Australian Competition and Consumer Commission has urged the community to “wise up to scams” after a 15 percent increase in the number of complaints resulting in $3 million more lost to scams in 2015 than the previous year.
“In particular, we are encouraging older Australians to wise up and watch out for scams that target them so they don’t have their hard earned savings stolen,” ACCC Deputy Chair Delia Rickard said.
A large part of the money was lost to “dating and romance scams” and “investment scams.”
“Investment scams and dating and romance scams resulted in the largest financial losses. There are many other scams which affect older members of the community but these two scams account for half of the money reported lost by over 55’s in 2015,” said Ms. Rickard.
The ACCC has revealed that Australians lost $229 million to scams last year. The commission received 105,200 scam complaints. The “Targeting Scams Report” puts the quantum of the lost money at $85 million in 2015. In 2014, this figure stood at $82 million.
Data from other jurisdictions revealed a significant amount of money lost to scam activity in Australia. A further loss of $127 million has come to fore from the reports received by Australian Cybercrime Online Reporting Network (ACORN) in 2015.
Another $17.1 was lost to unreported scams that mainly comprised of sending funds to high-risk jurisdictions.
These scams pose a significant risk for Australians looking for investment opportunities, especially those looking to grow their retirement funds.
“Investment scams come in many guises including business ventures, superannuation schemes, managed funds and the sale or purchase of shares or property. Scammers dress up ‘opportunities’ with professional looking brochures and websites to mask their fraudulent operations and trick unsuspecting Australians. Before parting with your money, do your own research on the investment company and check they have an Australian Financial Services Licence on ASIC's MoneySmart website. Don’t let anyone pressure you into making decisions about your money or investments,” Ms. Rickard said.
In 2015, Scamwatch reports for dating and romance scams decreased slightly but were still significant with just under $23 million in reported losses from 2,620 complaints. Of this $5.6 million was lost to victims over 55, with 464 complaints from this age group. ACORN reports for romance scams totals $15 million. When you add these losses to those from the disruption work ($17m), this brings the total losses for relationship scams to over $54 million.
“Dating and romance scams take advantage of people looking for romantic partners, often via dating websites, apps or social media. Scammers spend months and even years establishing a relationship with their victims before making up a reason they need to ‘borrow’ money, such as medical emergencies or travel expenses. Never send money to someone you have met online – chances are you will be left with a broken heart and an empty bank account. Cease contact with anyone that asks for money, no matter how you feel about them,” Ms. Rickard said.
Top tips
Dating & romance scams:
- Run a Google Image search to check the authenticity of any photos provided - scammers often use fake photos they’ve found online
- Don’t send money or your personal details to someone you meet online - no matter how convincing their story is
- Never share intimate photos of videos with someone you meet online - they could later use it to blackmail you
Investment scams:
- Don’t let anyone pressure you into making decisions about your money or investments
- Only invest your money with a managed fund or other investment that is licensed by ASIC and check ASIC's MoneySmart website.
- Do not send you money overseas for an investment offer that has come out of the blue – no matter how attractive or professional it appears.
