Financial Scams and Card Skimming: What Australians Need to Know in 2025

• financial scams
• card skimming
• consumer protection

Refinancing or looking for a loan? Learn the red flags for financial scams, card skimming risks, and how to keep your money safe from scammers.

Scams Thrive in Uncertain Times: Stay Smart with Your Money

When times get tough, Australians naturally reassess their financial options—whether it’s refinancing a home loan, seeking better savings accounts, or applying for loans. Unfortunately, scammers see opportunity too, targeting people looking for genuine financial products with increasingly convincing tricks. Here’s what you need to know to protect yourself in 2025.

Common Financial Scams in Australia

• Fake Financial Websites: Scammers create legitimate-looking websites offering loans, savings accounts, or insurance. They might demand upfront payments or personal information, then disappear.
• Impersonation Scams: Criminals pose as lenders, brokers, or insurers—sometimes even mimicking well-known brands—to win your trust and demand money before providing any real service.
• Upfront Payment Traps: If you’re asked to pay a ‘processing fee’, ‘guaranteed approval’, or ‘prepayment’ for a loan or product, it’s a classic red flag.
• Phishing: Fake emails and texts designed to steal your banking or login details by pretending to be from your bank or a financial site.

Card Skimming: What It Is and How It Happens

Card skimming is another form of financial fraud where scammers attach illegal devices to ATMs or EFTPOS terminals to copy your card’s magnetic stripe data. With this info, they clone your card and make unauthorised purchases—often before you even notice.

• Red Flags for Card Skimming:
• Loose or unusual attachments on ATMs
• Keypads or card slots that look odd, bulky, or tampered with
• Transactions on your statement you don’t recognise

Top Tips: How to Protect Yourself from Financial Scams and Card Skimming

• Guard Your Personal Info: Never share banking or personal details with unknown callers, texters, or emails. Don’t send sensitive info (like your tax file number) over public Wi-Fi.
• Be Skeptical of ‘Too Good to Be True’ Offers: Loans or investments with guaranteed returns, upfront fees, or high-pressure tactics are almost always scams. Real financial providers won’t ask for money before you get approved.
• Don’t Click Suspicious Links: If you get an email or SMS about your bank account, always check the sender’s address. Hover over any links to see where they actually lead—and if you’re unsure, go straight to the bank’s official website, not the link provided.
• Check ATM and EFTPOS Terminals: Before inserting your card, inspect the machine. If anything looks unusual, don’t use it. Shield your PIN while entering it.
• Use Licenced Providers Only: Only deal with financial companies authorised by APRA (see their website for a full list of ADIs—Authorised Deposit-taking Institutions).
• Confirm Contacts Independently: Find official numbers and email addresses from company websites (not from ads or search results) before calling or emailing about your account.

If You’re a Victim or Suspect a Scam

• Contact your bank or financial provider immediately to freeze your accounts and report unauthorised activity.
• Report the scam to the Australian Competition and Consumer Commission via Scamwatch.
• Check your credit report for signs of identity theft.
• Change your passwords for all financial and important online accounts.

Stay Informed

For up-to-date scam alerts and trusted advice, visit ASIC’s MoneySmart and Scamwatch websites regularly. If you’re contacted about any financial product or see an offer online, pause, check, and verify—your financial future could depend on it.