Covid-19 has led to an inevitable surge in the use of digital technologies. Repeated lock downs mean that we have all had to adjust to new ways of work and life. In 2020 Forbes Magazine published figures suggesting that internet usage had increased by approximately 70%, which will likely have increased further this year. Scammers are capitalising on the pandemic and global increase in online activity. Australians lost over $851 million to scams in 2020 which was a record amount and a 500% increase on previous years. I dread to think what that figure will be this year. Proportionally over 65 year old’s submitted the highest number of scam reports at 30,053, which although sad, is often the target cohort as they commonly have more accumulated wealth and are easier to exploit.
I’m sure that everyone of you that reads this article has been on the receiving end of an attempted scam at some point, whether it be via the telephone, online, a false classified advert or one of the many others circulating.
There are so many types of scams out there that you couldn’t possibly cover them all. This article will focus on the ones that cost Australians the most money each year, and hopefully teach you how to spot them so you don’t fall prey.
Email Scams (Phishing)
Scammers send fake emails, sometimes known as ‘phishing’ hoping that unsuspecting people will enter their personal or financial details for them to steal. The email may direct you to a fake website or potentially offer a ‘lure’ to trick you in to thinking you have won the lottery, for example. Some emails may contain links or files. These are called junk or spam emails and may harm your device if you click on the links or attachments.
Scam emails can be very convincing, appearing genuine. They will often claim to be from large organisations, making them appear more believable. Some things to look out for when distinguishing between real and scam emails are:
- Errors in spelling, grammar or unusual writing styles. Legitimate organisations employ teams to write and edit such emails prior to distribution.
- Genuine organisations will never request confirmation of personal information, such as username and password via email.
- Threats, for example, unless you act now your account will be closed or you will face criminal charges. Reputable organisations will never send threatening emails and you should delete them immediately.
A useful trick to know is hovering your curser over any links to see the actual web address it will take you to, the link that shows in the text of the e-mail is not always the same as the address you will be directed to.
Once you are on a website you think you trust you should always check for the ‘secure web address’ indicator, ‘https://’ or the little padlock (which you should be able to see next to https://seniorsofsydney.com).
However, beginning with ‘https’ does not necessarily mean they are ‘safe’. Scammers are increasingly building secure websites. I am a novice when it comes to web building, but managed to secure my address. If I am able to work out how to do this, highly technologically intelligent scammers can certainly achieve this too.
You can also hover your cursor over the senders email address and this should correspond with the institution it claims to be from rather than appearing random. If in doubt, do not click on any attachments or links, ask for a second opinion, or call the institution the email is claiming to be from, using the phone number on their legitimate website (not the one in the email) to confirm authenticity.
Fake Websites and Online Shopping Scams
Fake websites can be very convincing, with many mimicking official sites such as banks. They may ask you to update your account or security information in order to steal your confidential details or money. If banking online, always ensure you visit the official website (the web address can be found on letters from your financial institution or sometimes the back of your debit or credit card).
Unsurprisingly, the covid-19 pandemic has seen a rise in online shopping scams. The Australian Competition and Consumer Commission (ACCC) reported a total of 4000 people being duped into believing they were buying from legitimate shops between January and March this year, resulting in total losses of $1.7 million. Don’t let this happen to you! Here are 7 ways to spot a fake website:
- The URL name is unusual, for example ‘http:wwww’, which ordinarily would be ‘https://www’. A legitimate website always has a clear and common URL. Sometimes fake websites will use addresses that change suddenly when you click on them.
- The price is too good to be true. It won’t necessarily be $10 for a $1000 item, but somewhere in-between trying to help you believe it is real. Seek a second opinion if you think you are getting a bargain.
- The website is missing information or has spelling errors and poor phrasing, for example ‘Grab a Bargin Todey’
- It has damning reviews. If you are unsure always ‘google’ the shop name for reviews.
- It has unusual payment methods, for example bitcoin, money order, direct bank transfer etc. If a website asks you to pay via any of these methods alarm bells should be ringing. PayPal and Credit Card are really the only secure means of paying for products online. They are both also refundable in some cases if you do find yourself duped.
