In an age where financial transactions have largely moved online, the prevalence of financial scams has surged, catching many Australians off guard.

The Australian Competition and Consumer Commission reports that Australians lost a record $3.1 billion to scams in 2022.

This is an 80 per cent increase in total losses recorded in 2021.

This staggering loss highlights not just the cunning of scammers but also their ability to adapt to changing technologies and exploit new vulnerabilities.

So, in today’s podcast with independent financial advisor Stuart Wemyss, I want to ask him how to spot the signs of a scam.

Our conversation today is an eye-opener, revealing common tactics scammers use to exploit the digital landscape and deceive individuals.

We touch on personal experiences and the various types of scams, such as phishing and false billing.

Whether you’re an experienced investor or a beginner, this episode is packed with practical insights and data-driven predictions to help you make informed decisions.

Amidst sharing these insights, we underscore the significance of safeguarding personal and financial information and discuss how banks’ robust security measures, though sometimes inconvenient, are critical in protecting us from these fraudulent activities.

Outsmarting the scammers: strategies for protecting your wealth

Scammers have always been out there, but the risk of being scammed has changed and increased in certain ways thanks to new technologies and tools.

In my chat with Stuart today, we talked about both of our experiences with scams and the types of scams you might be likely to encounter.

• Personal experiences with bank fraud, credit card fraud, and fraud caused by hacking into social media
  • The hassles of bank protocols that have become necessary to protect against fraud and scams
• The 5 types of scams that make up 77% of fraud:
  • Phishing
    • This is when you get an email that looks real but isn’t, and it asks you to click on an insecure link.
  • False billing
    • In false billing scams, you get a notification to pay some fee, fine, or debt that sounds legitimate but isn’t.
  • Online shopping scam
  • Hacking
  • Remote access
• Phishing and false billing alone make up to 60% of financial scams
• The people most likely to get scammed are those who are unaware of what scams are out there and how they work
  • Education is one of the best ways to help people avoid being scammed
• With reasonable precautions and early reporting, once a scam is discovered, it’s the bank that’s likely to be liable for the money, not the consumer. That’s why it’s important to minimize risk and report scams as soon as possible.
• Ways to minimize scam risks:
  • Good password habits
    • Password length is key, not complexity
    • You shouldn’t use the same password across all sites, because if someone does guess the password for one site, you don’t want them to have access to everything else, too.
    • Using a password manager helps you maintain good password habits easily
  • Be skeptical of emails, texts, and calls, especially from addresses or numbers you don’t know and that don’t seem to belong from the entity that sent them.
  • Check banking and shopping sites for unusual transactions regularly
  • Staff may receive emails pretending to be from their employer. Romance scams and tech support scams target vulnerable populations.
    • It’s worth making sure that people around you, from employees to friends and family, are also educated on scams and how to avoid them.
  • If it seems too good to be true, it’s a red flag
  • Sad stories from someone you don’t know who is asking for your help are hallmarks of a scam
  • Always be cautious about clicking on links or attachments
    • Be careful about sending them as well, especially if they contain personal info
  • Look out for pressure to act quickly, without time to think it through.
  • Requests for payment in unusual forms, like pre-loaded credit cards or gift cards, should raise suspicions

It’s increasingly important to be proactive in protecting your finances from the threat of digital scams.

By staying informed and implementing strategic safety practices, listeners can defend their assets and continue building wealth.

Links and Resources:

Michael Yardney

Stuart Wemyss – Prosolution Private Clients

Stuart’s Book – Rules of the Lending Game & Investopoly

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Join us at Wealth Retreat 2024 – www.WealthRetreat.com.au

Some of our favorite quotes from the show:

“2 factor authorization is a nuisance but helped protect me.” – Michael Yardney

“ I find it interesting when I get phone calls from banks or financial institutions who ring me and then ask me to identify myself. Now I know why they’re doing it, but I always love saying hang on, you contacted me.” – Michael Yardney

“I believe this wanting what you have attitude can be practiced whatever your current situation. So how do you do this? Well, I think the first thing you should do is practice noticing what’s great about what you’ve got.” – Michael Yardney

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