Scams vs. Frauds: Protecting Yourself

1st August 2024

In today’s digital age, scams and frauds are rampant, affecting countless individuals. According to a report by the Australian Competition and Consumer Commission (ACCC), Australians lost over $851 million to scams in 2020, a figure that continues to rise. Given this statistic, knowing how to protect yourself is crucial. 

What’s the Difference Between a Scam and a Fraud? 

While often used interchangeably, scams and frauds have distinct differences. A  scam typically refers to deceptive schemes designed to trick individuals into giving away money or personal information. Fraud, on the other hand, involves deception intended to result in financial or personal gain, often through more sophisticated means such as identity theft or falsifying documents. 

 

Common Scams 

  1. IT Support Scams: Scammers pose as technical support staff from well-known companies, requesting remote access to your computer. They often try to convince you to transfer money or to fix non-existent technical issues.
  2. Romance & Dating Scams: Scammers form a fake relationship to extract money or gifts. They may ask you to transfer assets or become a beneficiary in your Will, citing fake health, travel, or family emergencies.
  3. Investment Scams: Fraudsters claim to be financial advisors offering lucrative investment opportunities, convincing you to hand over money for fake investments.

 

Common Frauds 

  1. Phishing: Fraudsters trick you into revealing personal information by posing as trustworthy entities through emails or fake websites.
  2. Malware: Clicking on a link in a legitimate-looking email can install software that gives criminals access to your online banking. Malicious emails can have inconsistencies within the email address, suspicious attachments, urgent action demands or requests for payment information. 
  3. Skimming: Devices installed on ATMs or EFTPOS machines read and store your card information, which is then used for unauthorised transactions.

 

Protecting Yourself 

> Be Sceptical: Always verify the identity of anyone contacting you unexpectedly, especially if they request personal information or money. If unsure, hang up and then Google the official contact number for the company or organisation. Call them back using the verified number to ensure you’re speaking to the right person.  

> Secure Your Information: Use strong, unique passwords for different accounts and enable two-factor authentication wherever possible. 

> Stay Informed: Regularly update yourself on the latest scams and fraud tactics. Websites like Scamwatch provide valuable resources and updates on current scams. 

> Monitor Financial Statements: Regularly check your bank and credit card statements for any unauthorised transactions. 

If you suspect you have fallen victim to a scam or fraud, Castrikum Adams Legal is here to help. We offer consultations to assess your situation and can ensure you estate plans are secure and safeguarded against fraud. Stay safe and protect your assets with our skilled legal support.