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Avoiding impersonation scams
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Show notes
Guest: Catriona Lowe
Scams are getting harder to spot. As they become more sophisticated and convincing, it’s easier than ever to be tricked into handing over your money or personal details. Australian Competition and Consumer Commission Deputy Chair, Catriona Lowe talks with host Valens Quinn about how you can help to protect yourself, and the work of the National Anti-Scam Centre.
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Discover more:
- Learn more about the National Anti-Scam Centre
- Sign-up and build your digital skills for free at Be Connected https://www.esafety.gov.au
- Learn how to identify and avoid scams
- Learn how to stay safe on social media
- Learn more about antivirus software, protecting your privacy online and more in our advanced online security topic
- Scamwatch publishes a free ‘Little black book of scams’ to help individuals and businesses learn about scams
- If you’ve been caught up in a scam, you can report it to ScamWatch
- Learn more about the work ScamWatch is doing to protect Australians
- When you need support in a crisis, contact Lifeline on 13 11 14 (24/7) or visit Lifeline or Beyone Blue
- Listen to more podcast episodes: https://beconnected.esafety.gov.au/podcast
- Join us on Facebook: https://www.facebook.com/eSafetyOffice
- Valens Quinn on Instagram: https://www.instagram.com/valensq
- Valens Quinn on LinkedIn: https://www.linkedin.com/in/valens-quinn-745b284
- Find out more about Catriona Lowe
- Catriona Lowe on LinkedIn
Be Connected is an Australian Government Initiative developed by the Department of Social Services, the eSafety Commissioner and Good Things Foundation Australia. Be Connected builds the digital skills, confidence, and online safety of all Australians with engaging online learning resources, and a network of over 3,500 community organisations to support them to thrive in a digital world.
Be Connected acknowledges the Traditional Owners of the land on which we live and work, and pays respect to their Elders, past, present and emerging.
Transcript
We ask consumers to remember three simple words as a general rule to help avoid scams. And those words are, stop, think, protect.
[Val] Hello and welcome to the Be Connected podcast. I'm Val Quinn, and I'm a technology commentator, broadcaster, publisher, and the host of your podcast today. So scams are getting harder to spot. In years gone by, there may have been more red flags, like a telltale spelling error or some terrible grammar, but these days that isn't always the case. Scams are becoming more sophisticated and convincing so that it's easier than ever to be tricked into handing over your money or personal details. Well, joining us to talk about the work of the National Anti-Scam Centre, and most importantly, the steps that you can take to protect yourself from being scammed, is the Australian Competition and Consumer Commission Deputy Chair, Catriona Lowe. Catriona, thanks so much for being here. So let's talk about the National Anti-Scam Centre, and that was set up recently by the ACCC. And so can you tell us about the work that you're doing there and how this is helping to protect Australians?
[Catriona] Thanks, Val. And as you say, scammers are undoubtedly becoming more sophisticated in how they seek to part consumers for their money or their information, and therefore our efforts to coordinate and stop those scams also need to get more sophisticated. And the National Anti-Scam Centre is a really key part of helping us do that. So earlier this year in May, the Federal Government announced funding for the ACCC to establish a national anti-scam centre over three years, and on the 1st of July this year, the Anti-Scam Centre was launched. The overarching aim of the Anti-Scam Centre is to make Australia a much harder target for scammers, and it aims to do that in three ways, but the underlying theme is cooperation between government, the private sector, regulators, law enforcers, and consumers. So there are three streams of the work. There's data intelligence gathering and reporting, and that helps us identify emerging trends in scams and also where to focus efforts to disrupt and stop those scams getting to consumers in the first place. The second stream of work is where we draw on that data and intelligence to make sure that there are timely messages coming to the public about scams that are emerging and what to do to protect themselves. And finally, we're establishing what are called fusion cells, which are time-limited task forces that will harness the expertise of the private sector and will take a sort of short-term approach, go in, attack a problem, learn some things, and move on to the next problem.
[Val] Well, it's really encouraging to hear that Australia is gonna become a harder target for scams and thanks to the National Anti-Scam Centre, so that's good news for everybody. So I also understand that like one of the highlights on the ACCC calendar is the National Scams Awareness Week that's coming up. So what do we have planned this year? Can you tell us?
