On one side of the coin is financial crime, which is everywhere, and on the other there’s the outrage that financial institutions aren’t doing enough to protect our money.
It seems scammers develop a new way to rip us off every other day. Every time I check my super balance, I’m surprised there is still even money there.
And while some people who get scammed should probably take a bit of personal responsibility, it seems financial institutions are all too willing to wash their hands of the issue.
Keeping super safe
Well, at least one sector of the financial world is stepping up. The Association of Super Funds Australia (ASFA) has developed an initiative to help keep our super safe.
ASFA has announced the launch of the Financial Crime Protection Initiative (FCPI), designed to protect the sector against increasingly sophisticated financial crime.
“Superannuation is the cornerstone of financial security for most Australians. This work will help to fortify our industry, helping it remain resilient in the face of these growing challenges,” said ASFA chief executive Mary Delahunty.
“By working together, we stand a better chance of safeguarding people’s savings and maintaining the trust and integrity of the superannuation system.”
How it will work
ASFA’s FCPI will:
- enhance collaboration and knowledge sharing between funds and critical service providers including custodians, administrators and tech providers
- develop industry-wide frameworks to combat financial and cybercrime
- connect the superannuation sector, relevant government agencies and related financial services bodies
- help make Australians aware of the actions they can take to protect their super and data from scammers.
Australian Competition and Consumer Commission (ACCC) figures published earlier this year showed that while overall the amount of money lost to scams is decreasing, older people suffered the greatest harm at the hands of scammers.
People aged over 65 were the only age group to experience an increase in reported losses. Losses for people over 65 increased by 13.3 per cent in 2023 to $120 million. All other age groups reported a decrease in losses. People over the age of 65 were disproportionately impacted by investment scams. Many reported significant losses to scams resulting from contact initiated on social media.
Targeting older Australians
“Reports to Scamwatch indicate scammers are targeting older Australians with retirement savings, who may be looking for investment opportunities,” ACCC deputy chair Catriona Lowe said.
“We know of a recent case where an elderly woman lost her life savings after seeing a deepfake Elon Musk video on social media, clicking the link and registering her details online.
“She was assigned a ‘financial adviser’ and could see on an online dashboard showing she was apparently making returns, but she couldn’t withdraw her money.”
Protect yourself now
While the FCPI is still in its infancy, there are a few ways to protect yourself now, according to the ACCC.
Stop – Don’t rush to act. Scammers will create a sense of urgency.
Think – Ask yourself if you really know who you are communicating with? Scammers can impersonate others and lie about who they are – especially online.
Protect – Act quickly if something feels wrong. If you have shared financial information or transferred money, contact your bank immediately. Help others by reporting to Scamwatch.
While your money is probably gone for good, reporting to Scamwatch can help the group gather data to track how scammers operate and hopefully warn others of the dangers.
Have you been scammed? Why not share your experience in the comments section below?
Also read: Super scam attempts jump by 200 per cent
