams targeting Australians in recent years.
‘Side Hustle’ Job Ad Scam
Scamwatch said jobs and employment scams grew the fastest of all scam types in 2023, leading to losses of $24.7 million. The fake job ad claims to be offering a work-from-home side hustle where people can earn extra income. The catch is, you’ll be asked to pay money to access the opportunity.
Ads for these fake jobs often appear on social media or are sent via WhatsApp messages, and are rigged to look like they’re coming from established brands like department or online stores, hotels, and streaming services. The fake job typically involves being paid via crypto to ‘boosting’ a website’s product ratings or reviews through an online platform/app.
To start completing tasks, you’re asked to ‘invest’ money—a clear sign you’re being scammed. Forget the promises of being paid back or earning commissions—Scamwatch advises that you never send money or make up-front payments.
Sporting and Concert Ticket Scams
Trying to secure tickets for popular events creates an opportunity for scammers.
In 2023, the success of the Matildas during the FIFA Women’s World Cup, saw sports fans targeted. The National Anti-Scam Centre issued a warning prior to the semi-finals in August, after receiving reports of scams targeting Matilda’s fans on social media.
In 2024, Taylor Swift fans have come into scammers’ sights as Swifties tried to secure tickets to Swift’s Australian dates during her Eras Tour. Over 270 people were scammed by trying to buy fake tickets to see Tay-Tay through social media, according to Scamwatch.
Scammers may post they have tickets available for sale on fan pages, or even in response to individuals looking for tickets. Consumers may also be sent direct messages from scammers claiming to have tickets—which may appear to be from a person known to you, but is actually an account hijacked by a scammer.
This type of scam was also found during the previous AFL Finals season and the Boxing Day Test.
Ultimately, the rule of thumb is that if it seems to good to be true, it probably is. Stick with trusted resale sites such as Ticketmaster and Tixel, rather than Facebook groups or DMs.
Optus Outage Scam
Optus experienced a large outage in mid-November 2023, with its services down for 13 hours. Now authorities are warning customers about a text message preying on Optus users who are hoping for compensation due to the inconvenience.
The National Anti-Scam Centre posted an image of the scam in which a text pretending to be from Optus tells recipients to click on a link that will provide them with compensation.
“Hi there, we apologise for yesterday’s network outage,” the malicious text reads. “We are offering compensation for all customers impacted. Apply here.”
Scamwatch warned against clicking on the link, telling anyone who receives it to ignore and delete the message.
Loyalty Point Scams
One of the most recently detected scams involves targeting customers of loyalty point programs of well-known Australian companies such as Qantas, Coles and Telstra, according to a Scamwatch alert.
In the four months leading to July 2023, 209 reports to Scamwatch were recorded involving the loyalty point scheme.
Customers receive a text message or email stating their loyalty points for a rewards program are expiring, with a link to a fake website encouraging customers to log-in and/or provide credit card details to access and use loyalty points.
Scammers then steal the customers’ points by stealing the login information alongside other personal data that can be used on more platforms to commit identity fraud.
Bank Impersonation Scam
There have also been alarming reports made recently of Australians losing their life savings due to a highly sophisticated “impersonation scam” according to Scamwatch.
The scammers have been using new technology that makes calls appearing to come from a bank’s legitimate phone number, or by sending a text message that appears in the same SMS conversation thread as previous, genuine correspondence from an individual’s bank.
“We are incredibly concerned about bank impersonation scams because they can be so convincing, they are very hard to detect,” ACCC Deputy Chair Catriona Lowe said.
“What’s equally worrying about this particular scam, is that it is emptying every last cent out of victims’ savings accounts, with losses averaging $22,000 and more than 90 reports of losses between $40,000 and $800,000. This causes both financial and emotional devastation.”
The bank impersonation scams have occurred with the big four banks as well as smaller financial institutions.
“It is critical to remember that no matter how legitimate the call or message seems, a bank won’t ask you to urgently transfer funds,” Lowe says.
Consumers are advised to hang up the phone if contacted and call the bank back on their legitimate number to verify the request. They should also refrain from clicking on any links in text messages.
Superannuation Scams
As the cost of living crisis continues, cyber criminals are cashing in on unsuspecting Australians looking to make–or save–some extra coin.
