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We’ve all heard the saying “if it sounds too good to be true,it probably is”,and we generally accept it. Unfortunately,it’s human nature to selectively ignore this wisdom when we come across something wereallywant to be as good as it sounds,and all our acumen gets thrown out the window.
The ATO messaging you about a $20,000 tax refund? Sounds good! Someone wanting to buy your dusty old couch for $400 on Facebook Marketplace? Sure!
Australians lose hundreds of millions of dollars every year to scams.Michael Howard
This,and many other reasons,are why Australians lose hundreds of millions each year to scams,with the ACCC’s division reporting that in 2023 we gave away $480 million to scammers – though this is down on the whopping $569 million in losses reported in 2022.
What’s the problem?
These scams come in many different styles,from incredibly sophisticated investment and business-targeted scams,to relatively simple false billing and phishing scams. With the many and varied ways criminals are trying to pilfer your money,it’s easy to see how so many people fall for scams.
I’ll admit,I’ve gotten very close to falling for a few myself,only at the very last minute realising I was about to be ripped off,and with the advent of AI and different payment platforms,they’re only going to get harder and harder to spot.
What you can do about it
If you’re worried about getting scammed,or want to try and prevent your friends or family from falling victim,here are some things to know:
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.