Below is a breakdown of common scam types and practical tips to help you steer clear of them.
Phishing Scams
Phishing involves scammers impersonating trusted organisations like banks, internet providers, or lenders, via email or SMS. Their goal is to trick you into revealing sensitive information such as passwords, banking credentials, or credit card details.
Once they have access, they may infiltrate your device, steal funds, or use your email to target others.
How to avoid phishing scams:
Check the sender's email address or phone number carefully. If it looks unfamiliar, contains odd characters, or is misspelled, it could be a scam. Be cautious of messages requesting your PIN or one-time passwords (OTP). When in doubt, contact the organisation directly to verify the message.
Romance Scams
These scams involve someone creating a fake identity to build an emotional connection online. Over time, they may ask for money, claiming it's for medical bills, travel expenses, or investment opportunities.
How to avoid romance scams:
Be cautious of individuals who avoid video calls or in-person meetings. If someone you've met online starts asking for money, stop communication and report the account.
Investment Scams
Scammers may pose as financial advisers offering high-return investments that sound too good to be true. These offers often come via phone calls, emails, or messages with convincing marketing materials.
How to avoid investment scams:
Be wary of unsolicited investment offers, especially those promising guaranteed returns. Ask for the adviser's ASIC or AFS licence to verify their legitimacy.
Invoice and Billing Scams
These scams involve fake invoices or altered billing details. Scammers may intercept genuine invoices and change payment information, or send invoices for products or services you never purchased.
How to avoid invoice scams:
Look out for inconsistencies in email addresses or payment details. If something seems off, like a sudden change in account numbers or unexpected charges, verify with the business directly before making any payments.
Job and Employment Scams
Employment scams often promise high pay for minimal effort. Scammers may ask for money or banking details during the recruitment process, claiming it's required for onboarding or training.
How to avoid job scams:
Legitimate employers won't ask for upfront payments or require you to set up cryptocurrency accounts. If you're asked to do so, stop communication and report the scam.
Unexpected Money Scams
These scams claim you've won a prize, received an inheritance, or are owed a tax refund. The catch? You need to pay a fee to release the funds.
How to avoid unexpected money scams:
Be sceptical of messages or calls about unexpected windfalls. Never pay upfront fees to claim a prize or refund. Avoid clicking on links from unknown senders.
Threats and Extortion Scams
Scammers may use fear tactics, such as threats of arrest or deportation, to pressure you into paying money. They often impersonate government officials or law enforcement.
How to avoid extortion scams:
Don't respond to threatening messages. Report them to the relevant authorities. Always verify the identity of the caller or sender through official channels.
Staying Safe
Understanding the different types of scams helps you recognise warning signs and avoid falling victim. If you suspect a scam, report it to Scamwatch, part of the National Anti-Scam Centre. If you've already been affected, consider filing a police report and contacting your credit provider to secure your accounts.