Scams are so rife these days that extreme caution is prudent.
Once a scammer steals credit card
details online, they can launder the money on eBay before too many red flags go
off. More than 100,000 Aussies were caught up in $229 million worth of
scams in 2015, says the Australian Competition and Consumer Commission. And the
most "successful" types have increased this year.
These are the most common and costly scams today, and how to avoid them.
The tax scam
The ACCC's Scamwatch reports there were 300 victims of this scam in
2016, against 400 in the whole of 2015. What's more, they've collectively lost
$1 million this year versus $1.6 million in total last year. There's a bunch of
different executions of this one, via phone and email, but the gist will be
that you've underpaid your tax bill and have to pay pronto, or get arrested –
and, panic, the police may even be on their way! Pretenders will usually ask
for immediate payment of an unpaid debt.
Defence: Hang up or
press delete. Then call the Tax Office's official line – 1800 008 540 – to see
if the approach was for real (Voice Over Internet Protocol can be used to
disguise that calls come from overseas). So you know, the Tax Office never
requests personal details via email, will never call you to demand payment of a
tax debt and would never threaten you with arrest. And be so careful who you
tell your tax file number, as this information can facilitate identity theft.
Phishing scams
There are simply so many of these. It's the old Nigerian letter scam in
a million different guises. Around this time of year, fraudsters may even jump
on the tax bandwagon and say you are owed money by the Tax Office. There's a
new one with official-looking ASIC branding too. In every case, the basic
strategy is to say they have a payment for you and you need to provide your
bank details so it can be paid. Alternatively, you may have to pay a small fee.
The "happy" delivery will usually be by email and the overlaying
story so elaborate, so emotional or so exciting that it just might be true… you
might even unexpectedly be royalty!
Defence: Delete. If
someone really wants to give you money, they'll find you. Note: if the Tax
Office actually required personal information from you, it would direct you to
ATO online services.
Lotto scams
There is a perennial truth when it comes to money… no matter how savvy
we seem to get and no matter how seemingly successful: each and every one of us
wants to believe there is a quick and easy way to make a fortune. And it makes
us so vulnerable to money manipulation. Lotto cyber-scams work similarly to
phishing scams, above, but deserve their own category because they are simply
so prevalent.
Defence: Delete. And
of course, never click on attachments or click on links on any such emails.
The government refund scam
There's been a rise in the number of websites claiming to be able to
secure government grants for either individuals or small businesses – for a
fee. Scamwatch also reports scammers cold calling people and promising the
same. The ploy could even be to say you are entitled to thousands of dollars
because of a recent legislation change – touting legit-sounding changes like to
solar panels, pensions or natural disasters. They'll probably also make it
sound authentic by doing a bit of research into you and your circumstances. An
"admin fee", often via a money transfer, will secure the cash. And
there could well be a story about how you subsequently need to send more.
Defence: Hang up. Then
check official websites. If you are in the market for a grant, https://www.business.gov.au/Assistance will
tell you about genuine ones.
A final note: Sadly, dating and romance, along with investment scams,
accounted for more than half of all reported money lost among the over 55s in
2015, says the ACCC. All I can say is, if it sounds too good to be true…
How to avoid two popular scams
Dating & romance scams
·
Run a Google Image search to check the authenticity of any photos
provided – scammers often use fake photos they've found online.
·
Don't send money or your personal details to someone you meet online
– no matter how convincing their story is.
·
Never share intimate photos or videos with someone you meet online
– they could later use it to blackmail you.
Investment scams
·
Don't let anyone pressure you into making decisions about your money or
investments.
·
Only invest your money with a managed fund or other investment that is
licensed by ASIC and check ASIC's MoneySmart website.
·
Do not send you money overseas for an investment offer that has come out
of the blue – no matter how attractive or professional it appears.
Source: Scamwatch
