Scams and cybercrime have infiltrated our digital lives, transforming them into a perilous landscape. From the incessant barrage of spam emails to the unnerving ring of suspicious calls, too many Australians have fallen victim to these digital threats.
Last year, Australians lost a staggering $2.7 billion to scams. This isn’t just a statistic – it represents countless lives upended, savings evaporated and trust shattered. Of real concern is the disproportionate toll on older people.
At COTA Australia, we’ve become acutely aware of the outsized impact scams have on those aged 65 and over. This group was the only demographic to see an increase in losses compared to the previous year. Whether older Australians are more vulnerable to scams is beyond question. It’s a harsh reality we can no longer ignore.
The repercussions extend far beyond finances. For many older people, the fear of falling victim to these scams has become a constant source of anxiety. This stress is added by the rapid digitisation of services and closure of bank branches, leaves many of us feeling isolated and ill-equipped to navigate this new terrain.
We’ve seen some promising moves from the federal government to address this scourge. The new mandatory industry codes and the Scam-Safe Accord are steps in the right direction. But let’s be clear – they’re just the beginning of what needs to be a comprehensive, nationwide response to this crisis.
We need more than incremental changes when we’re facing a tidal wave of increasingly sophisticated scams. The private sector, particularly banks, online platforms and telecommunications providers, must dramatically step up their efforts.
It’s unacceptable that out of $500 million lost through the big four banks, only $21 million was paid in compensation. We need government to address this disparity immediately.
Online platforms should be required to utilise their substantial resources and technology to effectively screen for, and prevent, scams.
Telecommunications providers must implement stronger safeguards against fraudulent calls and messages.
Crucially, all three groups – banks, online platforms and telcos – should be held financially responsible if they fail to take active measures to prevent scams. This approach will mean that the burden of protection doesn’t fall solely on consumers or any single sector.
If these players aren’t taking the necessary preventative actions to deter scam activity, it is crucial for the federal government to intervene. The time for half-measures and voluntary compliance are well past.
We need a combination of common-sense regulations and bold initiatives now to stem this tide of financial exploitation It’s not just about protecting older Australians – it’s about safeguarding the financial wellbeing and digital confidence of all Australians.
Have you or anyone you know been the victim of a scam? Who do you think should be ultimately responsible? Let us know in the comments section below.
Also read: What psychological tactics do scammers use?
