New data released from Scamwatch Australia has reinforced the sophistication and rapidly growing number of scams each year in Australia which has caused a total loss of over $2 billion* during 2021 of which $701 million was related to investment scams. It is extremely important for you to remain vigilant and reach out to us (your trusted SMSF professional) before investing your retirement savings in a new product or service.
What does the 2021 data report?
- During 2021, the average monetary value lost to scams has increased by 66%.
- Combined losses to investment scams have caused the most financial harm to the Australian population throughout 2021, climbing 135% to $701 million.
- Cryptocurrency investment scams reported $99 million lost in 2021.
- Older Australians (65+) are often more at risk having lost almost $82 million in 2021, more than any other age group.
- Phone (50%), text message (23%), email (14%), internet (4%) and social networking (4%) are the top contact methods used by scammers.*
What should you do when you suspect a scam?
If someone attempts to scam you, there are several things you can do:
- Report the scam to Scamwatch Australia or ReportCyber immediately.
- Do not provide any personal information that will allow a scammer to impersonate and retrieve your funds.
- Do not click on links you have received via text or email that have a substantial number of letters and numbers.
- If you have lost money to a scam, contact your financial institution immediately.
- If you have provided personal information and you are concerned your identity may be compromised, you can contact IDCARE for free support on 1800 595 160.
- Consider contacting the organisation the suspected scammer claims to work for – the organisation may be able to confirm your suspicions.
If you have been scammed or believe you have been scammed, you shouldn’t feel embarrassed or ashamed. Financial scams are now crimes that are occurring regularly, with the latest Optus data breach only, highlighting how many scams are very sophisticated and professional. Even very experienced investors have lost money to scams emphasising how it is more important than ever to discuss the risk of scams with family, friends, and peers.
Source: scamwatch.gov.au
