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Australians to lose record amount to scams in 2019, ACCC warns

Australians are set to lose a record amount to scams in 2019, the ACCC has revealed.

Australians to lose record amount to scams in 2019, ACCC warns
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  • Maja Garaca Djurdjevic
  • August 13, 2019
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Projections from losses to scams are expected to exceed $532 million by the end of the year, surpassing half a billion dollars for the first time, the ACCC has reported.

“Many people are confident they would never fall for a scam, but often it’s this sense of confidence that scammers target,” ACCC deputy chair Delia Rickard warned.

“People need to update their idea of what a scam is so that we are less vulnerable. Scammers are professional businesses dedicated to ripping us off. They have call centres with convincing scripts, staff training programs and corporate performance indicators their ‘employees’ need to meet.”

Investment scams are one of the most sophisticated and convincing scams and continue to have the highest losses. Nearly half of all investment scams reported this year resulted in a financial loss.

These scams are prominent on social media, with “Facebook lottery” scams, the “Loom” pyramid scheme and cryptocurrency scams particularly common.

Cryptocurrency investment scams have seen record losses, with reports to the ACCC alone of $14.76 million between January and July 2019. Many use social media platforms, fake celebrity endorsements or fake online trading platforms that are made to look legitimate.

“Our advice is to be wary of ads you see on the internet. Don’t be persuaded by celebrity endorsements or ‘not-to-be-missed’ opportunities. You never know for certain who you’re dealing with or whether they’re credible,” Ms Rickard said.

“If you think you’re speaking to a friend on social media, call them or find another way to contact them before acting on any advice that might result in you giving away your personal details or money.”

Scamwatch also suggests that people check ASIC’s list of companies you should not deal with. If the company that contacted you is on the list, do not deal with them, and even if they are not listed, continue researching and speak to a financial adviser before investing.

“Remember, anyone could fall victim and no one is ‘too smart to be scammed’. Always ask yourself, ‘could this be a scam?’, and if you’re ever in doubt, decline the contact or hang up the phone — it’s often the safest option,” Ms Rickard said.

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