Protect yourself from banking scams

Just as a cowardly thief might grab a handbag from an elderly person in the street, online criminals are targeting seniors because they appear to be vulnerable.  

The challenge for older Australians, therefore, is to take precautions by being informed about common scams and how to avoid falling victim. 

These include: 

• Phishing scams: Scammers impersonate legitimate financial institutions by sending emails or text messages that appear to be from your bank. These messages often contain a link to a fake website where you are asked to enter your banking details. Once you enter your information, the scammers can access your bank account and steal your money. 

• Phone scams: Scammers may call pretending to be a bank representative, claiming there is an issue with your account. They may ask for your account details, PIN, or passwords to “verify your identity”. No legitimate bank will ever ask for sensitive information over the phone. 

• Investment scams: These involve offering seniors a “too good to be true investment opportunity. These schemes often promise high returns with little or no risk. However, they are usually fraudulent, and seniors can lose their life savings. 

• Remote access scams: Fraudsters convince you to download software that allows them to take control of your computer. They may claim to be from your bank or a tech company, saying they need to fix a problem with your account or device. Once they have access, they can steal personal information and funds. 

• Be skeptical: Always be cautious of unsolicited emails, text messages, or phone calls, especially if they ask for personal or financial information. If you receive a suspicious message or call, do not respond directly. Instead, contact your bank using a known phone number or visit your local branch. 

• Verify the source: Before replying to any communication that appears to be from your bank, verify its authenticity. Look for signs like spelling errors, unfamiliar sender addresses, or unexpected attachments. Legitimate institutions will never ask for sensitive information via email or text. 

• Use strong, unique passwords: Ensure that your online banking passwords are strong and unique. Avoid using easily guessable passwords like “123456” or “password”. Instead, use a mix of letters, numbers, and symbols, and consider changing your passwords regularly. 

• Enable two-factor authentication (2FA): This adds an extra layer of security to your online accounts. Even if scammers obtain your password, they will need a second factor, such as a code sent to your mobile device, to access your account. 

• Monitor your accounts regularly: Regularly check your bank statements and online banking accounts for any unauthorised transactions. If you notice any suspicious activity, report it to your bank immediately. 

• Stay Informed: Scammers continually develop new tactics, so staying informed is crucial. Banks and consumer protection agencies often provide updates on the latest scams. Attending seminars or workshops on digital security can also be beneficial. 

• Seek assistance: If you are unsure about a communication or transaction, seek help from a trusted family member, friend, or financial advisor. They can provide a second opinion and help you determine if something is legitimate. 

• Immediately report the fraud to your bank and freeze your accounts. 

• Report the scam to the Australian Competition and Consumer Commission (ACCC) via Scamwatch. 

• Change all your passwords and monitor your accounts for further suspicious activity. 

• Contact the Australian Tax Office if you know or suspect someone has stolen your tax file number (TFN). 

• IDCARE provides advice on how to respond to data breaches, scams, identity theft, and cyber security concerns