Young Australians have been the worst-hit demographic as financial losses caused by job and employment scams skyrocketed by a staggering 259.4% to $9.6 million in 2022, says Scamwatch.
The most damaging scams were perpetrated via social media, where unsuspecting victims were promised easy money while working from home, purportedly for legitimate companies offering 'task-based’ work requiring simple data entry or validation via an app or website.
Surprisingly, the average loss incurred by victims was an astounding $14,963, with a median loss of $3,150 with the mode of payment to scammers primarily being in cryptocurrency.
Australian authorities have received more than 500,000 reports of scams in 2022, resulting in reported losses of more than $3.1 billion, according to a report compiled by the Australian Competition and Consumer Commission.
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— Australian Cyber Security Centre (@CyberGovAU) April 26, 2023
How does it work?
A significant number of people fell prey to scammers who contacted them through social media ($3.2 million) or mobile applications like WhatsApp ($3.2 million), with payments being made mostly via cryptocurrency ($4.8 million) and bank transfer ($3.4 million).
The scammer would then ask for account top-ups via online trading platforms and demand more money to enable the withdrawal of large sums.
According to Scamwatch, the average job scam victim is a young person aged between 25 and 34, living in NSW or Victoria and hailing from a culturally and linguistically diverse community.
The scammer usually contacts them via WhatsApp or social media and encourages them to communicate through the former.
The victim typically remains in the scam for an extended period, paying the scammer via cryptocurrency.
How can I protect myself?
In order to protect yourself from falling prey to job and employment scams, it's crucial to remain vigilant and take proactive measures to safeguard your finances. Here are some steps you can take:
- Research the company thoroughly: Before accepting any job offers, make sure to conduct a thorough background check on the company. Check their website, social media profiles and other online platforms to ensure that they are legitimate and trustworthy.
- Beware of high-paying jobs with low requirements: If a job offer seems too good to be true, it probably is. Scammers often lure victims with promises of high-paying jobs that require little to no experience or skills.
- Do not disclose personal information: Be cautious of anyone who asks for personal information such as your social security number, bank account details or credit card information. Legitimate employers will not ask for such information during the initial stages of the hiring process.
- Avoid payment via cryptocurrency: While cryptocurrency may seem like a convenient mode of payment, it is also a popular tool for scammers to evade detection. Avoid making payments via cryptocurrency and opt for safer modes such as bank transfers or credit cards.
- Report suspicious activity: If you come across any suspicious job offers or encounter any fraudulent activity, report it immediately to the relevant authorities. Reporting such incidents can help prevent others from falling victim to the scam.