How to Avoid Financial Scams During Economic Uncertainty

• financial-scams
• money-protection
• economic-security

Discover key ways to protect yourself from financial scams in Australia, especially during periods of economic change or personal financial decisions.

Why Financial Scams Are on the Rise During Economic Change

Economic uncertainty often prompts Australians to reconsider their financial options—whether it’s refinancing a home loan, seeking better savings interest rates, or applying for a personal or business loan. Unfortunately, these moments of vulnerability also attract opportunistic scammers. Being aware of how financial scams work and what warning signs to watch for can make all the difference.

Common Types of Financial Scams

According to ASIC’s MoneySmart, financial scams in Australia can appear in many guises. Some of the most frequent include:

• Fake Loan and Savings Websites: Scammers create convincing websites that offer personal loans or high-interest savings accounts, but they exist only to steal your details or money.
• Upfront Payment Scams: Fraudsters posing as lenders or insurers might ask for fees in advance—then vanish once the payment is made.
• Remote Access Scams: Someone pretending to be from a reputable organisation like Telstra, your bank, or the ATO convinces you to install software like AnyDesk or TeamViewer, gaining control of your device and potentially your financial accounts.

Red Flags to Watch Out For

Here are some typical signs that you may be dealing with a scammer:

• Unexpected calls claiming your device or bank account has been hacked.
• Requests to download remote access software.
• Pressure tactics or aggressive behaviour over the phone.
• Offers that seem “too good to be true,” especially involving high returns or guaranteed approvals.

How to Protect Yourself from Financial Scams

These proactive steps can help safeguard your finances and personal data:

• Guard Your Personal Information: Never disclose banking details, login credentials, or your tax file number to someone contacting you out of the blue. Be cautious when using public Wi-Fi.
• Question Unexpected Offers: Always be sceptical of unsolicited financial products, especially those offering quick or guaranteed returns.
• Don’t Click Suspicious Links: Be wary of emails and texts from unknown sources. Hover over links to check where they lead, and go to the official site manually if you’re unsure.
• Verify Legitimacy: Use the APRA website to check if a financial institution is a licensed ADI. Always confirm contact information directly through official sources.
• Secure Your Devices: Use strong passwords, update your software regularly, install antivirus programs, and enable two-factor authentication.
• Report Suspicious Activity: If you suspect a scam, contact Scamwatch or Reverseau, and inform your bank and local police if you’ve lost money.

Staying informed and cautious is your best defence. Always pause, assess the situation critically, and when in doubt—don’t proceed.