As part of Scam Awareness Week (August 25-29), ScamWatch confirms there has been a 40.5 per cent rise in reports involving money being handed over to scammers, who are specifically targeting vulnerable groups such as people who speak English as a second language.
Australian Banking Association chief executive Simon Birmingham says the evolving and extreme lengths scammers are now deploying to steal money can be difficult to detect.
“Unfortunately, we live in a world where advances in AI-generated video and audio make it possible for criminals to impersonate celebrities, your friends, family members or even your bank,” Birmingham says.
“While AI is a powerful tool for banks and law enforcement to combat scams, it has also become the new weapon of choice for scammers. AI scams sound real, look real and feel real. That’s what makes them so dangerous,” he says.
Scamwatch confirms there has been a 40.5 per cent rise in reports involving money being handed over to scammers.Credit: iStock
Victims stay on call to scammers
ANZ notes a growing trend in scammers coaching customers through prepared scripts or via a call inside the bank branch to avoid detection.
In some cases, victims are instructed to leave their phone in their pocket to allow the scammer to listen while the victim instructs bank tellers to make huge transfers out of their bank account.
“We’ve seen customers actually coming into the branch while on the phone to the scammer, keeping their phone in their pocket so the scammer can listen to make sure they’re answering the questions in the way the scammer has told them to so that the funds are released by the bank,” ANZ scams lead Ruth Talalla says.
Bank impersonation scams are also common. Often arriving by text message, the scam leads victims to believe they need to call their bank’s scam department, leading them to inadvertently call a scammer instead.
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The scammer convinces the victim they are speaking to the bank’s fraud department and are asked to transfer money into a safe account, but unwittingly transfer it to the scammer.
Even if a transaction has been flagged by the bank’s detection teams and the customer is contacted, sometimes the scammer helps the victim avoid fraud detection processes.
She warned customers against misleading banks about how their money is being used.
“They can be very convincing, relying on victims to act quickly so they don’t have time to stop and think about whether this could be a scam,” Talalla says.
Another scam asks victims to leave their credit card in their letterbox with their pin for it to be collected and destroyed, only for it to be used on purchases across Victoria.
Scams don’t discriminate
In one scam, a victim lost more than $11,000 to an online shopping scam involving a fake travel agent. The scammer operated a convincing website and offered a free digital travel assistant service.
After the victim made an airline booking through the website, the scammer cancelled the booking but kept the money. Attempts to contact the agent failed once the scam was revealed.
“Scams don’t discriminate and can affect anyone, which is why open conversations with loved ones and greater awareness are so important.
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“Government, business and individuals all have a role to play in building a scam-aware community and reaching every group, including those who may face extra barriers to understanding or reporting scams,” says Catriona Lowe, deputy chair of the Australian Competition and Consumer Commission.
Nearly 80 per cent of consumers have received scam communications in the past three months and 90 per cent in the past 12 months, according to an Optus survey.
Often, consumers don’t know what to do if they get scammed or who to go to in the first instance to prevent losing money.
If you believe you have been scammed, contact your bank and report it to ScamWatch.
Tips to stay safe from scamsSay no, hang up, or delete suspicious messagesTake time to think before responding to unexpected requestsDon’t let anyone pressure you into immediate actionTrust your instincts if something feels wrongPause before sharing personal informationActivate multifactor authenticationTurn on automatic software updatesUse strong, unique passwordsAvoid public Wi-Fi for bankingBe cautious of unexpected messages or callsCheck sender details carefullyDon’t click on suspicious links or attachmentsReport suspicious messages to your bank
Source: National Anti-Scam Centre, ANZ Bank
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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