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Australian banking customers warned against emotionally manipulative scams

Published 29/11/2023, 02:49 pm
© Reuters.  Australian banking customers warned against emotionally manipulative scams

In a concerning trend across Australia, scammers are increasingly impersonating banks in sophisticated schemes designed to exploit customers' emotions.

Authorities and financial institutions are urging vigilance as these scams become more prevalent, manipulating individuals into making hasty decisions by inciting fear or urgency.

These fraudulent schemes typically involve communication that appears to be from a legitimate bank, urging the recipient to take immediate action.

This can include messages claiming unusual account activity or threats of account closure, designed to provoke a sense of urgency and panic.

By playing on emotions, scammers aim to cloud judgment and prompt quick, often unwise, actions.

Stop, Think, Observe and Plan

The primary mode of these scams involves sending links or phone numbers through emails or text messages, purporting to be from the bank.

When clicked or called, these links and numbers lead to fraudulent websites or operators, who then attempt to extract sensitive information like passwords, account numbers and personal identification details.

Authorities stress the importance of the 'STOP' principle in these situations - Stop, Think, Observe and Plan. This approach encourages individuals to pause and consider the authenticity of the message before taking any action. Key to this is recognising the emotional manipulation at play and resisting the urge to act immediately.

Customers are advised to be particularly wary of any communication that demands urgent action or instils a sense of fear.

Banks and financial institutions typically do not request sensitive information or immediate action through unsecured channels like text messages or emails.

Call bank directly

For those who receive suspicious messages, the recommended course of action is not to click on any links or call back on the numbers provided.

Instead, individuals should directly contact their bank using the official contact details found on the bank's website or other trusted sources.

This precaution ensures communication with the actual institution and not a fraudulent impersonator.

Australian banks are collaborating with law enforcement to address this alarming trend and enhance security measures.

However, the crucial first line of defence remains the awareness and vigilance of customers.

As these scams grow in sophistication, understanding the tactics used by fraudsters is vital.

By recognising the signs of emotional manipulation and verifying communication channels, Australians can protect themselves and their finances from these increasingly prevalent threats.

Read more on Proactive Investors AU

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