Scams are becoming increasingly sophisticated, and they work because they often appear legitimate. Scammers tend to strike when you least expect it—when you’re busy, distracted, or under pressure to make quick decisions. By blending in with everyday communications and imitating trusted organisations, they can trick people into handing over money, personal details, or financial information.
According to Scamwatch, criminals exploit new technologies, products, services, and even major global or national events to make their stories sound believable. Their goal is always the same: to convince you to act before you stop and check.
The key message is clear—pause before you act. Scammers rely on you being in a rush, eager for a bargain, or trusting of an apparent authority figure. Recognising the warning signs is the first step in protecting yourself.
What is a Scam?
At its core, a scam is an economic crime. Criminals, often part of organised networks, use deception to trick people into voluntarily giving away sensitive details or money.
A scam typically involves:
Someone deceiving you into providing personal or financial information so they can steal from you.
By contrast, some negative experiences are not classified as scams. For example, if you buy a product that turns out to be poor quality, or you pay more than something is worth, these situations—while frustrating—fall under consumer rights issues. In such cases, Australian Consumer Law provides avenues for refunds or compensation. Scams, however, are deliberate, premeditated attempts at theft.
Common Signs of a Scam
Scams can be difficult to detect because they’re designed to mimic real businesses, government agencies, or even people you know. Still, there are recurring patterns that can alert you:
Too good to be true offers – Promises of easy money, high returns on investments, or incredible bargains are red flags. If it sounds too good to be true, it usually is.
Unfamiliar requests for help – Someone you’ve never met may claim to need your assistance, often involving money transfers. Romance scams and charity scams often follow this script.
Suspicious links or attachments – Emails, texts, or social media messages that urge you to click on links or download attachments may lead to malware or fake websites.
Urgency and pressure tactics – Scammers thrive on urgency. They’ll tell you to act quickly, claiming limited-time offers or fake emergencies that demand immediate action.
Unusual payment methods – Requests to pay using cryptocurrency, gift cards, wire transfers, or through new accounts/PayIDs are highly suspicious. Legitimate businesses rarely ask for payment this way.
Requests to create new accounts – Fraudsters may ask you to set up new bank accounts or digital wallets. This is often part of a money-laundering scheme.
Being alert to these signals gives you a chance to pause and verify before taking action.
Beware of Follow-Up Scams
Unfortunately, once scammers succeed, they often return. Research shows that one in three scam victims have been scammed more than once. Criminals may target victims again with a new scheme, sometimes pretending to be investigators or recovery agents offering to help retrieve lost money.
If you’ve already been scammed, be especially cautious of anyone who contacts you unexpectedly with promises of refunds or recovery services. These are almost always further scams.
The Stop, Check, Protect Approach
Scamwatch recommends following a simple three-step defence strategy:
STOP – Never give money or personal information if you feel uncertain. Take a breath before responding.
CHECK – Ask yourself whether the message, call, or request could be fake. Cross-check details through official websites or phone numbers, not those provided in the suspicious message.
PROTECT – If you’ve given out information or money, act fast. Contact your bank immediately to try to recover funds, and report the scam to Scamwatch.
Final Thoughts
Scams are clever, but you can outsmart them by staying alert and cautious. They rely on pressure, secrecy, and urgency. By slowing down and verifying before acting, you can protect not only your finances but also your peace of mind.
For more detailed advice and the latest updates on scam activity in Australia, visit the official Scamwatch website.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
