In the most recent incident of card fraud: the gross amount withdrawn or used for all incidents was $2.2 billion while the net loss after any reimbursements paid for all incidents was $476 million. The median amount withdrawn or used per incident was $200, A further 514,300 (2.5 per cent) experienced some kind of scam, and just under 200,000 (1.0 per cent) were victims of identity theft.
The proliferation of the digital world has opened the door for more scans, so we need to be careful with the information we share, the links we click, and monitor statements to look for fraudulent transactions. This is another area where financial education needs to be enhanced, in school and beyond, as many people are too easily caught. Its important to be digitally smart. Maybe cash is safer and easier to manage. Worth thinking about in the context of the current drive to removed cash all together.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Please be careful people, and ignore those “get rich quick” messages across social media and online channels. If it is too good to be true, its a scam.
Go to the Walk The World Universe at https://walktheworld.com.au/
This is an edited version of our live Q&A as I discuss the latest trends in Crypto, and try to tease out the scams from the real deal. https://walktheworld.com.au/ .
A new report from ACCC shows that Investment scams reported to Scamwatch have cost Australians over $70 million in the first half of this year, more than the total losses reported to Scamwatch for all of 2020, and projected losses are set to reach $140 million by the end of the year.
“More than half of the $70 million in losses were to cryptocurrency, especially through Bitcoin, and cryptocurrency scams were also the most commonly reported type of investment scam, with 2,240 reports.”
The ACCC says that Australians are set to lose a record amount to scams in 2019, with projections from losses reported to Scamwatch and other government agencies so far expected to exceed $532 million by the end of the year, surpassing half a billion dollars for the first time.
This year’s National Scams Awareness Week
(12-16 August) theme is “too smart to be scammed?” and the ACCC, along
with over 100 campaign partners from government and industry, is urging
consumers to test their scams knowledge and refresh their scam
protection and detection skills.
“Many people are confident they would never fall for a scam but often
it’s this sense of confidence that scammers target,” ACCC Deputy Chair
Delia Rickard said.
“People need to update their idea of what a scam is so that we are
less vulnerable. Scammers are professional businesses dedicated to
ripping us off. They have call centres with convincing scripts, staff
training programs, and corporate performance indicators their
‘employees’ need to meet.”
Investment scams are one of the most sophisticated and convincing
scams and continue to have the highest losses. Nearly half of all
investment scams reported this year resulted in a financial loss.
These scams are prominent on social media, with ‘Facebook lottery’
scams, the ‘Loom’ pyramid scheme, and cryptocurrency scams particularly
common.
Cryptocurrency investment scams have seen record losses, with reports
to the ACCC alone of $14.76 million between January and July 2019. Many
use social media platforms, fake celebrity endorsements or fake online
trading platforms that are made to look legitimate.
Protection advice
“Our advice is to be wary of ads you see on the internet. Don’t be
persuaded by celebrity endorsements or ‘not to be missed’ opportunities.
You never know for certain who you’re dealing with or whether they’re
credible,” Ms Rickard said.
“If you think you’re speaking to a friend on social media, call them,
or find another way to contact them before acting on any advice that
might result in you giving away your personal details or money.”
Scamwatch also suggests that people check ASIC’s list of companies you should not deal with.
If the company that contacted you is on the list – do not deal with
them, and even if they are not listed, continue researching and speak to
a financial advisor before investing.
Be vigilant on social media, when shopping online and when answering
the phone, and never give anyone who has contacted you out of the blue
your personal details, banking details or remote access to your
computer, no matter who they say they are. It’s best to assume scammers
are everywhere, waiting for you to let your guard down.
“Remember, anyone could fall victim and no one is ‘too smart to be
scammed’. Always ask yourself, ‘could this be a scam?’ and if you’re
ever in doubt, decline the contact or hang up the phone – it’s often the
safest option,” Ms Rickard said.
The ACCC has produced a series of videos with tips and tricks on how to spot a scam, and to test people’s awareness of scams. The full series is also available on YouTube.
Australians are losing more money to NBN scams, with reported losses in 2019 already higher than the total of last year’s losses, according to the ACCC.
Consumers lost an average of more than $110,000 each month between
January and May this year, compared with around $38,500 in monthly
average losses throughout 2018 – an increase of nearly 300 per cent.
“People aged over 65 are particularly vulnerable, making the most
reports and losing more than $330,000 this year. That’s more than 60 per
cent of the current losses,” ACCC Acting Chair Delia Rickard said.
“Scammers are increasingly using trusted brands like ‘NBN’ to trick
unsuspecting consumers into parting with their money or personal
information.”
