Have you had issues with your internet recently? Who hasn’t! A client told us of a call he received recently from a ‘NBN provider’ asking him if he had issues. It just so happened he was having problems and thinking this guy may be able to help, he allowed the ‘provider’ to access his computer remotely. Fortunately, he became suspicious when they began to search his files and shut the conversation and the remote access down before the scammer succeeded in getting the information he was after. These people are after your bank details, home address and personal details to use elsewhere. They can create havoc in your life, so it is best to be forearmed.
It’s a sobering fact that $176m in funds were lost to fraud or scams in 2020.(1) With 41% of these losses incurred by people aged over 55 and an increase of more than 23% between 2019 and 2020, it is vital that we educate ourselves and our older family members on how to spot frauds and scams. If you feel you may have become a victim, the sooner you reach out to your support network or talk to the The Australian Cyber Security Centre the better your chances of mitigating losses.
The difference between scams and fraud A scam is when someone is tricked into spending their money. People are often ashamed of being caught out by these deceitful people or organisations but as the schemes have become increasingly sophisticated they have become harder to spot. Fraud is when someone’s funds are accessed without their permission and can also be difficult to pick up on.
Examples of scams include offers of IT support, unexpected money such as lotteries or Nigerian scams, investment scams, fake charities and emails claiming to be from the ATO, MyGov and government agencies that require you to pay bills.
Methods of fraud include calls from foreign countries, skimming, card fraud, phishing, malware identity fraud and cheque fraud.
Why are fraudsters and scammers so effective? The reason these guys are having success is that they are manipulative. They play on emotions and may even threaten you. They often paint themselves as experts and can identify and prey on your vulnerabilities.
What to look out for If you receive an offer that looks too good to be true such as an incredible opportunity to make easy money it is often a red flag. So are unrealistic guarantees, calls from unknown contacts, bullying or rushing behaviour and unknown transactions.
What to do if you think you have been scammed If you find you have been scammed the first thing you must do is change ALL your passwords. You will have to create new passwords and order new credit cards. Remember to rely on your trusted support network. This can include financial advisers, doctors, lawyers, family members, accountants, bank staff and carers.
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.
(1) * Source: Australian Competition and Consumer Commission, Targeting scams 2020, June 2021