A common scam targeting Australians is one related to superannuation, with promoters claiming to be able to help Aussies access their super funds early. To do so, the scammer tells the target that they will create a self-managed super fund on behalf of the individual, from which they will then be able to access and withdraw funds.
The scammer encourages Australians to accept the deal in order to access super that could then be used to pay for personal expenses and combat the cost of living crisis: such as paying off credit card debt or making additional contributions to mortgage repayments.
There are severe consequences for accessing your superannuation early through illegal activity, so the ATO urges Australians to check that any financial advisor is properly licensed before acting on advice.
To find out more, read our guide on when you can legally access your super early.
Black Friday, Cyber Monday, and Christmas Shopping Scams
Around major online shopping events like Black Friday and Cyber Monday, Scamwatch warns the public to watch out for scam websites impersonating high-profile Australia retailers.
“The National Anti-Scam Centre has detected a concerning increase in the number of reports of fake websites that look like genuine online retail stores belonging to many big-name, high-street brands,” Scamwatch said.
As of November 27 2023, there were already been a total of 2,760 fake online stores reported—resulting in losses of more than a million dollars.
“In total, online shopping scams cost Australians over $6.2 million, between 1 January and 30 September, 2023,” Scamwatch reported.
It’s an essential consumer warning, considering Australian consumers were expected to spend an estimated $6.36 billion on the BFCM weekend alone.
“Scammers are opportunistic criminals who will try to take advantage of people doing their Christmas shopping online during the upcoming Black Friday and Cyber Monday period,” ACCC Deputy Chair Catriona Lowe said.
“We have seen an alarming increase in reports of fake online shopping website scams, which use the latest technology to look like genuine, well-known Australian fashion and footwear labels.
“As an alternative, consumers may wish to familiarise themselves with the site addresses of their favourite brands and navigate there directly or scroll down the search results to ensure they find the real site.”
Anti-Scam Measures Underway In Australia
The United Kingdom has instituted a regulatory change that will oblige financial institutions to reimburse scam victims from October this year, a move being praised by cybersecurity experts. It seems Australia will not follow suit—despite a 2023 ASIC report into scam prevention measures of the four major banks that found bank customers are overwhelmingly the bearer of scam losses (96%).
However, the pressure is on for the Australian Government and private industry to do more to protect consumers. Recent moves to combat scams include:
- Crackdown on fake investment scam websites: Flexing new scam website takedown capabilities it gained in July 2023, ASIC revealed in March 2024 that it had knocked out more than 3,500 fraudulent sites. ASIC Chair Joe Longo said: “Cost of living issues mean more Australians are looking for ways to make ends meet and scammers are only too happy to try and take advantage. That’s why ASIC is stopping investment scams at the source of their promotion, removing them from the internet before they can lure in unsuspecting consumers.”
- Mandatory industry code proposed: In November 2023, the Australian Government released a consultation paper seeking feedback on a proposed mandatory industry code for the private sector to fight scams. The code would target banks, telecommunications providers and digital platforms like Facebook, imposing obligations to prevent, detect, disrupt and respond to scams.
- Banks partner on ‘name-checking’ technology: Late last year, Australian banks announced they would work together to combat scams by changing their procedures to ensure more thorough ‘name-checking technology’ is embedded in everyday transactions. The initiative—which is being led by the Australian Banking Association (ABA) and Customer Owned Banking Association (COBA)—is called the “Scam-Safe Accord”. The Scam-Safe Accord will include six measures from limiting payments to high-risk channels and alerting customers to potential scams. Australian banks will also invest in a major expansion of intelligence sharing across the sector, and implement stronger anti-scam strategies. In a press release, ABA and COBA said the Accord is a “comprehensive list of anti-scam measures” across the entire industry. “At the heart of the Scam-Safe Accord is a $100 million investment by the industry in a new confirmation of payee system to be rolled out across all Australian banks,” the statement said.
