Older Australians lost more money to scams than any other age group, with over-55s accounting for three-quarters of the total value of all scams in the past financial year, according to Bankwest.
The bank’s 2024 Safe and Savvy report shows that although phishing scams – where criminals send an email or text that looks like it comes from a bank or a government agency such as myGov – accounted for nearly 70 per cent of all scams reported, over-55s were more likely to fall victim to investment scams.
Investment scams usually involve cold calls from ‘investment managers’ or use fake celebrity adverts to con Australians into investing in schemes that promise apparent high returns.
Scammers have often used social media to advertise these scams using popular and trusted celebrities such as Richard Wilkins, Scott Pape and David Koch. Earlier this year, Spotlight on Channel 7 reported on a woman who had lost her life savings of $250,000 after clicking on a Facebook advert seemingly endorsed by Mr Koch, a situation the former Sunrise presenter described as “heartbreaking”.
Other common scams affecting over-55s included romance scams, often known as catfishing, where a scammer grooms a victim before requesting financial assistance, and remote access scams, where customers are tricked into giving confidential financial information or downloading malware after receiving a call from scammers posing as customer support agents.
How are banks stopping the scammers?
In response to the growing threats of scams, Bankwest has introduced a NameCheck feature that cross-references account information to warn of any potential mismatches or scams. The Western Australian bank has said since implementing the software at the start of June that more than 12 per cent of transactions have been double-checked for potential fraud.
Bankwest head of payments, scams and fraud Philippa Costanzo said: “Most scams originate outside of the regulated banking system, be that phone calls, fake investment ads on social, and SMS and email, requiring a holistic response from big tech, telcos and banks, focused on scam sources.
“Bankwest has committed to significant investment in its digital channels to support customers in banking safely and securely, but the best defence will always be for customers to stay vigilant and informed of the threats.
“We encourage customers to remember three simple steps – stop, check, and reject – to ensure they pause and think before acting, check with a trusted contact or organisation, and reject any contact they’re unsure about,” Ms Costanzo added.
“The most important rule for customers to remember is to never give out SMS one-time passcodes, even to someone purporting to be from Bankwest, because that is a critical component to protecting your accounts.”
‘Shame’ preventing over-55s reporting scams
The bank’s report also notes that many older Australians are reluctant to report scams because they feel ashamed or embarrassed, something the Australian Communications Consumer Action Network (ACCAN) is encouraging victims to overcome.
“Share a story, stop a scam highlights the importance of speaking up about our experiences, to reduce stigma and shame that is wrongly attached to becoming the victim of a scam,” said ACCAN CEO Carol Bennett.
“I encourage everyone to share their stories to help protect our community from these growing threats.”
According to the federal government’s Scamwatch service, 30 per cent of Aussies don’t report scams out of a sense of shame, which can hinder the efforts of anti-fraud bodies to identify and tackle trending scams.
What are the top 10 financial scams affecting Australians?
1. Phishing scams
Phishing scams increased 129 per cent in the past financial year. They lure victims via emails or texts that appear legitimate. Scammers frequently pose as banks or government agencies, attempting to steal personal or financial information. We recently reported on an increase in myGov-related scams at tax time.
2. Investment scams
These deceive individuals into fake investment schemes. These scams promise high returns with little risk, often leading victims to lose their savings when they try to pull their money out. These scams are often promoted using fake endorsements from celebrities.
3. Remote access scams
Remote access scams accounted for 11 per cent of all scams in Australia. They involve fraudsters convincing people to provide access to their computers, claiming to be IT support. They then steal personal information or install malicious software.
4. Romance scams
Romance scams are particularly distressing, as they exploit emotional connections. Scammers build relationships online, often over weeks or months, before requesting money for supposed emergency situations.
5. Online shopping scams
With the rise in online shopping, scammers set up fake websites or listings on sites such as Facebook Marketplace to steal money and personal information. These scams often involve too-good-to-be-true deals.
6. Lottery and competition scams
Victims are informed they’ve won a lottery or competition they didn’t enter. To claim their prize, they’re asked to pay fees or provide bank details.
7. Government impersonation scams
Scammers pose as government officials, threatening legal action or fines unless payments are made immediately. These scams often use fear tactics to elicit quick responses.
8. Tech support scams
Fraudsters impersonate tech support from reputable companies, claiming there’s a problem with your device. They offer to fix the issue remotely, but instead, steal personal information.
9. Charity scams
Charity scams exploit goodwill, especially during crises. Scammers set up fake charities or pose as existing ones to misappropriate funds intended for good causes.
10. Banking scams
Banking scams often involve fraudsters posing as bank representatives to convince individuals to transfer money or share banking details. These can occur via phone calls, emails or texts.
How to spot and avoid common scams
While institutions like Bankwest are investing in technology to detect and prevent scams, there’s no substitute to being sceptical and vigilant. Trust your gut if something doesn’t feel quite right.
If you suspect you’re speaking to a scammer or think your accounts may have been compromised, hang up or stop all contact and speak to your bank straight away.
There are a few ways you can sense check if something could be a scam. These include:
- Use Google or LinkedIn to check the identity of the person or entity contacting you. Check if they’re using official contact details from legitimate sources.
- Don’t share personal or financial information if you didn’t initiate the contact in the first instance.
- Look for anomalies in email addresses or website URLs that might indicate a spoofed site. These often include small spelling errors. Again, Google is a good friend here to check if the website URL matches the official website or email.
- Ensure your computer and mobile devices have up-to-date security software.
- Financial institutions and government agencies won’t ask for PINs or passwords. It’s a big red flag if you get asked.
Have you been scammed by any of these methods? What are your top tips for staying safe? Let us know in the comments section below.
Also read: myGov hackers stealing data through ‘side entrance’: report
Bankwest did not apply there rules in my case. Money was withdrawn from my TAB account into an account with Bankwest under a fictitious name. How can an account be opened and operated without proper I.D.
Last month (August) I received 16 Phishing Emails, and since the 1st of July, 22 ATO/MyGov Emails. I have reported ALL of them to Scamwatch and/or the ATO/Services Australia Scam Reporting Portals.
Investment scams, I think that the reason for the increase is:-
A large number of Retirees are being squeezed financially and are looking for a way, anyway, to get additional income “just to make ends meet”, and survive !!!
I have received emails from “Bunnings”, telling me I’ve won a toolkit. When you look at the email address of the sender, you have to laugh, it is so stupid an arrangemnet of characters. I just delete it. Always look at the address of the sendder, that is the first line of checking.