As cybercriminal techniques evolve, an increasing number of Australians find themselves falling victim to fraud each year. Understanding the nuances between common scams and fraud, as well as implementing protective measures, is crucial in the face of these sophisticated threats.

In the fiscal year 2021-22, 11% of Australians encountered personal fraud, marking a notable rise from the 8.5% reported in 2014-15.

Australians remain a prime target for fraudsters, meaning the risk of a fraud event occurring to you or a loved one is relatively high.

Distinguishing between Scams and Frauds:

While ‘scam’ and ‘fraud’ are sometimes used interchangeably, it’s important to recognize the difference. A scam involves persuading victims to voluntarily relinquish their money or information, often without the involvement of banks or trusted professionals. Conversely, fraud occurs without the victim’s knowledge or consent, and recovery assistance may be available from financial institutions.

Common Types of Fraud in Australia:

1. Identity Takeover: Identity takeover occurs when fraudsters obtain enough personal information to perform actions such as opening accounts or accessing credit facilities in the victim’s name, all without their knowledge.
2. Account Takeover: Similar to identity takeover, account takeover involves fraudsters gaining control of legitimate accounts by utilizing stolen usernames, passwords, or other personal information.
3. Card Fraud: Card fraud, a well-known type of fraud, entails unauthorized transactions made using the victim’s bank or credit card details. While commonly associated with theft or skimming, fraudsters can also acquire card details through malware and social engineering tactics.

Warning Signs of Fraud:

Recognizing suspicious activity is crucial in preventing fraud:

• Unexpected charges on accounts: Fraudulent transactions result in unfamiliar charges on credit card bills or bank statements. Regularly reviewing statements helps identify fraudulent activity.
• Pushy behavior: Fraudsters may use aggressive tactics to obtain personal and financial information. Genuine financial professionals do not pressure clients in this manner.
• Unusual activity or instructions: Changes in communication methods or instructions from purported institutions may indicate fraudulent activity. Discrepancies in contact details or messaging apps should raise suspicion.

Responding to Suspected Fraud:

If you suspect fraud, take immediate action:

1. Maintain good digital hygiene: Use strong, unique passwords and limit publicly available personal information.
2. Verify claims independently: Verify requests for information from financial institutions through official channels.
3. Prioritize authentication: Utilize two-factor authentication services offered by banks and secure authentication apps.
4. Report suspicious activity: Notify banks and relevant authorities to aid in investigating and preventing fraud.