- Corporations commit to cyber threat-blocking: Major Australian corporate companies and government agencies have joined forces to work together on threat blocking measures as part of a new National Cyber Intel Partnership, the Sydney Morning Herald reported. Westpac, Telstra and Woolworths are among a dozen companies devising a pilot program jointly with the National Cyber Security Coordinator, with the aim of more companies—including telecommunications giants, banks, internet service providers and other major corporations to join in the near future. Home Affairs Minister Clare O’Neil told SMH the cybersecurity challenges Australia faced were enormous, and the partnership with industry was about “stopping hackers in their tracks”.
- National Anti-Scam Centre launched: The National Anti-Scam Centre, which sits within the ACCC, was launched in July 2023. The new centre will bring together experts from the government, the private sector, law enforcement and consumer groups to make Australia a harder target for scammers, an ACCC spokesperson told Forbes Advisor Australia. “The centre will tackle harmful scams and work with others to find new ways to stop scammers from reaching Australians and taking their money or personal information,” the spokesperson said.
Two Changes You Can Make Today
Being aware of the threat of cyber hackers and scammers is the first step to protecting yourself from falling victim. By understanding the consequences scammers can have on you and your finances, and how seductive and sophisticated they can be, you are better equipped to boost your own cyber security measures, Hankin explains.
He recommends the following easy-to-enforce practices that all Australians should implement to keep themselves safe:
Use Two-Factor Authentication (2FA)
Passwords simply aren’t enough anymore, Hankin says. With one in three Australians having their passwords compromised, 2FA is now a necessity to stay protected online. According to Google research, 2FA blocks 100% of automated email attacks, 96% of bulk phishing attacks, and 76% of directly targeted attacks.
When it comes to using 2FA, Hankin also recommends that you should use authentication apps rather than having codes sent to your mobile phone. This will ensure you do not fall victim to sim card hacking, either.
Strengthen Your Passwords
A 2020 Verizon Data Breach Report found that the average person has more than 100 passwords to remember, and that 81% of data breaches use stolen or cracked passwords–being passwords that are easily guessed due to their weakness.
Hankin recommends Australians should use the “4+1 rule”: being four unrelated words and a number. Note that you cannot use personal words such as your children’s names to create this phrase, as if a cyber criminal had your personal information, that password would be compromised.
Instead, the example Hankin uses is “Chickenarroworangesky4”, stating that the four-word phrase needs to be hard to guess but easy for you to remember–rather than a password created by a jumble of many different letters, numbers and symbols.
“A long password is strong,” Hankins says. “A complex password is crazy”.
For more details on different ways you can keep yourself safe online, read our guide here. You can also read more about creating safe passwords in our guide to password protection.
Keep Up To Date With the Latest Scams
The Australian Government website Scamwatch and the National Anti-Scam Centre regularly release reports on scams that are affecting the Australian public. When new scams are detected, Scamwatch updates its news releases and also encourages those who encounter scams to report them here.
No matter the type of scam, Australians can find themselves in daunting situations, with their money or identity stolen. While governing bodies continue to work to improve cybersecurity measures against scammers, the Australian public still need to be both cautious and vigilant to avoid falling victim.
Frequently Asked Questions (FAQs)
What are the most recent scams in Australia?
As of early 2024, the most recent scams Australians have reported are fake job scams, ticket scams, romance-baiting, bank impersonation, and loyalty scheme scams.
Ticket scams have been more frequent as of late due to Taylor Swift’s Eras Tour and large sporting events such as The Matildas playing in Fifa Women’s World Cup Semi Final. Scammers create fake tickets to sell online to unsuspecting fans hoping to attend the event.
Are there Australian crypto scams to be aware of?
Yes, the cryptocurrency industry is rife with scams due to its digital and decentralised nature. Crypto scams can present themselves in many different ways, with investors urged to stay vigilant in their cryptocurrency trading to avoid falling victim.
Here is a list of five common Australian cryptocurrency scams to be aware of and how to protect yourself from them
How do I report a scam in Australia?
If you have encountered a scam or any type of fraudulent activity, the ACCC urges you to contact Scamwatch and report the scam. This is easily done online through the Scamwatch website, where you are required to fill out a form and provide details about what the scam entailed: from how you were contacted to what type of scam it was.
By reporting the scam, you help grow the Scamwatch database and their ability to inform the wider public about the most common scams currently targeting Australians.