As the cost of living in Australia continues to climb, many find themselves wrestling with financial pressure and unfortunately, scammers are taking advantage of the cost of living crisis. Using social engineering techniques, they are tapping into vulnerabilities to steal money and personal information.
Here are four cost of living scams you need to know about.
1. Government impersonation scams
Now more than ever, Australians face financial challenges, and scammers take full advantage. Through government impersonation scams, they use sophisticated tactics to deceive people through phone calls, emails, or text messages. They claim to be from official agencies like myGov, the ATO, or the Department of Home Affairs. They might prompt you to enter personal information to receive a special payment, threaten you with service termination, or even legal action.
Their goal? To get you to hand over your personal details or money. These fake messages can look very convincing—they often display official logos and use the real contact information to seem legitimate.
How to stay safe
If you receive an unexpected message asking for personal information, claiming you're entitled to a refund, or demanding an urgent payment, take a step back. Always verify the request by visiting the official website of the supposed agency or calling their publicly listed phone number—never use the details provided in the suspicious message. No real government agency will ask for sensitive information or payments in this way.
Also, never click on any links in these communications. They could be traps, leading you to phishing websites that capture your personal and financial details.
2. Rental scams
In the competitive rental market, scammers are seizing the opportunity to prey on eager tenants-to-be. Their deceptive tactics are not just about swindling money, either. Scammers are also after personal information.
By publishing fake rental ads on well-known property sites, hopefuly tenants are unknowingly handing over deposits and personal documents in their urgency to secure a home.
How to stay safe
Falling for a rental scam can be a heartbreaking experience, but there are ways to protect yourself. Before you get too attached to a listing, take a moment to investigate. Use a reverse image search to check if the photos have been lifted from another ad. A little digging into the provided phone number or address might show the property listed elsewhere at a suspiciously lower price.
The safest bet is to always see the property in person and meet the landlord before agreeing to anything. Remember, if a rental deal sounds too good to be true, it likely is.
3. Job scams
Job scams come in various forms, but their end goal is always the same: to steal your money and personal information. You might be offered a job that promises high pay for minimal effort, but often, these jobs don't even exist.
Scammers frequently pose as representatives from well-known companies or reputable recruitment agencies to appear more credible. They'll promise you income and then ask for payments to start your new role. Remember, any job that requires you to pay before you earn is a red flag.
How to stay safe
Always research to confirm the legitimacy of the company or job offer. Be cautious of job offers from unsolicited calls, messages, and emails, especially if it's for a job you didn't apply for. Never agree to make a payment for training or equipment before starting a job, and don't accept roles that require handling payments through your personal bank account. This could involve you in illegal activities.
4. Investment scams
Investment scams promise high returns with supposedly low risk. Malicious actors contact potential victims through phone, email, or social media with enticing "once-in-a-lifetime" opportunities. They might impersonate financial professionals and use professional-looking websites or apps to seem legitimate. They may even provide initial returns to persuade you to invest more.
How to stay safe
Stay alert to online interactions and endorsements by public figures or popular TV shows, as these can be faked. Discuss potential investments with friends or family and search for reviews using the investment name followed by 'scam.' Ignore and report any high-pressure tactics aimed at making you invest quickly. Finally, use the ASIC search portal to see if the company contacting you is recognised and verify licensing on Moneysmart.
Responding to cost-of-living scams
If you're worried you might have fallen prey to a cost-of-living scam, there are three clear signs to look out for:
- Unexpected requests for money or information: You've been asked to pay upfront fees for jobs, rentals, or government assistance you never applied for.
- Pressure to act quickly: Scammers have urged you to make immediate decisions, pushing you into actions without giving you time to think or verify.
- Too-good-to-be-true offers: Offers that promise significant money or benefits with little to no risk or effort on your part are usually fake.
If any of these scenarios sound familiar, take immediate action. Contact your bank to secure your accounts and report the scam to Australian Cyber Security Centre and Scamwatch.