Common Scams and How to Avoid Them.

Introduction

In today's digital age, scams have become increasingly sophisticated and prevalent. Recently, we've observed a significant rise in various types of scams targeting individuals and their finances. This article aims to educate you on some of the most common scams, explain how they operate, and offer practical tips on how to avoid falling victim to them. By staying informed and vigilant, you can protect yourself and your loved ones from these deceptive schemes.

"Hi Mum" Text Scam

Be cautious of any text message claiming to be from a family member with a damaged phone, asking you to text a different number. The message might read, "Hi Mum, my phone does not work so I am using a spare. Please text 04xxxxxx." This could be a scam aimed at tricking you into sending money, believing you're helping a loved one. To verify, call the known number of the person in your contacts. Never change contact details or text a new number unless you are sure you are communicating with the right person.

Phishing Phone Scams

Scammers often impersonate legitimate businesses, such as banks, telephone companies, or retailers, and call to ask for personal information. They might claim there has been unauthorized activity on your account and ask you to confirm your identity by providing credit card details. Always verify the caller's identity by contacting the business directly using official contact information before sharing any personal details.

Phishing Email Scams

Last year, Australians lost $77 million to email scams. These scams involve sending urgent emails that appear to be from legitimate organizations like the government, businesses, or law enforcement. The emails often use official logos and similar email addresses to trick you into providing login details by claiming your password has expired. To avoid these scams, delete any suspicious emails and look out for telltale signs such as spelling errors, urgent language, and suspicious links. Using a password manager and enabling two-factor authentication can also enhance your security.

Flubot Text Scams

Many people have received text messages like:

• "COLES: Your reward points are nearing their expiration date. Ensure to utilize them in time..."
• "Charge reminder: Your bill has expired, please settle in time to avoid being fined, thank you for your support."
• "AT0: You have an important allowance notification view at..."

These messages ask you to click on a link, which then installs malicious software called Flubot on your device. If you receive such a message, do not click the link. Delete the message immediately.

Hacked Email Scams

There is a growing number of cases where scammers hack into email accounts and search for ways to exploit the account holder. For instance, they might email your financial planner to request a withdrawal into a different bank account. At CY Financial Advice, we never process withdrawals without speaking directly to the client and never change bank details via email, ensuring funds are not inadvertently transferred to scammers.

Conclusion

Staying informed and cautious is your best defense against these common scams. Always verify any unusual requests, be wary of unsolicited communications, and implement security measures like two-factor authentication. By remaining vigilant, you can protect yourself and your finances from fraud.