How to spot a scam

Scam literacy is improving, and reports of scams are on the decline. But as technology continues to evolve, new scams continue to pose a threat to everyday Australians. Scammers can hack your devices or accounts, impersonate a business you’re paying, or even set up fake sites or businesses and trick you into making a purchase. Here’s what you need to know about spotting a scam and staying safe.

What is a scam?

A scam is a fraudulent act intended to deceive unassuming victims, usually for money. Scams cost Australians around $2 billion each year, and the more advanced they get, the tougher they are to spot. Thankfully, scam losses fell 25 per cent last year – but it’s important to remain vigilant.

How do you get scammed?

Scammers strike in a number of ways, including phishing scams, email compromise scams, and remote access scams.

• Phishing scams involve customers clicking on links in SMS messages and emails that direct them to fake sites that capture their information. This can also happen via phone. Scammers convince victims to divulge their personal and financial information, which is used to carry out financial crime.
• Business email compromise and invoice hacking scams involve the hacking of company servers or personal email accounts to intercept and manipulate emails or invoices, which are then used to send seemingly legitimate emails to people to obtain payments or execute financial transactions.
• Impersonation scams involve a scammer pretending to be a friend or family member, or a public figure. They then try to convince victims to invest in financial products or cryptocurrency, or send them money.
• Remote access scammers contact victims by phone, and often impersonate bank or government institutions in order to access personal data and take control of devices using remote access software.

5 tips for spotting scams

1. If something looks too good to be true, it probably is

Scammers target victims with advertisements for popular products at huge discounts and sell products through websites with no intention of fulfilling your order. Anything from iPhones to puppies can be advertised by scammers. 

A recent surge in demand for live events has also created new opportunities for scammers to sell fake tickets. Plus, social media is rife with business opportunities or ‘get rich quick’ scams, including cryptocurrency trading. Scammers are impersonating public figures to gain your trust quickly.

Always do your research before buying or investing, and if something doesn’t feel right, trust your instincts.

2. Look out for unusual tone or behaviour

New advanced scams mean hackers are managing to send fraudulent emails from legitimate email addresses. As a result, identifying a scam can come down to much smaller details. If you’ve received an email that appears legitimate, check for tone, nuance, and question the nature of its contents.

If the wording or style of the email feels unusual, or if the person is asking you to transfer money or execute a financial transaction, this could be a sign of a scam. Always try to speak to the person sending the email before acting, to verify it’s genuine.

3. Be cautious of changes to payment details

Some impersonation scams will try to capture your personal or financial information through phishing tactics. This is when you click a link that directs you to a fraudulent website that is able to read what you’re typing.

Scammers may also impersonate friends, family or businesses to try to get you to redirect payments into a fraudulent account. If you receive a request from a business or someone you know asking to pay them into a different account than normal, always verify it with them over the phone or face to face.

4. Think before giving out personal information

Some scammers will use phone calls to try and get you to hand over personal information. They do this by pretending to be your bank or financial institution, or another trusted entity. If a caller starts asking you personal questions or asking to run a security check, hang up and contact the bank or business directly, on a number or email address you’ve used before.

• Bendigo Bank will never request personal information such as a pin or password or ask you to login to online services from an email or SMS text message.
• Never provide your 6-digit e-banking security code to anyone over the phone or online.
• Bendigo Bank will never ask you to click on a link in an SMS text message to login to e-banking or request remote access to your PC or device.

5. Keep up to date with the latest scams

Scammers are always finding new ways to target victims. Spotting a scam is easier if you know what to look out for, so stay informed. Discuss scams openly with friends and loved ones to ensure people are aware of the warning signs.

Plus, sign up to Scamwatch alerts to be notified of the latest scams reported and any action you need to take.

As scams get more advanced, it’s important to remain extra vigilant online. These 10 small changes can help keep you safe from scams.

To stay safe, remember to Stop, Think and Protect

• Stop – before you make a quick decision, stop. Could this be a scam? Scammers benefit from rushed decision making.
• Think – what are the red flags here? Why have I been contacted? How can I verify this is legitimate?
• Protect – act quickly if something feels wrong. Contact your bank for support if you’re transferred funds. Report the scam to Scamwatch.

If you notice unusual activity or if a scammer gets your money or information, visit www.bendigobank.com.au/security to report it and get support. If you think you have transferred money to a scammer, call us immediately on 1300 236 344.

If you have provided personal information, particularly photo identity documents like passports and driver’s licences, contact IDCARE to take steps to protect your identity.