2024 picks: Would you fall for the ‘elaborate’ new scams?
Dec 26, 2024
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Michael Atkin, an ABC consumer affairs reporter, shares insights into the alarming rise of sophisticated scams targeting Australians. He discusses the art of deception used by scammers, particularly through fake text messages impersonating banks. Victims’ harrowing experiences reveal the emotional and financial toll of these frauds. Atkin also critiques how major banks are lagging in improving scam detection technologies and highlights government efforts, including a National Anti-Scam Centre, to combat this growing threat.
Scammers are using increasingly sophisticated techniques, like spoofing, to deceive victims, resulting in significant financial losses across Australia.
The emotional toll on scam victims is profound, often leading to shame and drastic lifestyle changes following their experiences of fraud.
Deep dives
The Complexity of Modern Scams
Recent smartphone scams in Australia highlight a growing sophistication among scammers, particularly through techniques like spoofing. These scams often involve fake messages that appear to come from legitimate banks, creating a false sense of security for victims. One notable case involved a Melbourne couple who lost $140,000 after responding to a fraudulent message that seemed authentic due to its familiarity. The technicalities and methods used by these criminals significantly increase the risk of Australians falling victim to such elaborate deceptions.
Personal Impact and Emotional Toll
The emotional consequences of falling victim to scams can be devastating, affecting victims far beyond their financial losses. Many individuals, like an aged pensioner who lost her savings meant for housing, have had to alter their lifestyles drastically. Furthermore, the overwhelming volume of stories shared with reporters reveals a consistent theme of shame and guilt among victims, contributing to their emotional distress. These experiences underline the human cost of fraud and the urgent need for enhanced protective measures.
Role of Banks and Regulatory Challenges
Banks play a crucial role in preventing scams, yet many are falling short in terms of effective protective measures. Recent reports indicate that only a small percentage of scam payments are detected and stopped by the major banks in Australia. Although some banks are implementing technology to verify payment details, there remains a significant gap in the preventive actions taken across the banking industry. Regulatory efforts are ongoing to tighten controls, but the challenge of effectively safeguarding consumers against increasingly sophisticated scams demands immediate and comprehensive action.
Don’t you get sick of the constant text messages warning that you haven’t paid a toll, or that you’ve missed a package delivery or have a refund owing?
In many cases they’re clearly fake but there are scams that aren’t so obvious, and Australians have lost billions of dollars to them.
Today, consumer affairs reporter Michael Atkin on why more of us are falling for the traps set by criminals and what the big banks should be doing to protect us.
First published 10 May 2024.
Featured:
Michael Atkin, ABC consumer affairs reporter
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