How to spot a scam

It's important to know the telltale signs of an online scam - here are nine things to watch out for.

  • 13 March 2019

    This article is for general information only. We have not considered your personal situation. You should consider whether the information is appropriate before acting on it.

    While there are many software options to help keep your computer virus-free, the best tool for scam prevention is education. Being aware of how online scams work and knowing the warning signs can help keep you safe online.

    Cyber security concept with a woman facing the camera

    In general, be cautious if:

    You receive a call or email from someone you don’t know

    If you're contacted by someone you don’t know, do everything you can to verify the identity of the caller. Ask for details only the company will know, such as your contract details, payment details or bank account details. If you're not fully convinced, hang up and call the company directly.

    An opportunity seems too good to be true

    It generally takes a lot of hard work to become rich, but even with a great work ethic it can still take many years to build considerable wealth. Just remember, if it was so easy to make a huge income from the offer, why isn’t the caller using it themselves instead of asking for your money? The golden rule when it comes to spotting a scam is trust your instincts; if a deal sounds too good to be true, it probably is.

    Someone asks you to pay for something in advance

    A lot of websites offer to show you the secrets of making money at home or building a business by “banking on yourself”. The catch is that they don't actually tell you how it works or even if it will work at all. If a site can’t give you clear details about what exactly it's selling with real examples of what you'll be getting for your payment, don’t hand over any money.

    Someone asks you for your personal information

    Phone scammers will use every trick in the book to try and steal your personal data. Never share your personal details with anyone you don’t know, or whose identity you can't validate.

    You feel pressured into buying something or making a quick decision

    If a company uses pressure tactics to make you feel rushed or to feel bad about yourself, walk away. Once you transfer money, it may be too late. Scammers will often try to hurry your decision, while a trustworthy company will always be happy to wait while you make an informed decision.

    Someone asks you to phone a premium, expensive number

    Premium rate numbers are another popular method for taking your money, with scammers tricking you into phoning a number with high charges.

    Contact details are unclear or difficult-to-find

    By supplying vague contact details, it's difficult to contact those involved if anything goes wrong.

    Spelling or grammatical mistakes are common

    It's rare that a legitimate organisation will allow spelling mistakes or grammatical errors to make it into the public domain. If you come across a site or receive an email with a lot of obvious mistakes, it could be a scam.

    Being asked to keep something a secret

    It’s important to discuss any potential agreements with your friends, family or an independent advisor. Asking you to stay silent is a ploy to isolate you from the advice and support you need in making a decision.

    In general:

    • Never download software to your computer from a source that isn't reputable. If a banner pops up to suggest a software update, don't download by clicking on the banner. Instead, close the tab you’re using and open the Vendor’s website to download the software directly.
    • If you’ve been contacted about an investment, check if the company is registered on the ASIC website. If not, it could be a scam.
    • Never give out your details online. Scam emails request personal information such as passwords, your date of birth or bank details, and can use this to take your money.
    • Remember, your bank will never ask you to confirm personal details by clicking on an email link.

    If in doubt, you can always check the www.scamwatch.gov.au website for alerts on current scams. You can also visit our security section for more tips to keep your personal information and money safe online, at ATMs and while shopping.

    Issued by Teachers Mutual Bank, a division of Teachers Mutual Bank Limited ABN 30 087 650 459 AFSL/Australian Credit Licence No 238981 W: tmbank.com.au T: 13 12 21

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