Been scammed? Here’s how to rebuild your finances

Have you been scammed? You are not alone.

The figures are staggering. According to Scamwatch, for the year 2023-24 Australians lost more than $2.7 billion in scams, and investment, romance and phishing scams were the top traps.

The emotional damage can be long-lasting, but there is a lot you can do to minimise the financial damage.

Sadly, as so many others have been there before, there’s plenty of guidance out there to get you back on track. 

Financial adviser Helen Baker says that if you have been scammed it’s important to act fast. 

“While avoiding scam losses in the first place is obviously best, if you do fall victim to one, it is really important to act fast and not let emotions override your thinking. Because failing on both counts could cost you even more,” Ms Baker says.

“Many people feel shame and embarrassment after realising they have been scammed. But you shouldn’t. You did nothing wrong; you are the victim of a crime. 

“Not only are such feelings bad for your mental wellbeing, but they also often stop people reporting the scam or taking action to avoid further losses.”

Ms Baker says to put emotion aside and approach the issue like any money matter, logically and methodically.

She has a five-step approach to get you back on track. 

Step 1 – Try to recoup your stolen money

Report the scam immediately. Contact your bank or card provider to stop the transaction from being processed. Notify the company or marketplace where it occurred – they may have options to reverse the payment or for you to claim compensation for fraud. 

Also inform the ACCC’s Scamwatch and police if relevant, which may aid in tracking down the scammer and will help them alert the wider public on what to look out for. 

Unfortunately, the money is likely gone for good, but prompt action may just help you get some or all of it back. 

Step 2 – Secure your accounts from further thefts

Once scammers have found a way to steal money, they often go back to try for more. Don’t let them! 

Freeze or cancel affected debit and credit cards, accounts. Change and strengthen all your passwords. Set up two-factor authentication if you haven’t already done so. Remove any suspicious applications on electronic devices. 

Double-check the registrations of any business, adviser or tradesperson before engaging their services. Regularly check your superannuation, investments, etc, to monitor for any inconsistencies.

Step 3 – Safeguard your cash flow

Don’t multiply your losses by racking up new debts to cover the stolen money. That means limiting the use of credit cards, payday lenders and Buy Now, Pay Later schemes. Consider paying with cash instead to help you stick to a budget.

If you have lost everything, register with Centrelink for income support. You may also be able to apply for hardship provisions with your bank, phone and energy providers and other essential services.

Step 4 – Get reputable advice

Legal advice may be able to get you out of bogus contracts, such as loans or phone plans, and help you in the event your personal information has been stolen (which can be used in various ways to steal money). If you can’t afford a lawyer, there are free alternatives such as Legal Aid or Community Legal Centres. Specialist services such as the Women’s Legal Service may offer support where partner coercion or domestic abuse is involved.

Accounting and financial advice may also help you navigate assistance options and longer-term recovery efforts.

Step 5 – Rebuild your finances

Your ability to rebuild your finances after a scam will depend on a range of factors, including how much was lost plus your age and circumstances.

You could seek to increase your earnings and/or cut your spending by tweaking your household budget, delaying retirement, or temporarily taking a second job to boost your income. 

Another option is to make your remaining finances work harder than before, such as adjusting your investment strategies (e.g. changing your risk weightings or selling assets) including within your superannuation or accessing equity in your home.

If you’re a self-funded retiree, you may now qualify for a part or full pension if your scam losses push your total assets below the means test threshold.

“Ultimately, the most important thing when dealing with the fallout from a scam is to look after yourself and protect what you have left,” Ms Baker says. 

“Scammers have already taken off with your dollars. Don’t let them steal your sense too!”

Have you been scammed? Did you get any money back? Why not share your experience in the comments section below?

Also read: Over-55s lose more money to investment scams than any other type of fraud

Jan Fisher
Jan Fisherhttp://www.yourlifechoices.com.au/author/JanFisher
Accomplished journalist, feature writer and sub-editor with impressive knowledge of the retirement landscape, including retirement income, issues that affect Australians planning and living in retirement, and answering YLC members' Age Pension and Centrelink questions. She has also developed a passion for travel and lifestyle writing and is fast becoming a supermarket savings 'guru'.

1 COMMENT

  1. Last night I discovered that a company I was dealing with were scammers, from the bank’s point of view. The bank still held the money, not the company now. The question arises: how to identify if the company is a legit business? They have ABN, ACN etc but no prospectus registered. Lots of due diligence but i want a better deal than the usual Big 4. Will the bank investigate to prove they were scammers and take them to court from fraud? Unknown. This is not the realm of Scamwatch, so it is up to the customer and bank to do so. We’ve heard about phoenixing-they could conceivably reinvent themselves and try some more of their antics. That is where the Attorney-General needs to step in and lock them up forever. Happy to discuss further.

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