Local warning as Australians continue to lose billions to scams

RESIDENTS are being warned to be alert to scammers as Australians reported losses totalling $2.74 billion to scams last year.

The ACCC-National Anti-Scam Centre report on scams activity 2023 revealed a 13.1% decline from previous figures.

Despite the decrease in their success, the volume of scam reports surged by 18.5%, with over 601,000 incidents reported in 2023.

Investment scams continued to be the most detrimental, draining $1.3 billion from victims. These were followed by remote access scams, which accounted for $256 million in losses, and romance scams, leading to $201.1 million in financial damage.

The report also highlighted an alarming trend among older Australians, who are disproportionately affected by scams, particularly through social media channels.

ACCC deputy chair Catriona Lowe said this age group was the only one to see an increase in reported losses, which rose by 13.3% to $120 million in 2023.

“We know of a recent case where an elderly woman lost her life savings after seeing a deepfake Elon Musk video on social media, clicking the link and registering her details online,” Ms Lowe said.

“She was assigned a ‘financial advisor’ and could see on an online dashboard she was apparently making returns, but she couldn’t withdraw her money.”

In response, member for Corangamite Libby Coker and assistant treasurer Stephen Jones teamed up to host a scam awareness session earlier this week at Villa Marie Catholic Homes Star Café in Torquay.

According to Coker, scammers are becoming more complex and their approach more tailored.

“It’s important that locals, particularly vulnerable older Australians, are alert to scams and know how to protect themselves.”

“People in our region are busier than ever and often access key services through mobile devices – which is convenient but increases the likelihood they’ll encounter scam activity.

“I receive so many phone calls and emails from people who have received a scam text message asking them to pay an overdue toll fee. This can be so stressful, especially at a time where many Australians are doing it tough with the cost of living.

“It can feel uncomfortable to admit you’ve been scammed, but it’s so important that victims reach out for help. Our government has put in place supports for scam victims, and the information they provide can help stamp out scammers.

As scam methods evolve, the National Anti-Scam Centre is also fine tuning its strategy.

“Over the next two years we will continue to invest in technology-based solutions that will centralise intelligence and distribute information to those who can act on it – such as banks to freeze accounts, telcos to block calls or SMSs and digital platforms to take down websites or accounts,” Ms Lowe said.

The Australian Government has initiated a comprehensive strategy to address scams, resulting in a decline in scam losses for the first time since 2016.

A significant part of this strategy was the creation of the National Anti-Scam Centre in July last year, which was funded through an allocation of $86.5 million in the May Budget.

This funding includes $58 million for the ACCC to run the centre, $17.6 million for ASIC to combat fraudulent investment sites, and $10 million for ACMA to manage a system that blocks scam texts.

According to recent Scamwatch data, these measures have led to a 29% drop in reported scam losses in the six months after the centre’s setup, compared to the same period the previous year.