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Scammers you didn’t see coming


Fraud by self-proclaimed psychics have cost Australians half a million dollars already this year — and we’re all vulnerable.

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Do you believe some people have psychic powers enabling them to reveal hidden truths and provide a glimpse into the mysteries of the supernatural?

The jury is still out, but there is very little scientific evidence to back claims that some people can foretell events or communicate with the dead.

What has been proven beyond doubt, though, is that there are scammers out there who pretend to have psychic or clairvoyant powers so they can separate you from your money.

According to the government’s Scamwatch website, there were 73 reports of psychic fraud between 1 January and 30 April this year, involving almost $500,000 lost by complainants.

Fraudulent psychics employ various tactics to convince people of their supposed abilities. One common strategy is known as “cold reading”, where the psychic makes general statements and relies on the subject’s reactions to guide their further claims.

They might throw out statements such as, “I sense you’ve experienced a recent loss”, or “I see financial struggles in your past”, targeting common life experiences that could apply to almost anyone.

The person seeking a reading, eager to believe, may unknowingly provide the psychic with valuable clues through their facial expressions, body language, or inadvertent disclosures.

Another technique employed by fraudulent psychics is “hot reading”, where they gather information about their clients in advance, either through research or by using covert accomplices.

With access to personal details like social media profiles or public records, these dishonest individuals can convincingly tailor their readings to appear authentic and insightful.

Devastating effects


It’s easy to dismiss the activities of fraudulent psychics as harmless fun, but the consequences for those who fall victim to their scams can be devastating.

Sydney man Nasser Zahr, who is a full-time carer to his two severely disabled children, told the ABC he lost thousands of dollars to a fake psychic who convinced him there was a curse on his family.

Entertainer Amanda says she paid $1,000 over several months to a “psychic” who kept on asking for more and more money to lift a curse.

Scamwatch warns: “Scammers are increasingly opportunistic, often connecting with victims through social media platforms.

“[They] often use personal information shared on these platforms to convince victims their insights are genuine.”

Identify frauds


If you are dealing with a person who claims to possess psychic powers, here are some red flags: 

  1. Requests for excessive personal information. Fraudulent psychics may ask probing questions to gather information that they can later use to their advantage. Be cautious if they demand specific details about your life, financial situation, or personal relationships.

  2. Promises of guaranteed outcomes. Beware of those who claim to be able to solve all your problems.

  3. Pressure to make immediate decisions. Scammers often create a sense of urgency, pressuring clients to make quick decisions or invest large sums of money.

  4. Lack of transparency or accountability. Be cautious if the “psychic” is evasive about their techniques or refuses to provide any information that might verify their claims. 

Depending on your personal beliefs, you may see no harm in having a tea-leaf or tarot card reading. If it’s just for a laugh and it doesn’t cost a lot, you can treat it as a form of entertainment.

But it’s essential to approach these readings with a healthy dose of skepticism and critical thinking, ensuring that your well-being and hard-earned money are not exploited by those who seek to profit from the vulnerability of others.

Related reading: Scamwatch, ABC, New anti-scam centre, ATO joins fight against scammers

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