[Catriona] Absolutely. Scams Awareness Week is a campaign we've been running for a number of years now, and really its primary aim is to raise consumer awareness both of what scams there are out there prevalent at the moment, but also what to do to recognise and protect yourself. So this year will be the first year that the Scams Awareness Week program is delivered by the National Anti-Scam Centre. This year's campaign will run from Monday the 27th of November to Friday the 1st of December, and this year the campaign will be focusing on impersonation scams. Approximately 80% of the scams that are reported to Scamwatch have features that involve some form of impersonation of a well-known entity. And using new and emerging technology, scammers are just getting better and better at what we call 'spoofing' legitimate entities or brands.
[Val] Well, could we delve into the impersonation scam a little further just so people really understand what exactly it is and how they work, what the mechanics are?
[Catriona] Absolutely. So impersonation scams basically are designed to look like a communication from a legitimate organisation that people recognise. That might be your bank, your internet service provider, a government agency, or even a well-known recruiting firm. And by pretending to be from a trusted organisation, scammers will often then also use a sense of urgency to pressure consumers into paying money or providing personal information like passwords or important credit or banking details. Scammers know that when consumers are in what's called a hot state, that can override our usual caution and ability to perceive red flags. So a lot of what we see is scammers really seeking to get people into that hot state so that they are more susceptible to the call to action that the scammer is trying to get them to take. And the scammers will use many potential methods to get in touch with consumers, again, spoofing these well-known brands. So that could include a text message, a phone call, an email, a social media post, even fake websites that look very close to, if not identical, to the real deal.
[Val] Wow, it's really interesting about the hot state. It's fascinating that we can get put into a state where maybe we don't make the best decisions or not as aware of what's happening. Why don't we look into some of the common impersonation scams that are out there right now that people might encounter? I mean, I think it's great to paint a picture.
[Catriona] So last year in 2022, Scamwatch received more than 14,000 reports of bank impersonation scams, and that involved reported losses of around $20 million. So how this scam works in practice typically is people receive a call or a text message that purports to be from the security department of a bank and it will claim, for example, a suspicious transaction or that your account has been compromised. And then the scammer will urge the victim to transfer their money to a new and different account to ostensibly to protect it, but of course, that new and different account is in fact the scam account. And unfortunately, we do see scammers using spoofing technology, which means that they might be able to insert a text message into the feed that's come legitimately from a customer's bank or the phone number that they appear to be calling from is in effect cloaked to look like it's the legitimate bank phone number. So it can be difficult to spot these scams, but the key for consumers to be aware of is that your bank will never ask you to transfer money to another account to protect it. We're all familiar with the fact that banks might contact us about suspicious transactions, but it's that transfer to a new account that is the big red flag that this is a scam.
[Val] It's an amazing thing to think about how much money people have lost through these impersonation scams. It's really sad, and hackers are just, they have so many sophisticated tools at their disposal, like you said, insert their sort of directions into a conversation that you think is secure with your bank. So yeah, everybody, once again, a really important reminder is to never transfer money to another account at the behest of your bank 'cause that's a real red flag. But what other advice, Catriona, do you have to help people avoid a bank impersonation scam?
[Catriona] A key step for consumers to take if they're worried about the message that they're receiving, that they may have had a suspicious transaction on their account, is to never click on that link, don't use the phone number that appears in the message, but make your own independent inquiries. So that could be doing an internet search going to the official site of the bank and using that phone number because even though the number in the message may appear to be correct, it could in fact be a close number that will take you through to the scammer. The other point to remember, again, is that whilst your bank may contact you about a suspicious transaction, they will not ask you to transfer money to protect it. They will not ask you for your PIN number or security information, and if someone is doing that, they are a scammer.
[Val] That's very good advice indeed. I mean, absolutely the bank should already have those details about you and certainly wouldn't need to ask you about them. So yeah, really important points to stay mindful of. Well, another thing is I think it's safe to say that just about everyone would've received a text message with a link that's a scam. I know I get them all the time. I'm getting them about unpaid tolls or from Australia Post saying I've got a delivery on the way, so obviously it's another important scam type. So how does that work?
