A Close Call: Recognizing a Scam By Dr Bibiana Chan
In 2024, Australia experienced a significant reduction in scam-related losses, decreasing by 52% compared to the previous year. Despite this positive trend, a report by ABC News revealed that international scammers perceive Australians as “easy targets,” viewing them as wealthy and trusting, with relatively weaker law enforcement responses. In contrast, Canada faced escalating challenges, with projected scam losses exceeding $569 million in 2024, indicating a rising trend. Similarly, the United States and the United Kingdom reported increasing scam losses, highlighting the global nature of this issue. These comparisons underscore the importance of continued vigilance and robust anti-scam strategies worldwide.
This was one I encountered:
On January 2nd this year, I received an SMS that appeared to be from my bank (NAB), notifying me of a suspicious transaction in Auckland, New Zealand. The message included a phone number to call if I hadn’t authorized the transaction. My heart pounded because I hadn’t made the transaction and was sitting at home at the time.
In Australia, scams happen so often that banks routinely send alerts to their customers about suspicious transactions. Having received similar messages from my banks before, I initially thought the SMS was genuine.
In a panic, I called the number provided. It connected me to what sounded like a legitimate NAB enquiry line, complete with a menu of options. I pressed ‘2’ and waited anxiously, but after more than five minutes on hold, I hung up. I tried again, selecting a different menu option, but the wait was just as long. On my third attempt, I returned to ‘2’ and waited over ten minutes before hanging up, convinced it was a hoax.
Determined to verify my suspicion, I checked NAB’s website to learn about their security alert process. Navigating through a maze of information, I finally found a section detailing how messages are sent to customers. I discovered that NAB provides two official mobile numbers for sending alerts, which are listed on their website. The number that had sent me the SMS wasn’t on the list, confirming it was a scam.
Still concerned, I called NAB’s genuine hotline and spoke to a representative. After hearing my story, he immediately confirmed it was a scam. He explained that scammers prey on fear, urging victims to act quickly, and their next step would have been to request sensitive information like bank account details or passwords. I felt fortunate to have raised the alarm before it went that far.
The representative advised me to report the incident to NAB’s scam alert line and to visit the Australian government’s Scamwatch website. While still shaken, I followed his advice and submitted reports to both. The process wasn’t easy, given my panicked state, but it was manageable. Reflecting on the experience, I felt grateful I didn’t lose anything, especially after hearing of a couple who recently lost over AUD$200,000 to a scammer posing as a real estate agent.
To prevent this from happening again, I’ve now saved NAB’s two official mobile numbers in my contacts, so I can immediately identify legitimate alerts in the future.
Download your copy of ‘Guide to scams’ here. Multilingual resources are available.
Scam Alert Tips
Here are some tips to protect yourself from scams:
- Pause and Verify: If you receive a suspicious message, don’t act immediately. Look up the organization’s genuine contact details and verify the message with them directly.
- Be Skeptical: Legitimate organizations rarely urge immediate action through texts or emails, especially for sensitive issues like financial transactions.
- Check the Sender: Compare the sender’s phone number or email address with the official details on the organization’s website.
- Avoid Clicking Links: Scammers often include malicious links. Instead, manually type the organization’s official website into your browser.
- Report the Scam: Notify the organization and submit a report to Scamwatch
- Save Official Numbers: Record your bank’s official SMS alert numbers in your contacts to quickly identify legitimate messages.
- Stay Informed: Regularly review scam alerts and educate yourself about common tactics used by fraudsters.
By staying vigilant and sharing experiences, we can help protect others from falling victim to scams.
Another scam preys on individuals selling handmade or homemade items online through platforms like Instagram, Facebook Marketplace, or Etsy. The scam typically starts when a scammer responds quickly to your sales post. Their profile often lacks credibility, featuring minimal posts and only a few photos, making it hard to verify their identity.
The scammer may provide a delivery address, either domestic or overseas, to build trust. However, they’ll often contact you at odd hours, even late at night, urging you to act immediately—this sense of urgency is a major red flag.
A common tactic involves fake messages claiming issues with your PayPal account. For example, they may send a notification like this:
“Pending ACCOUNT LIMITS: We have a problem crediting your $27.10 because your account is not set as a business user. To fix this, the buyer needs to send an additional $200 to upgrade your account. Once completed, we will credit your account with the total sum of $227.10. Neither party will lose a dime. For assistance, contact [phone number].”
This fraudulent message is designed to pressure sellers into asking the buyer to pay extra or to transfer money themselves, believing their account needs an upgrade to process payments. In reality, no legitimate platform, including PayPal, operates this way.
Key Takeaways:
- Be cautious of buyers urging immediate action, especially at odd hours.
- Verify the buyer’s profile for credibility.
- Messages suggesting account limitations or requiring additional payments are likely scams.
- Avoid sharing personal or financial information, and contact the platform directly to confirm suspicious requests.
By recognizing these red flags, sellers can protect themselves from falling victim to these deceitful tactics.
Some common scams:
1. Phishing Emails
Scammers send emails posing as trusted organizations (banks, government agencies, or utility providers). These emails often include urgent messages like “Your account is suspended” or “Payment failed.” They contain links leading to fake websites designed to steal your login credentials or personal information. Tip: Always verify the sender’s email address and avoid clicking on links. Instead, visit the official website directly.
2. Fake Online Stores
You might come across online shops offering unbelievable discounts on high-end goods. These websites often have no customer reviews, poor design, and require upfront payment without providing secure payment methods. Once you pay, the item never arrives. Tip: Research the store’s legitimacy by checking reviews and ensuring the URL is secure (look for “https”).
3. Tech Support Scams
Scammers call or email you claiming your computer or smartphone has been compromised. They offer to fix the problem remotely and request payment or access to your device. Once granted, they can steal your personal data. Tip: Genuine tech companies will never contact you unsolicited. If in doubt, reach out directly to the company using their official support channels.
4. Prize and Lottery Scams
You receive a message claiming you’ve won a prize or lottery, but to claim it, you must pay a “processing fee” or provide personal information. The prize never materializes. Tip: Legitimate lotteries don’t ask for payment upfront. If it sounds too good to be true, it probably is.
5. Job Offer Scams
Scammers post fake job ads or send unsolicited offers promising high pay for minimal work. They often ask for an upfront fee for training or materials or request personal banking details under the guise of setting up payroll. Tip: Research the company and avoid paying for job opportunities.