Do you know how to spot a scam?

With more Australians than ever working and shopping from home, it’s hardly surprising cybercriminals had a productive year in 2020.

According to the Australian Competition and Consumer Commission's (ACCC) Scamwatch, more than 216,000 scams were reported in 2020. That’s up 28.8 per cent from 2019.

What do scams look like?

Most scams are an attempt to get you to give up personal or financial information, allowing cyber criminals to steal your identity and/or your money. They come in a wide variety of shapes and sizes, but some of the common ones to look out for are:

• Phishing scams
  Up 75% in 2020, phishing scams try to get you to click a link or open an attachment, often using fear (e.g. around COVID-19 or whatever is in the news at the time) to get your attention.
  
  If you do click on the link or attachment, it can infect your device with ransomware – damaging software that stops you from logging in until you pay the fee/ransom demanded. Ransomware can also infect other devices connected to your home or office network.
  
  To protect yourself, delete any suspicious emails and avoid clicking on links or attachments you don’t trust. You can also reduce the threat by ensuring your antivirus software is up-to-date.

• Online shopping scams
  According to the ACCC there was a 42 per cent increase in online shopping scams in 2020. This includes the use of fake websites that look like genuine stores, offering products at very low prices or things that are in high demand, like puppies and other pets.
  
  Before you buy anything online, check the store you’re buying from offers a variety of recognised payment methods and the website URL looks genuine. If they’re asking you to pay by bank transfer or cryptocurrency it may not be legitimate. 
  
  Scams are also common on classifieds websites such as Gumtree or Facebook Marketplace (e.g. you buy goods that never show up) so be sure to check the seller’s history before you buy.

• Investment scams
  Often phone calls from a “stock broker” or “portfolio manager”, investment scams were the most successful types of scams from a dollar perspective last year, stealing over $60 million from Australians.
  
  These scams often take the form of a “hot stock tip”, a “free investment seminar” or some other type of investment opportunity that may be much higher-risk than the caller is letting on.
  
  If anything sounds too good to be true, it probably is. Avoid getting involved with any financial institution that doesn’t have an Australian Financial Services License (AFSL). You can look up businesses on the Australian Securities and Investments Commission (ASIC) website.

Read up on scams

Scammers are always changing their methods and tactics. The best way to keep up is to keep an eye on the ACCC’s Scamwatch website and subscribe for scam alerts.