Australians Losing Billions Due to Scams: How Is This Happening?

According to the Australian Competitions and Consumer Commission (ACCC), Aussies have lost over a total of $2 billion in just 2021 alone. This is a record-breaking high for money lost due to scam activity and people are worried. While the reported losses equaled $1.8 billion, the estimation of what was actually lost has spanned beyond $2 billion.

Are There Any Active Scams Causing Monetary Losses in Australia?

In 2021, investment scams were the top category that accounted for losses, coming out to a total of $701 million. Not only that, payment redirection scams were another high-loss category accounting for a total of $227 million lost. With multiple scams being present in multiple countries, there is a variety of them still operational and actively stealing the money of Australians. Some of them include;

• Romance scams; accounted for $142 million being lost in just 2021
• Advance fee scams
• Phishing
• Remote access scams
• Lottery scams
• Flubot scams

There may be a few here that you weren’t already aware of. Let’s take the “flubot” scam for example. This scam has been wreaking havoc across Australia and this is mainly because of how it’s sent. This hoax is disguised as a text message and that message is associated with a link. Usually, these messages will include a “lead in” to get the recipient to open it such as a delivery of a package or a notification about a missed call. 

Clicking on this link will lead to a malware installation attempt and once it’s installed, hackers will have instant access to your personal information. Your bank passwords and account information is one of those things.

The ACCC has reported that more than 5,500 Australians have been affected by this text message scam. With one person falling victim and losing $4,000 by falling victim to this incident and that leaves many more cases equaling more or less that may have gone unreported or even unnoticed.

The Data Shows a Tough Road Ahead for Aussies: For Now

Unfortunately, these trails of scams aren’t expected to die down any time soon. In just the first half of 2022, Aussies have lost close to $300 million to a variety of scam incidents. These losses account for over 100,000 scam cases between just January and July. That period has only included 7 months. Australians must be aware of what the remainder of the year will entail. 

This month, the Law Council of Australia’s 2023 Consumer Law Forum featured a speech addressing the plans that must be implemented to help make Australia the hardest target in the world for scammers. Due to billions lost, the Australian government is trying to take a stand against fraudsters and according to ACCC Chair, Gina Cass-Gottlieb, a three-part approach needs to be used. This plan consists of;

• Stopping the reach of scammers through digital means
• Educating consumers on scam identification and reporting processes
• Implementing a safeguard that will provide an extra barrier of security if a consumer attempts to send money to the scammer

While the actual implementation and sustainability efforts of this initiative are still in their planning phases, Aussies have had enough of the constant financial losses that target anyone with a digital device. This has sparked attention across the country and is the leading reason that the fight against scams in Australia is underway.