- The website is missing the trusted seal, a padlock, in the address bar. However, scammers can also create secure websites, so secure does not necessarily mean safe.
- If it is an Australian business/shop it should have an ABN displayed on the website. This information is often found at the very bottom of a web page. You can check the credentials here.
Investment Scams
Investment scams account for the biggest financial losses amongst Australians. In 2020 Scamwatch reported that trusting Australians had lost $65.8 million dollars of their hard earned money to schemes that went awry. Remember if a financial deal sounds too good to be true, it most likely is! Low-risk, high-return opportunities don’t just fall in to your lap. Scammers may be offering mortgage rate deals, shares, real estate schemes or currency trading for example.
Most of these scammers operate overseas, meaning when things go wrong you have no way of getting your money back. Ask for their Australian Financial services license number and if they cannot provide one, its probably best to steer clear. You can check whether a company is registered with the Australian Securities and Investments Commission here. Always do your research and speak with a trusted financial advisor.
Dating and Romance Scams
Falling in love is complicated. Falling for a scam can be expensive. You may think that you would never fall prey to this type of scam. However, the ACCC’s Targeting Scam Report found this to be the second most profitable for scammers when it came to Australians (collectively a total of $38.9 million being lost). Online dating and social media is filled with ‘bad eggs’ claiming to be your ideal partner. These types of scammers toy with emotions, sometimes known as ‘catfishing’. Over time the scammer will gain trust and then begin asking for money.
The best tip here would be to never transfer money to someone you have never met. Also never send someone compromising photographs as these can potentially be used to blackmail you.
False Billing Scams
If you receive an unexpected bill via email or a call demanding payment immediately, don’t assume it’s legitimate. This is a very common method scammers use for illicitly deducting money from your account. Scammers use false billing to get people to pay fraudulent invoices for products or services. If an unexpected bill does arrive in your inbox do not open the attachment, as it may be using ransomware to infect your computer with a virus. If unsure whether an invoice is real contact the provider directly using the phone number on the site you know to be legitimate or a previous paper bill.
Means of Contact Scammers Use
The ACCC records that of the reported scams in 2020 the most popular means of contact was via the phone, accounting for 47.7%. However, email, internet, social media and text message scams are all highly prevalent and can be very difficult to spot. Scammers will contact thousands of email addresses and phone numbers every day. Though they do not know whether the email address or phone number is real when they enter it, they hope that someone will respond. Once you do, they can then work on extorting information and money. You may not understand why someone would try to trick people in to providing their details, but remember it is rarely personal.
What to do if you have been scammed
Don't be embarrassed. Hundreds of thousands of people fall for scams each year, in Australia alone. It shows that as a society we are still trusting, which cannot be a bad thing.
Report a scam to help warn others and assist the authorities in tracking down the culprits. You can report to Scamwatch or the Australian Cyber Security Centre.
If you have responded to a scam, stop all further communication and delete any new messages. You can also block their email address or phone number to prevent further messages.
If you have given your bank details to a potential scammer, call the bank immediately (on a number you know is real) or visit a branch.
If you have provided scammers with passwords, you need to change them immediately. Turning on Two-Factor Authentication on your Microsoft account and e-mail account can help enhance the security of your details, usernames and passwords. Two-Factor Authentication is a measure requiring 2 form of identification, for example, a pin number, secret question or fingerprint in order to grant access to a program or operating system. Learn how to turn on Two-Factor Authentication here.
If you believe you have been subject to identity theft, contact IDCARE as they can help you deal with the consequences.
If you have been contacted by a scammer but did not provide any personal information you do not need to worry, but you can still report the scam to Scamwatch. Your actions may help prevent others from falling prey to the same scam.
Finally
If you read my previous article Tech Savvy Seniors you may be familiar with the Australian government initiative, Be Connected who offer some simple courses on online safety which can be accessed here.
Hopefully you feel empowered and confident to enjoy the many benefits of the internet, armed with the knowledge of what to look out for.
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