Stay Safe: Tips to Avoid Scammers

This Scams Awareness Week (26 to 30 August), a University of South Australia (UniSA) expert in financial gerontology is urging Australians to recognise the signs of potential financial scams.

UniSA's Dr Braam Lowies, whose research focuses on financial capability issues in the aged population regarding financial, housing and investment decisions, says being scammed can cause people significant distress and financial hardship.

The Australian Competition and Consumer Commission (ACCC's) latest Targeting Scams report revealed that although scam losses dropped by 13% in 2023, more work is needed as Australians lost a total of $2.7 billion to scams.

"Scammers can deliberately cause feelings of shame and guilt and they can create and take advantage of different situations, including if someone is busy, scared or stressed," Dr Lowies says. "Scammers will also make their victims feel isolated from support networks, creating a false sense that the victim is entirely reliant on them. People are less likely to report scams when they feel ashamed, but it's important that we share our experiences to help others feel confident to do the same."

Scammers are financial criminals who use sophisticated technology and psychology to manipulate or deceive people into giving them their money and personal information. Common scams including romance scams, phishing emails and texts, identity theft and invoice fraud.

Scams Awareness Week is the National Anti-Scams Centre's annual scam awareness raising campaign, encouraging Australians to speak up, share and report scams. This year's theme is 'Share a story, stop a scam'.

The Targeting Scams report revealed Australians reported more than 601,000 scams to organisations including Scamwatch, ReportCyber, the Australian Crimes Exchange, IDCARE and ASIC in 2023, an 18.5% increase on 2022. Investment scams continued to cause the most harm, followed by remote access scams and romance scams.

Older people suffer the greatest harm at the hands of scammers, with losses for people over the age of 65 increasing by over 13.3% in 2023 to $120 million. Text messages were the most reported contact method, but scam calls resulted in the highest reported losses at $116 million, followed by contact via social media at $93.5 million, a 16.5% increase on 2022.

Dr Lowies says older people are attractive targets for financial criminals because they have access to retirement savings and superannuation and may own substantial assets. This susceptibility is increased by a lack of openness in talking about finances by this age group.

"Older people might also have less experience in the digital space and also less adaptive to new technology such as artificial intelligence and the threats these sorts of advancements can pose. We must also acknowledge that some of us might experience age-related impairments as we get older, and this can contribute to vulnerability in the digital space too."

A study by ANZ and UniSA in 2022 found that many older Australians are not informed about online security, despite 81% of people over 65 using internet banking. The Exploring Digital Capability In Older Australians report highlighted concerns about cyber security and ongoing changes to software, websites and digital services as barriers.

Although participants were aware of online fraud and spam, they were less sure about viruses, phishing, cyber security and hacking. Almost 30% were unsure how to protect their privacy online.

"Anyone who has a mobile phone, or accesses the internet or social media, is vulnerable to cyber security threats. Education and training are the keys to becoming cyber savvy and safe from scams," Dr Lowies says. "It's also important to have more conversations around cyber security and scams and help break down the social barriers and stigma.

"If you have identified or encountered a scam, it's important to share your story with someone - a friend, family member or colleague. This could prevent someone else from having their money or personal information taken. The more stories we hear the better equipped we are to protect ourselves."

Follow these steps from the National Anti-Scam Centre if you think you've been scammed/are caught in a scam.

  • Stop - don't give money or personal information to anyone if you're unsure. Say no, hang up and delete. If a scammer has taken your money or personal details, contact your bank or card provider to immediately report the scam and stop any transactions.
  • Check - scammers pretend to be from organisations you know and trust - like myGov, your bank, the police or the government. If you're unsure, call the official phone number of the organisation to check.
  • Report - the more we talk, the less power they have. Report scams to scamwatch.gov.au
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