[Catriona] So these sorts of scams are a another type of phishing scam. So you know, scams are in effect phishing for your information or indeed your money. And again, we have seen a significant number of reports of these types of scams. So in 2023, we've had over 75,000 reports of phishing scams to Scamwatch with losses reported around $21 million, and that's a 69% increase from 2022. So what this looks like in practice is, again, you might receive an email or a text message claiming to be from Australia Post or your toll company and that informs you that there's a problem with your delivery, and in order to receive your package, you need to pay a shipping cost. Alternatively, there might be a link in that text message saying click here to get more information about your delivery, and it's when you do either of those things that the scam in effect activates. So in order to avoid this scam, again, we say that legitimate companies like Australia Post, like FedEx will not text, email, or call you to ask for personal information or payment. If that is being asked, again, that is a red flag that this is a scam. And again, our general advice is just don't click on the link. If you are expecting a parcel to be delivered, often there will be an app where people can check or track the delivery, and so they should be using those official safe channels rather than clicking on links in text messages.
[Val] Yeah, I think that's really good advice. We should just consider text messages as notifications about things, but not for us to then click through a link that's in there to follow an action that they might want us to do. I mean, I know that I have the Australia Post app on my phone and if I tap on that, I'll see details about a real delivery rather than tapping in say a text message that I'm sent from a potential scammer saying they're from Australia Post. So I know that there are a lot of different types of scams from phishing and impersonation, and Be Connected has a whole course to help you learn how to identify and avoid them. And we've included a link in the show notes for you to make it easy to find out more. So be sure to check out that as well. So scammers really leave no stone unturned in their efforts to trick you. Online shoppers, for example, need to be aware that their favourite retailer may be impersonated as well. So Catriona, what do you think about this?
[Catriona] You're exactly right, Val. We are seeing more reports of well-known brands being impersonated online. And the websites often look very, very like the real deal, but there can be a few telltale signs to look out for in relation to scam websites. So whilst scammers can use the latest technology to set up a fake website that looks like a genuine store, they might use a sophisticated design and layout, even a .com .au domain name. And many of these sites offer luxury items such as popular brands of clothing, jewellery, electronics at very low perhaps too good to be true prices, and that of course is the first red flag. We've heard reports from some consumers that they do receive goods, but that they are fake or very low quality goods. In other instances, we hear reports that no goods have been received at all. It's simply a way of parting consumers from their money. So a few things to look out for. Some of the scam sites limit the payment options that are available. So for example, it might be credit card only without options such as PayPal. So that is something for consumers to look out for. And another really important way for consumers to protect themselves is to check out reviews in relation to the websites, not of course the reviews on the website, but reviews sourced independently through other reviewing services. A newer version of this scam even involves the use of social media platforms to set up fake stores. So they might, in those cases, open a store for a short time, again, often selling fake branded goods, and then after making a number of sales, the stores disappear into thin air. And of course they often are using social media to advertise that fake website and drive traffic, and this can make it challenging to get to these sites in time. So again, the best way to protect yourself against that too good to be true sounding deal is to make sure that you do search for independent reviews before you make that purchase.
[Val] I see, so research is key. To do your research because if it sounds too good to be true, it probably is. And I know that I've certainly seen some incredible prices from suspect looking websites out there, and it is very interesting to hear that some people do get the goods that they order. It's just that the goods themselves are counterfeit or not, you know, legitimate in some way. So definitely something to keep in mind there. And I absolutely know what you mean. I noticed that legitimate websites will have something like PayPal as a payment method. So that is a layer of protection and a little bit more confidence. But ultimately, research is key there, like you say, Catriona. So shifting gears, celebrity endorsements can be another real trap. So if someone semi-famous appears to be backing an amazing investment opportunity on social media, for example, should we believe it?
[Catriona] The short answer is exercise extreme caution. It is most likely that the astonishing investment opportunity is not what it seems. And that's particularly the case if in addition to promising fabulous returns, it suggests that it's low risk. You usually don't get both of those things at the same time, and it's high reason to be cautious. Often with these sorts of scams, again, you'll be encouraged to make a call, click on a link to get more information about this incredible offer that is being spoofed. And again, we do see spoofing activity that occurs in relation to these scams. So you could be directed to a quite sophisticated convincing looking investment website. You might receive sophisticated documentation, and it might even include the logo of a well established investment firm or bank. So again, the first principle to remember here is that if the deal sounds too good to be true, it probably is. Secondly, you might get pressured by the scammer to rush in to the investment opportunity so that you don't miss out. That's an example of the scammer trying to create that hot state that we were speaking about earlier. And again, be aware of emails, websites, or ads with testimonials or over the top promises about big returns. So the so-called advisor who might be claiming to help you might say they don't need an Australian financial services licence, or if they do provide a licence number, check it. You can check that on the ASIC website Moneysmart. They have information about licence holders where you can check that number, and they also have some additional information that can help people avoid investment scams, including lists of known investment scams. So these are all ways that consumers can check. Again, as you say, they'll do their research before they hand over that money or that personal information.
