Why are we such suckers for financial scams?
According to a report from the Australian Competition and Consumer Commission, more than AUD$53M was lost to scams in January 2023.
Key points
- Investment fraud was the largest category, with over-65s being the biggest dollar losers and social networking and phone the most common conduits for fraudsters
- Despite all the information provided by financial services providers and public bodies on how to recognise and avoid scams, people are still vulnerable
- Fraudsters are using a range of psychological techniques to persuade people to part with their money, including reciprocity, authority, scarcity, liking and consistency.
Fraudsters are industrialising what is known as “returns abuse” in the US. Here professional fraudsters offer their services to online customers to carry out returns abuse quickly, efficiently and at scale.
To avoid falling for scams, people must educate themselves about fraudsters' techniques, report suspected scams, and remain vigilant when dealing with unsolicited approaches.
To minimise the risk of fraud or identity theft, make sure your logins are secure. Know how to recognise fraudulent websites and emails.
Read the other ways that Xero can help small business security management here or contact Alliotts' Xero Certified Advisors in Auckland on 09 520 9200.