Common types of NBN scams include:
Someone pretending to be from NBN Co or an internet provider calls a
victim and claims there is a problem with their phone or internet
connection, which requires remote access to fix. The scammer can then
install malware or steal valuable personal information, including
banking details.
Scammers pretending to be the NBN attempting to sell NBN services, often at a discount, or equipment to you over the phone.
Scammers may also call or visit people at their homes to sign them
up to the NBN, get them a better deal or test the speed of their
connection. They may ask people to provide personal details such as
their name, address, date of birth, and Medicare number or ask for
payment through gift cards.
Scammers calling you during a blackout offering you the ability to stay connected during a blackout for an extra fee.
It is important to remember NBN Co is a wholesale-only company and does not sell services directly to consumers.
“We will never make unsolicited calls or door knock to sell broadband
services to the public. People need to contact their preferred phone
and internet service provider to make the switch,” NBN Co Chief Security
Officer Darren Kane said.
“We will never request remote access to a resident’s computer and we
will never make unsolicited requests for payment or financial
information.”
“If someone claiming to work ‘for the NBN’ tries to sell you an
internet or phone service and you are unsure, ask for their details,
hang up, and call your service provider to check if they’re legitimate.
Do a Google search or check the phone book to get your service
provider’s number, don’t use contact details provided by the sales
person,” Ms Rickard said.
“Never give an unsolicited caller remote access to your computer, and
never give out your personal, credit card or online account details to
anyone you don’t know – in person or over the phone – unless you made
the contact.”
“It’s also important to know that NBN does not make automated calls
to tell you that you will be disconnected. If you get a call like this
just hang up.”
“If you think a scammer has gained access to your personal
information, such as bank account details, contact your financial
institution immediately.”
Scamwatch is warning the Australian community to be wary about investment scams, with statistics revealing Australians are collectively losing $4.3 million a month to these scams.
In 2018, more than $26 million has been reported lost to investment scams—already 84 per cent of the total losses recorded in 2017. This represents an average month on month increase in losses of 117 per cent compared to last year.
“The losses to investment scams are horrific. Each week the ACCC receives heartbreaking accounts of people losing hundreds of thousands, and in some cases millions, of dollars,” ACCC Deputy Chair Delia Rickard said.
“Last year, Australians reported they lost $64.6 million to investment scams to Scamwatch and the Australian Cybercrime Online Reporting Network (ACORN). If the current trend continues, combined losses reported to Scamwatch and ACORN in 2018 could be in excess of $100 million.”
“These scams are very sophisticated and the scammers are very convincing. People aged 45–64 are most at risk and make up more than half the reports sent to Scamwatch,” Ms Rickard said.
The vast majority of investment scams are still centred on traditional investment markets like stocks, real estate or commodities. For example, scammers will cold call victims claiming to be a stock broker or investment portfolio manager and offer a ‘hot tip’ or inside information on a stock or asset that is supposedly about to go up significantly in value. They will claim what they are offering is low-risk and will provide quick and high returns.
“Scammers will spend significant time and effort grooming their victims to invest. They will use the right technical language and also offer professional looking websites and documents to convince victims they are legitimate. It’s often only when people try to cash out their investment that they realise their money is gone,” Ms Rickard said.
Two other types of investments where scams are prevalent are cryptocurrency trading and binary options. Cryptocurrency trading scams have grown significantly in the past 12 months and are now the second most common type of investment scam offer pushed on victims.
“The rise in popularity in cryptocurrency trading has not been missed by scammers who are latching onto this new trend to con people. These are similar to any other investment scam: the scammer will claim to have inside knowledge about price movements they will use to make you a fortune. If you invest, your money will quickly disappear,” Ms Rickard said.
“Binary options trading involves scammers pretending they can predict the movements of a commodity, asset or index prices over a short time. They direct you to a website with a login, account details and a trading platform. They appear to put your money into the account and demonstrate a number of successful trades to encourage you to invest greater sums. Then your money begins to disappear and so too does the scammer.”
The clearest warning sign you’re dealing an investment scammer is how they contact you and the promises they make.
“It can be very difficult to tell what is and isn’t legitimate these days. If someone calls, emails or texts you out of the blue with investment advice, don’t engage with them no matter how legitimate they sound. Hang up the phone, or delete the email or text. If you’re searching for new investment opportunities online, don’t always trust what you read. It’s easy for scammers to create professional looking investment websites,” Ms Rickard said.
“Any claims like ‘risk-free investment’, ‘low risk, high return’, ‘be a millionaire in three years’, or ‘get-rich quick’ are also easy tells that you’re dealing with a scammer.”
