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Scamwatch reveals increasing frauds targeting loyalty programs

Published 26/07/2023, 02:05 pm
© Reuters.  Scamwatch reveals increasing frauds targeting loyalty programs

The National Anti-Scam Centre has issued a warning about a new scam targeting the customers of loyalty points programs of well-known Australian companies.

The scam is primarily targeting members of the Qantas Frequent Flyer, Telstra and Coles loyalty programs, with Scamwatch receiving more than 209 reports of such fraudulent activity.

These activities are perpetrated by sending unsuspecting consumers an email or text message, creating a sense of urgency by suggesting their loyalty points are on the brink of expiration.

The stolen information is then exploited across various platforms, leading to more extensive fraudulent activities, which ultimately culminate in identity theft, causing a ripple of negative consequences for the victims.

Any loyalty program could be targeted

ACCC deputy chair Catriona Lowe has cautioned that any loyalty program could potentially be exploited in this type of scam, stating: "While the vast majority of reports to Scamwatch received so far are in relation to Qantas Frequent Flyer, Telstra and Coles loyalty programs, it is important for Australians to be aware that any loyalty program could be referred to in this type of scam

“The National Anti-Scam Centre has contacted the companies that have been impersonated by scammers and is working with web host providers to have the fake websites taken down, to minimise harm to the community."

Modus operandi

Within the messages, the scammers place links leading to a spoofed website that mimics the look and feel of the original.

In this crafty digital snare, scammers proceed to pilfer customers' hard-earned loyalty points.

However, the deception doesn't end there, the fraudsters go a step further by misappropriating customers’ login credentials and personal information.

Given the current economic climate, the authorities are particularly concerned that Australians facing cost-of-living pressures may fall prey to such scams.

Lowe added, "Scammers are deliberately panicking consumers by claiming their points are expiring soon.

“We urge people to immediately delete or ignore any message regarding a loyalty program that contains a link.”

Read more on Proactive Investors AU

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