Scammers are targeting investors and people in aged care. Stay vigilant!
Australians are threatened by international cybercriminals, forcing our financial sector to unite. Here’s some advice for seniors on how to avoid scams.
Key points
Investors are being targeted by cybercriminals.
Finance and consumer sectors unite to form National Anti-Scam Centre.
Practical advice for seniors to combat scams that use artificial intelligence.
Australia’s diverse financial sector is so concerned about the rise in investment scams, it has united to form the National Anti-Scam Centre to stem fraud costing the country more than $1 billion a year.
The “fusion cell”, as it is called, is led by the Australian Competition and Consumer Commission (ACCC) and Security and Investment Commission (ASIC) and includes the banks, telecommunications industry, and digital platforms.
Fusion cells are time-limited taskforces designed to bring together expertise from government and the private sector to take action to address specific, urgent problems. The National Anti-Scam Centre coordinates a series of fusion cells with different participants to target particular types of scams.
“Investment scams lead to the highest level of reported individual losses and cause emotional devastation for victims,” ACCC Deputy Chair Catriona Lowe said.
“That is why the National Anti-Scam Centre is prioritising investment scam disruption as its first fusion cell in an initiative that facilitates timely action by finance, telecommunications, and digital platforms to stop scammers.”
Fusion cell aims
The investment scam fusion cell is set up, initially for 6 months, with the National Anti-Scam Centre publicly reporting outcomes. The fusion cell aims for:
Early intervention to disrupt investment scams, including stopping scammers from reaching potential victims.
Removing investment scam websites from the internet.
Sharing information about investment scam activity to assist the private sector to take disruption action.
Providing information to the public so they can avoid investment scams.
Identifying intelligence to refer to law enforcement in Australia and overseas.
Consumer advice
Be suspicious of anyone offering you easy money. Investment scams often involve promises of big payouts for little or no risk, quick money, or guaranteed returns. But there’s always a catch.
For more information about reducing the risk of investment scams, visit ASIC’s Moneysmart website.
Investor warning
Before investing, Australian investors can make these simple practical checks to help reduce the risk of investment scams:
Check ASIC’s Offer Notice Board to see if a prospectus relates to a recent offer registered.
Check ASIC’s register of Australian financial services licensees to make sure any party promoting or issuing the financial product is licensed or is authorised by a licensee.
Check the International Organization of Securities Commission investor alerts to make sure the company or website is not named.
Scammers are focusing on vulnerable people, including those in aged care, exploiting their lack of technological knowledge or dependence on assistance. The criminals are using technology, including Artificial Intelligence (AI), to impersonate trusted organisations or generate convincing stories to gain the trust of their victims.
They then deceive seniors into divulging personal and financial details or manipulate them into making harmful decisions.
Where to get help
If you think you might be involved in an investment scam or have experienced cybercrime and lost money online, contact your bank immediately. You can also report it via ReportCyber.
You can access support to recover from a scam or identity misuse from IDCARE, a national identity and cyber support service.
Learn more about how to get help at scamwatch.gov.au. Follow Scamwatch on Twitter or subscribe to radar alerts.
- Robocall scams. Criminals use voice synthesis technology to create believable automated voices. These calls may impersonate healthcare providers, government agencies, or financial institutions, tricking seniors into sharing sensitive information or making fraudulent payments.
- Social engineering attacks. Personal information can be obtained through social media or public databases. Scammers exploit this data to build trust, impersonate acquaintances or family members and manipulate seniors into providing financial assistance or transferring funds.
- Healthcare fraud. Fake medical advertisements or websites can deceive seniors into purchasing medications, healthcare products, or treatments. These scams exploit the trust that individuals place in healthcare professionals and their desire for improved wellbeing.
- Phishing emails and messages. Convincing emails or text messages appear to be from legitimate sources such as banks, insurance companies, or government agencies. These messages often contain links or attachments designed to collect personal information or install malware on devices.
- Always verify and authenticate. Never share personal or financial information without verifying the authenticity of the request. Legitimate organisations rarely request sensitive details via unsolicited calls, emails, or messages. Always independently confirm the identity and contact information of the person or organisation before providing any information.
- Be sceptical. Develop a healthy scepticism toward unsolicited offers or promises that seem too good to be true. If an offer or investment opportunity seems suspicious, seek advice from a trusted family member, friend, or financial advisor before making any commitment.
- Secure digital practices. Keep software, antivirus programs and operating systems up to date on devices to protect against potential malware and hacking attempts. Regularly change passwords, avoid using the same password across multiple accounts, and be cautious when sharing personal information online.
- Report suspected scams. If you think you’ve been scammed, contact your local authority, the relevant regulatory agency, or a consumer protection organisations. Reporting such incidents can help prevent others from falling victim to the same scams and aid in the investigation of these criminal activities.
Related: ASIC, Hello Care
