Free Money Scams in Australia: Don’t Pay to Get Paid

• scam-awareness
• financial-fraud
• rebate-scams

Think you’re owed a rebate, refund or prize? Learn how scammers exploit entitlements and how to spot the red flags before losing your money.

Think You’re Getting Free Money? Think Again

Scammers in Australia are increasingly targeting individuals with the promise of unexpected windfalls—be it rebates, compensation, tax refunds or lottery winnings. These scams play on your excitement or sense of entitlement, but the end result is always the same: you lose money, not gain it.

How These Scams Work

Rebate and winnings scams usually begin with an unsolicited message via email, SMS, phone call, or even a letter. The contact claims you’re owed money—from a government department, a bank, or a compensation scheme. They may even say you’ve won a prize or inherited a large sum from a distant relative.

But there’s a catch. Before receiving your “entitlement,” you’re asked to pay a fee—often disguised as taxes, legal costs, or administrative expenses. You might also be asked to provide sensitive personal or financial details.

Of course, there’s no actual rebate, refund or prize. Once you pay the upfront fee or share your details, the scammers vanish, leaving you out of pocket and potentially vulnerable to identity theft.

Warning Signs of a Rebate or Winnings Scam

• Unexpected emails, messages, or letters claiming you’re entitled to money or have won a prize.
• Requests to pay a fee upfront to access the funds.
• You’re asked to provide sensitive information like banking details, your Tax File Number or passport.
• The message contains official-sounding language, seals, or legal claims, but is not from a verifiable source.
• The offer comes through social media or unverified contacts, often using pressure tactics like urgency.

Real-Life Examples

• Fake Tax Refunds: Messages pretending to be from the ATO, saying you’re due a refund but need to verify identity or pay an admin fee.
• Compensation Claims: Emails or calls stating you’ve been underpaid or wrongly charged by a bank, with a refund waiting—if you pay processing fees first.
• Lottery and Prize Scams: You’re told you’ve won a draw you never entered and need to pay taxes to release the winnings.
• Inheritance Scams: Someone contacts you about a deceased relative leaving you a fortune. All you need to do is pay for legal processing.

Steps to Protect Yourself

• Be sceptical of all unexpected offers of money.
• Don’t pay to get paid: Legitimate organisations never ask for upfront fees for rebates, refunds, or winnings.
• Never share financial or identity details with someone you don’t know or trust.
• Double-check with trusted sources: Contact the government department or bank directly using official contact details—not those provided in the message.
• Verify with someone you trust: Ask a friend, family member, or legal adviser if the offer sounds suspicious.
• Do your research: Google the name, phone number or email address along with terms like “scam” or “fraud”.

If You Think You've Been Scammed

Act quickly by contacting your bank and reporting the scam to Scamwatch and the Australian Cyber Security Centre. Change any compromised passwords and monitor your accounts closely for suspicious activity.

Final Thoughts

It’s natural to get excited about unexpected money—but if you didn’t apply for it or it sounds too good to be true, it probably is. Scammers rely on pressure and deceit. Don’t let them succeed—verify before you trust.