[Val] I think these types of get rich quick kinds of scams where celebrities endorsing them are really insidious because, you know, they can be so attractive, especially when there's a lot of buzz about say the success of certain cryptocurrencies. There's a lot of misinformation out there. Yeah, I think a lot of very, you know, normal people who, you know, do their research even in some cases can get tricked here, so it's really good to be very cautious like you say. So some very good advice there. So I guess we've talked about a lot of different types of scams, but if you could give us maybe your top tips just to avoid being scammed in general, sort of what would they be?
[Catriona] We ask consumers to remember three simple words as a general rule to help avoid scams. And those words are stop, think, protect. Stop before you hand over any money, before you hand over any information. Think, "Do I know who I'm dealing with here?" And protect. If you're not sure, hang up. And if you do worry that you may have been caught by a scam, contact your bank as soon as possible and report the matter to Scamwatch. The importance of contacting your bank quickly is it may provide the opportunity to stop a transaction before those funds leave your account.
[Val] Okay, so stop, think, protect. Again, really, really sound advice there. And yes, I understand that, you know, you can potentially talk to your bank to stop a transaction, but say even other types of scams happen, what should someone do?
[Catriona] We very much encourage people to report scams to Scamwatch. Not only does that help raise awareness of the scam, it can help prevent others being caught by it. And it does help the National Anti-Scam Centre and its partners to identify those scam trends as they're emerging. So even if you haven't been caught by the scam, it is still really valuable to let Scamwatch know about the types of scams that are emerging in our community. We also do enable anonymous reports. We do know that people can feel embarrassed or ashamed about getting caught by a scam. My key message there is these scammers are sophisticated criminals. They are experts at exploiting what is really normal, really usual human behaviour. There really is a scam for everyone, so it is important to get past that feeling of embarrassment or shame. So the best thing you can do, the best remedy in fact to stop the scammers, is to make sure that we are sharing that information with each other within the community so we can raise that awareness.
[Val] Yeah, I think that's a really important point. Like you say, I mean we shouldn't feel ashamed of being scammed because, you know, scammers are very, very, very good at what they do and ultimately we have an opportunity to prevent it from happening to others when we do see a scam to share that information. So yeah, I think that's really, really important information there. So Catriona, you mentioned earlier about the collaborative role of the National Anti-Scam Centre. I think a great example of this is the impersonation scam guide the eSafety Commissioner and Be Connected work together on. What can you tell us about that?
[Catriona] Firstly, I'd like to really thank the eSafety Commissioner, Be Connected team for working with us on this important initiative. This is an easy to read and informative guide to impersonation scams and how best to avoid them. It's a great resource in keeping with these impersonation scam theme for National Scams Awareness Week. The National Anti-Scam Centre is a highly collaborative operation, and combating scams requires a holistic and coordinated response from government, law enforcement, and the private sector, and this is a really great example of that in action. So we appreciate the work that the eSafety Commissioner does in helping share this important information with the community and working with us to make sure that those messages are coherent and consistent in helping the community stay aware and ahead of these problems.
[Val] Well thanks, Catriona. That's really, really important information, and thank you so much for talking to us today and helping our listeners learn more about how they can protect themselves against scams.
[Catriona] Absolute pleasure, Val. Thanks for having me.
[Val] Thank you for joining me for this episode of the Be Connected podcast, and we will catch you in the next episode. So if you like what you've heard, please consider subscribing to receive all the latest episodes, and leave a review to help others find us if you're listening via a podcast platform. And remember to visit the show notes for information on anything we've covered here today, including links and other useful material. For more about today's subject and to discover other great topics too, go to www.beconnected.esafety.gov.au. That's www.beconnected.esafety.gov.au. I'm Val Quinn, and I look forward to your company next time. Be Connected is an Australian government initiative developed by the Department of Social Services, the eSafety Commissioner, and Good Things Foundation Australia. Be Connected builds the digital skills, confidence, and online safety of all Australians with engaging online learning resources and a network of over 3,500 community organisations to support them to thrive in a digital world.