The rising threat of scams

Hints, tips and resources on how to identify scams and protect yourself from the rising global threat.

  • 9 August 2019

    Hacker types with face close to laptop

    The Rising Threat of Scams

    According to Scamwatch, over $107 million was lost to scams in 2018 and it looks like this will only continue to rise this year. Nearly two thirds of that $107 million was in investment scams and dating & romance scams alone, which tells us that the scammers have their biggest payday when they prey on our desire for money and companionship. And while the 60+ demographic might be the hardest hit, everyone is vulnerable.

    So, how can we protect ourselves?

    Before we answer that question, let’s define what a scam is. While fraud is any activity that you have no knowledge of, a scam is when you collaborate with the perpetrators in some way; even if you don’t know that you’re doing so.

    Types of scams

    Scams fall into the following categories:

    Buying or selling scams prey on consumers and businesses that are buying or selling products and services. Not every transaction is legitimate.

    Dating & romance scams take advantage of people looking for romantic partners, using emotional triggers to convince their victims to provide money, gifts or personal details.

    Fake charity scams impersonate genuine charities to ask for donations or claiming to collect money after natural disasters or major events.

    Investment scam s offer a fast way to make money, with the scammers inventing all kinds of fake opportunities to prey on their victims’ enthusiasm.

    Jobs & employment scams trick you into handing over your money by offering a “guaranteed” way to make fast money for little effort.

    Threats & extortion scams use any means possible to steal your identity or money, including threatening your life or hijacking your computer.

    Unexpected money scams involve convincing and seemingly legitimate reasons to give you false hope about offers of money.

    Remote access scams try to convince potential victims that they have a computer or internet problem and that they need to buy new software to fix the problem.

    Unexpected winning scams try to trick you into giving money or your personal information in order to receive a prize from a lottery or competition that you never entered.

    According to Scamwatch: “Scams succeed because they look like the real thing and catch you off guard when you’re not expecting it. Scammers are getting smarter and taking advantage of new technology, new products or services and major events to create believable stories that will convince you to give them your money or personal details.”

    Once scammers have your personal information, they can commit fraudulent activities such as using your credit card to make online purchases or opening a bank account.

    Why scams are different from traditional fraud

    While financial loss from fraud is generally covered by the Bank, things are not so straightforward with scams. According to Scamwatch, “If you've lost money to a scam or given out your personal details to a scammer, you're unlikely to get your money back.” In simple terms, if you hand over your personal details to someone or give them access to your accounts, you are legally recognised as having participated with the scammer. While efforts can be made to retrieve your money, a return is not guaranteed.

    Prevention is better than a cure

    While it’s impossible to protect yourself from falling victim to a scam, knowing how scammers work can significantly reduce your risk of becoming a victim. Scamwatch has comprehensive information on how to spot a scam and protect yourself from the growing threat, or you can visit the Teachers Mutual Bank security hub for our hints and tips.

    In general, when it comes to your online safety:

    • Never share your pin number or security codes with anyone
    • Never give anyone remote access to your device
    • Never click on any unsolicited links, articles or emails
    • Do you know the person or organisation who is contacting you, or is there a valid reason for them to do so? If the answer is no, then do not respond
    • Does the offer you’ve received appear too good to be true? If so, there is a good chance it is a scam

    Over the next twelve months, Teachers Mutual Bank will be rolling out a Fraud and Scams Awareness Campaign in alignment with government activity to make sure you have everything you need to help us keep your money safe.

    "The best way to fight fraud is to prevent it, and the best weapon to protect yourself against fraud is knowledge. Education is the key to success when combating scammers and keeping yourself safe."
    Con Nikolaou, Head of Cyber Protection, Teachers Mutual Bank

    Remember, your bank will NEVER contact you asking for your personal or other sensitive information, so DO NOT give this out over the phone or send it via email.

    What to do if you’ve been scammed

    Scammers are becoming increasingly sophisticated in their attempts to steal your money and/or personal details. Even when armed with the best information, it’s still possible that you can fall victim to a scam.

    If this happens or you are concerned that your account has been compromised in some way, please contact Teachers Mutual Bank immediately so we can limit further damage.

    You can also report a scam on the Scamwatch website.

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