Types of scams

Buying & selling scam.

What is it?

It’s rife! A scammer poses as a genuine buyer or seller in an attempt to get your money, goods and services. This can happen on fake websites, classified pages or social media sites.

Scammers as sellers: Here, the scammer poses as a genuine seller of goods (like pets, cars and electrical items) on common for-sale platforms. After a payment, the person naturally stops all contact and doesn’t hand over the goods.

Scammers as buyers: In this case, the scammer shows fake interest in your goods and services advertised online, and misleads you into believing payment has been made. These scammers often provide false records of payment, or request a refund for false overpayments.

What to look out for.

• Products or services advertised at below market price
• Payments requested via international money transfer, gift card, cryptocurrency, direct bank transfer or cash deposit
• Urgent payment requests prior to arranging delivery
• Goods that can’t be inspected before purchase
• Extra pre-paid charges applied like insurance, freight or taxes

Protect yourself.

• Don’t send funds upfront
• Use secure payment methods like PayPal or a credit card
• Research the company or seller before making the payment

If in doubt, call ME on 13 15 63 before making a payment.

Business email compromise scam.

What is it?

It’s big business. This common scam involves a cybercriminal impersonating the email account of an organisation, and trying to trick the recipient into sending money to a fraudulent account.

What to look out for.

• A change in bank details for the recipient of funds
• Inconsistent communication style and unusual spelling or grammar
• Sense of urgency for the payment to be made

Protect yourself.

• Verify the legitimacy of the email by calling on a trusted phone number
• Use multifactor authentication to secure email accounts

If in doubt, call ME on 13 15 63 before making a payment.

Romance scam.

What is it?
There’s more than love lost here. Romance scams seek to form a close bond, playing on your emotions and building trust in order to steal money or commit financial fraud.

What to look out for.

• Contact often occurs on dating websites, messenger apps or social media
• Rapid declarations of love and affection
• An inability to meet in person – scammers often claim to be overseas or travelling
• Claims of financial stress, hardship or emotional trauma

Protect yourself.

• Never send money to someone you haven't met in person
• Never send personal information like bank details or personal photos that could be used as blackmail
• Trust your gut instinct

If in doubt, call ME on 13 15 63 before making a payment.

Investment scam.

What is it?

Ah, the ‘get-rich-quick’ scheme. Investment scams target your personal wealth by convincing you to invest in fake schemes and companies, offering high returns, low risk and fast profits.

What to look out for.

• Cold calls from a person claiming to be a stockbroker, incentivising your investment
• False advertisements including fake celebrity endorsements
• Opening a crypto currency wallet, often done by remote access
• Encouragement to invest, including early withdrawal of superannuation
• Sense of urgency, including claims of a volatile market and possible missed opportunity
• Promises of a guaranteed return on investment

Protect yourself.

• If the returns sound too good to be true, they probably are
• Seek independent financial advice from an ASIC registered adviser
• Never provide personal information, bank account details or balances to a third party

If in doubt, call ME on 13 15 63 before making a payment.

Threat & penalty scam.

What is it?

Scary. This is where the scammer threatens you with harm, arrest or legal action in an attempt to extort funds. These cybercriminals often impersonate legitimate government or law enforcement agencies.

What to look out for.

• Cold calls, automated voice messages, emails or text messages threatening severe action if you don’t comply with payment
• Threats of deportation, claims of unpaid taxes or overdue bills, threats to expose incriminating online activity, compromised bank accounts or warrants for arrest
• Payment requests via international money transfer, gift card, cryptocurrency, direct bank transfer or cash deposit
• Requests to keep communications confidential and to lie to friends, family and financial institutions

Protect yourself.

• End the phone call immediately and don’t act upon any requests
• Never provide personal information, bank account details or balances to a third party
• Contact the relevant agency or department on a trusted number to verify the validity of the call

If in doubt, call ME on 13 15 63 before making a payment.

Unexpected money scam.

What is it?
Sounds like “You’ve won $X!/Claim your inheritance!” In reality, a scammer poses as a person or entity, requesting an up-front payment or your personal information to claim a large, unexpected sum of money.

What to look out for.

• Cold calls, emails, text messages, pop-ups or social media accounts claiming you’re entitled to an inheritance, lottery winnings, financial return or a large sum of funds
• A request for up-front payment to claim the funds – usually in the form of an international money transfer, gift card, cryptocurrency, direct bank transfer or cash deposit
• Solicitors, companies or government agencies are commonly impersonated to persuade you to make a payment

Protect yourself.

• If it’s unexpected, it’s probably a scam
• Avoid any requests for up-front payment
• Discuss the legitimacy of the claim with a trusted person
• Never provide personal information, bank account details or balances to a third party

If in doubt, call ME on 13 15 63 before making a payment.