Scams peak during COVID-19

It’s time to keep an even more watchful eye on your bank accounts. Westpac says the number of reported scams has doubled in the past year.

Investment scams are up 180% in the past 12 months. Remote access scams, where you get a fake message that appears to be from a well-known organisation – maybe even your bank, asking for access to your phone or computer, have more than tripled (up 370%) compared to 2020.

According to Westpac, scam victims will lose an average of $3,000. That means crooks could potentially fleece us out of  $3.6 billion – money plenty of Australians can’t afford to lose right now.

It’s no coincidence that scammers have their sights set on Australia. Lockdowns mean we’re spending more time at home and shopping online. Add in tax season, when we tend to be on the lookout for messages about a tax refund, and you’ve got plenty of opportunities for scammers to get a foothold. And they’re using a variety of digital channels to target potential victims including emails (72%), social media (40%), websites (36%) and smartphone apps (33%).

Contrary to popular opinion, it’s not just older age groups that are falling for scams. Westpac says younger Australians were nearly twice as likely to have been targeted during COVID-19, with one in ten under-30s saying they were impacted by a scam in the past year, compared to just 6% of their older counterparts.

As we continue to face into lockdowns, there are steps you can take to stop cyber-crooks in their tracks.

The first step is recognising a scam when you encounter one. Be very suspicious of anyone who contacts you out of the blue asking for access to your devices. If you allow access, you have no way of knowing what they’ll do to your computer. According to consumer watchdog, the ACCC, the most commonly impersonated organisations for remote access scams in 2021 are Telstra and the NBN, followed by Amazon and eBay.

Do not open suspicious texts, pop-up windows or click on links or attachments in emails from unfamiliar sources. Delete them. If you’re unsure, check the identity of the contact through an online search – don't use the contact details provided in the message sent to you.

Make a habit of checking your bank and credit card accounts, looking for unfamiliar transactions. If something looks suspicious, report it straight away.

Above all, be aware of offers that seem too good to be true. If you’re shopping or investing online, stick to services you know and trust. 

Paul Clitheroe is Chairman of InvestSMART, Chair of the Ecstra Foundation and chief commentator for Money Magazine.