April was an expensive month for Australians who experienced financial loss to scams, with almost $52 million stolen by criminals over the course of the month, meaning Australians have now lost almost $200 million to scammers this year alone.
The latest findings from the Australian Competition and Consumer Commission’s (ACCC) Scamwatch also reveal the number of scams reported in April total 21,837, taking the number of scams reported so far in 2023 to almost 108,000.
By comparison, by end of April 2022 a lesser 72,252 scams had been reported, representing an almost 50% increase year on year.
Investment related scams continue to be causing the highest financial loss for Australians as nearly $27 million was lost in April, totalling slightly over $115 million in 2023.
Phishing scams remain the most common type of scam in April (7,449 reports) and throughout 2023 (37,809 reports), where cyber criminals use deceptive emails or text messages (smishing) to lure Australians to reveal financial information, login credentials, or other sensitive information.
Text message remains the most common delivery method for scams, with 46,240 reports so far in 2023.
However, by phone is where Australians are experiencing the highest financial loss with more than $12 million lost in April and nearly $41 million in 2023.
Proofpoint recently released new research that shows conversational text scams were now the most prevalent mobile threat, increasing by a drastic 1,200 percent in 2022.
Other 2023 key findings from the ACCC’s Scamwatch include:
- Those aged 55 and above continue to be most targeted and experience the highest financial loss, with 38,269 reports and over $92 million lost.
- Men continue to experience the highest financial loss at nearly $113 million compared to slightly shy of $80 million by women.
- Internet based scams recorded a smaller 5,666 reports but remain one of the most costly scam delivery methods, with over $33 million lost.
- Email was the second most common delivery method, with 26,087 reports and slightly above $35 million lost, the third most costly delivery method after phone and social networking.
- Scams delivered by social networking were also one of the least recorded at 6,437 reports, however, are also one of the most costly with over $36 million lost.
Government funding boost to tackle scams
The latest results from the ACCC are a timely reminder of the ongoing threats everyday Australians continue to encounter as $86.5 million is welcomed in the federal budget to combat scams and online fraud over four years.
This funding includes $58 million to establish an anti-scam centre within the ACCC which will specialise in responding to new scams quickly.
$17.6 million will go to the Australian Securities and Investments Commission to assist with identifying websites promoting scams and $10.9 million will be used to develop a SMS sender ID register, making it harder for scammers to impersonate government and brand names in text messages.
Scammers often send text messages appearing to be from myGov or Australia Post.
Ironically last week as the federal budget was announced and Labor promised a cost-of-living relief for Australians, scammers took advantage.
A fraudulent text message impersonating ‘myGov’ circulated offering Australians a one-time payment of $750.
This phishing, or smishing, scam would have recipients click through to a fake myGov website where scammers would then steal money their money.
Adrian Covich, Senior Director, Systems Engineering, Asia Pacific and Japan at Proofpoint said, “Cyber criminals continue to target vulnerable Australians and steal their hard-earned money through a variety of delivery methods, from SMS to email, phone and social networking. Importantly, a welcome boost in funding from the federal budget will help tackle scammers and put processed in place to identify, mitigate, and stop these criminals in their tracks.
“However, what we have seen time and time again is that scammers always become more sophisticated. Since last year, the number of scams reported has significantly increased, so as crucial as funding is, what will continue to be equally as important is educating Australians on scams – knowing what to look out for, how to avoid scams, and how to better safeguard their personal data.
“Those over 65 seem to be most susceptible to scams with 23,186 reports and close to $45 million lost so far in 2023. Older generations are often targeted by scammers due to social isolation or lack of awareness. The older generation could have limited access to educational materials, so it’s important that Australians also speak to their elder family members and remind them of threats that could be circulating and what to look out for.
“Scams delivered by phone continue to be the mostly costly for Australians, totalling $41 million so far this year. Proofpoint researchers continue to observe numerous attacks carried out over the phone while blocking and detecting tens of thousands of email threats related to phone attacks every day. These scams are primarily traditional call centre fraud, such as fake tech support to steal money, or the second leverages call centres to distribute malware that can be used for secondary compromises.
“We encourage Australians to keep informed of the latest scams circulating by utilising online resources and our own tips on how to avoid scams.”
Tips for Australians to avoid being scammed:
- Never share personal or financial information including bank account or credit card details with someone you don’t know.
- Do not click through links or open attachments from unknown senders whether that’s over email, text, social media or online.
- Look out for spelling and grammatical errors, these can suggest a message is a scam.
- Only communicate with an organisation through official channels found on company websites, do not reply directly to emails or click on links provided.
- Do not share passwords with people and ensure you change passwords regularly. Consider using a password manager to help protect your personal information from being stolen.
- Be cautious about phone calls or emails that come out of the blue with investment offers or travel and other prizes.
