Executive Brief : Seniors and Cyber Harms

What is a scam?

• A scam is where someone tries to trick you into giving them your money and/or personal information.
  • They look real. Gone are the days when scam emails were filled with spelling and grammatical errors, today’s scams are very sophisticated and difficult to spot. Scammers often use technology to make them look real.
  • They catch you by surprise and often come out of the blue. They rely on people being too busy to think about their actions particularly online.
  • They come with believable stories. Most of these stories play on our most basic emotions, greed, loneliness, fear to motivate us to give scammers what they want.
  • They attempt to convince you to take an action usually with a sense of urgency, so you don’t have time to logically think about the situation or check with others.
• A scam is not:
  • Computer hacking
  • Unfair contract terms
  • Harassing marketing approaches

Scamwatch statistics

• In 2022, Scamwatch received a total of 239,259 reports (a decrease of 16.5% from 286,622 reports in 2021) with total reported losses of more than $569.5m (an increase of 75.9% from $323.7m in 2021).
• Reporters aged 65 and over (i.e., Seniors) made 49,163 reports with total losses of $120,754,341 which represents 20.5% of all reports and 21.2% of all reported losses. This was both the largest number of reports, and largest reported losses from any age bracket.
• While we are concerned about anyone losing money to a scam, with older Australians it is particularly concerning. We have reports of people surrendering their entire superannuation funds or life savings into scams.
• Seniors lost the most money to:
  • Investment scams – losses over $73.8m (over 61% of losses)
  • Dating and romance scams – losses over $12.9m (over 10% of losses)
  • Remote access scams – losses over $9.2m (over 7% of losses)
• The largest volume of Seniors reports was for:
  • Phishing scams – 17,274 reports (35% of reports)
  • False billing – 6,407 reports (13% of reports)
  • Identity theft – 3,512 reports (7% of reports)
• These scams all have a significant online element. Remote access scams and some investment scams begin with a phone call.
• These phone calls then drive online action by the victim. Reports indicate Seniors are more likely to report losses to email and phone scams than other age groups.
• To combat email scams, it is important not to check spam email folders. Computer users should also consider upgrading to an email provider with well-reviewed spam filters rather than using standalone free email services. Having anti-virus software on your computer is another safeguard.
• Phone scams may be avoided by simply hanging up and calling the organisation back on a number you have independently located. Well-reviewed mobile apps may also assist in protecting consumers from scam calls and texts. Let calls go to voicemail if you’re unsure of answering. Be aware of ‘spoofing’; a call or message claiming to come from a number or particular organisation name may in fact be a scammer.
• Scam case studies may be found at Appendix A.

General protection from scams

• The ACCC works with the telecommunications industry and technology providers to find technical solutions to disrupt and prevent scams. However, there are simple non- technical actions that people can take to avoid falling victim to scams.
• Stop and think. Slow down! Carefully consider any request for money or personal information.
  • Scammers often apply pressure to act urgently to prevent people from thinking clearly. For example, reputable service providers and government agencies won’t use aggression or threats to get you to pay a bill. Limited time offers and requests for urgent updates to account information should be treated with caution.
• Seek trusted, independent advice before acting.
  • Independently find contact information rather than using phone numbers or contact details provided to you over the phone, in emails, or texts. This can be done via a web search, from a previously issued bill, an authorised app or online service.
  • Speak to family and friends or trusted advisors like your tax agent or financial advisor before investing, sending, or paying money.
  • Look for independent online reviews to make sure you’re dealing with a reputable person or company. Don’t rely on reviews posted on the company’s own website.
• Don’t click on links in text messages or give anyone remote access to your computer.
  • Hyperlinks may take you to a fake web page or link to malware that give scammers access to the information on your computer.
  • Remote access is when you are requested to load software that allows a third-party access your computer. Scammers may pretend to be from Microsoft, NBN or Telstra and say there’s something wrong with your computer or internet.
  • If you suspect you have downloaded malicious software or have given someone remote access to your device, immediately turn off the device and take it to a qualified computer technician so the software can be removed.
• Be wary of opportunities that appear too good to be true. Trust your instincts if something feels wrong it probably is.
  • For example, investment scams promise very high returns, low risk or quick payouts and can seem very attractive. Don’t invest money with anyone you haven’t met in person. Visit the ASIC website to ensure you’re dealing with a registered professional.

General protection from scams

• If you have lost money, contact your bank immediately and see if anything can be done. It’s important to note though that recovery of funds is very problematic with most money moving offshore very quickly.
• If you’ve paid by unconventional means, like cryptocurrency or gift cards, unfortunately the banks won’t be able to help you.
• The Report Cyber website is a good way to report cyber based scams as the police can access these reports. If you fear for your personal safety, contact the police directly.
• Report the scam via the Scamwatch website so we can tailor our awareness messaging and focus our disruption activity to reduce harm for the community. Report even if you haven’t fallen victim.
• IDCARE is Australia and NZ’s national identity and cyber support service. If your identity information has been stolen, call them on 1800 595 160 or submit a request for help on their website.
• If you need help to lodge a report online ask a trusted person, friend, or family member for help.
• The impact of scams can be more than just financial, there can also be an emotional toll. If impacted this way, we encourage victims to reach out to friends and family or to support networks like Lifeline and Beyond Blue.

Training and resources

Below is a list of available scam education resources. These include some interactive and fun options available to give people more practice identifying possible scams.

Scam types:

https://www.scamwatch.gov.au/types-of-scams

Tips on how to protect yourself from scams:

https://www.scamwatch.gov.au/get-help/protect-yourself-from-scams

Where to get help after being scammed:

https://www.scamwatch.gov.au/get-help/where-to-get-help

Practice spotting scams safely:

https://www.scamwatch.gov.au/about-scamwatch/tools-resources/online-resources/spot-the-scam-quiz

Australia’s eSafety Commissioner has established ‘Beconnected’ which is an initiative to help senior Australians with their digital confidence and online safety. It includes a range of resources about scams including education modules on specific scams, and podcast episodes on scams.

Tips on identifying and avoiding scams:

https://beconnected.esafety.gov.au/topic-library/identifying-and-avoiding-scams

Beconnected homepage:

https://beconnected.esafety.gov.au/

IDCARE has a quiz that identifies your scam resilience score (out of 100), and recommendations on how to improve it:

https://scamrisk.idcare.org/

The Australian Cyber Security Centre offers quizzes for those who want to test their cyber safety knowledge:

https://www.cyber.gov.au/learn/quiz-library