If it looks too good to be true, then it probably is. The National Australia Bank received an average of 1500 scam reports every month in 2023. With the emergence of AI, cybercrime is increasingly sophisticated and the need for vigilance can’t be overstated. Scammers are usually after your bank details, home address and personal identification details to use elsewhere. They can create havoc in your life, so it is best to be alert to the red flags, so you don’t become their next victim.
Here are the top scams to look out for in 2024:
TERM DEPOSIT INVESTMENT SCAMS
Fixed term deposits with attractively high interest rates, slick marketing material and ‘professional’ follow up should be looked at with a cynical eye. These scammers impersonate banks or financial companies.
Red flags include someone contacting you out of the blue offering a term deposit or investment opportunity and claims that the investment will beat inflation or provide guaranteed high returns and rates higher than other similar products. Beware of these ‘advisers’ claiming that they don’t need an Australian Financial Services (AFS) licence.
How to protect yourself • Seek independent professional advice from your trusted accountant, lawyer or financial adviser (ASIC registered). • Search up the person or ‘company’ – you may discover others have been scammed before • Get a second opinion from someone you trust. • Search ASIC’s investor alert list • Check the BSB before your transfer money to confirm the name of the payee
AI VOICE IMPERSONATION SCAMS
These are a new version of 2022’s ‘Hi Mum’ scam. While Hi Mum was text message-based, these scams involve a person receiving a phone call from a ‘loved one’ in ‘distress’. The loved one might claim they’ve been beaten up or kidnapped and won’t be freed unless the person sends money.
These scams can be created from as little as three seconds of audio taken from a social media profile, voicemail, or video on a website.
Red flags include unexpected phone calls from a ‘loved one’ in ‘distress’; urgent requests for payment and requests that you not tell anyone else what has happened.
How to protect yourself • If you aren’t sure the caller is legitimate disconnect the call and ring them directly to verify it’s them. • Review your social media profiles regularly. Take the time to see if your profile is locked. Only connect with people you know. • Set up multi-factor authentication on social media to reduce the risk of your profile being taken over.
REMOTE ACCESS SCAMS USING CHAT
There is an emerging trend where scammers set up Zoom calls or web chats with their victims. These scams involve the criminals persuading you to download an app or software onto your computer that allows them access to your computer. Then they find your banking log on details and other personal information. This type of scam is particularly dangerous as you can lose significant amounts of money in minutes.
Red flags include pop up messages on your device saying it’s been compromised and requesting that you call a number where an operator will ask you to download software to ‘fix the issue.’ Another tactic these criminals use is to masquerade as a well-known telco or government agency needing access to your device so they can remove a ‘virus’ or ‘fix an issue.’
How to protect yourself • Never give someone you don’t know remote access to your computer or online bank accounts. • Never share any SMS codes you receive from your bank. • If you are feeling unsure, hang up or delete the text message or email. Contact the organisation through official channels.
QR CODE PHISHING SCAMS
This type of scam involves criminals trying to get you to hand over personal information or download malware so they can steal your money or details. Malicious links are hidden in the pixilated squares of QR codes. They can appear in emails claiming a package hasn’t been delivered or there’s a problem with your account. It allows criminals to target thousands of people at once. These dodgy links can also be hidden in places like parking payment stations, restaurant menus and signs for free public wi-fi.
Red flags include requests to scan QR codes in a text, email or social media message from unknown, untrusted sources; requests to download apps via a QR code scan; and requests for access to your phone or computer camera, microphone and location features via a QR code scan.
How to protect yourself • Be very suspicious of QR codes from people and organisations you don’t know. If unsure, delete the requests. • Look for typos and spelling mistakes in the URL address. • Keep your phone and computer updated with the latest anti-virus software. If you think you have been scammed there are several steps you should take immediately. For more information on what to do the Australian Signals Directorate and Australian Cyber Security Centre have outlined those here.
As financial planners and guardians of your money we take considerable steps to protect your money from cyber threats. An example of this, is when you send us an email requesting a withdrawal, we will always follow it up with you by phone to confirm the request is from you.
It’s always preferable to plan and remember if you do get caught out, we are here to support you.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
