Scam artists have been preying on Australia's most vulnerable communities, leading to a record number of losses in 2022, according to a recent report by the Australian Competition and Consumer Commission (ACCC).
The report found that individuals with disabilities were hit the hardest, with a staggering 71% increase in financial losses totaling $33.7 million.
Additionally, Indigenous Australians reported losses of $5.1 million, a 5% increase from the previous year, with a median loss of $754.
Worryingly, people from culturally and linguistically diverse backgrounds filed 11,418 scam reports, resulting in losses of $56 million, an increase of 36% from 2021.
“Australians lost more money to scams than ever before in 2022, but the true cost of scams is much more than a dollar figure as they also cause emotional distress to victims, their families and businesses,” ACCC Deputy Chair Catriona Lowe said.Read more: https://t.co/3zTXG3bL27
— Scamwatch_gov_au (@Scamwatch_gov) April 17, 2023
Urging stict security measures
ACCC commissioner Sarah Lowe said: "Traditional bank transfers remain one of the most commonly reported payment methods to scammers.
"This is a worrying trend that urgently needs to be addressed by both government and industry with input from consumer advocacy groups."
The ACCC report reveals that people from marginalised communities, particularly those from culturally and linguistically diverse backgrounds, are at higher risk of falling victim to scams, accounting for over a quarter of all losses associated with identity theft and about a third of all losses to pyramid schemes.
In response, banks are being urged to increase their security measures to protect their customers especially for vulneable comminities.
Protect yourself
Scammers are always seeking new and innovative methods of tricking you into transfering your hard earned money, here are some of the ways you can protect yourself:
- Be vigilant and suspicious of unexpected requests: Always be cautious of any unexpected requests for money, even if they appear to be from a trusted source such as a friend, family member or a known organisation. Fraudsters often pose as someone you know or an institution you trust to trick you into sending money.
- Verify the request: Always double-check the legitimacy of the request by calling or emailing the person or institution using the contact information you already have on file, rather than relying on the information provided in the email or text message.
- Be cautious of urgency and pressure tactics: Scammers often use urgency or pressure tactics to convince you to act quickly and send money before you have a chance to think. If you feel pressured or rushed, take a step back, and verify the request before proceeding.
- Keep your personal information safe: Be cautious of sharing your personal information, such as bank account details or passwords, with anyone. Fraudsters can use this information to steal your identity and access your bank accounts.
- Use secure payment methods: Use secure payment methods such as credit cards, PayPal (NASDAQ:PYPL), or other secure payment platforms that provide protection against fraud, instead of sending bank transfers.
- Enable two-factor authentication: Enable two-factor authentication for your bank accounts and other sensitive accounts, which provides an additional layer of security and prevents unauthorized access.
- Stay up-to-date on the latest scams: Stay informed about the latest scams and tactics used by fraudsters by subscribing to updates from your bank, government agencies, and other reputable sources.