Staying vigilant against financial scams

Scammers are getting increasingly sophisticated in their attempts to get your money or personal details. Australians reported at least $3.1 billion in scam losses in 2022, an 80 per cent increase on total losses recorded
 in 2021. Scams target people of all backgrounds, ages and income levels across Australia. There's no one group of people who are more likely to become a victim of a scam, all of us may be vulnerable to a scam at some time.

As part of the recent budget announcements, the Government will invest $2 billion in new digital solutions for improved service delivery, modernising outdated legacy platforms and IT systems to protect against exisitng and future scams. 

Be alert and protect yourself from being scammed by following these ideas.

1. Be skeptical and trust your instincts: Develop a healthy skepticism when it comes to unsolicited offers, especially those promising high returns or guaranteed outcomes. Trust your instincts and be cautious of deals that sound too good to be true.

2. Educate yourself: Stay informed about the latest types of financial scams targeting Australians. Stay updated on common tactics used by scammers, such as phishing emails, phone scams, and fraudulent investment schemes. Understanding how scams operate can help you recognise warning signs and protect yourself.

3. Verify before trusting: Before making any financial decisions or sharing personal information, take the time to verify the legitimacy of the individual or organisation you are dealing with. Research their credentials, check for licenses or certifications, and confirm their contact information independently. Be cautious of high-pressure tactics that discourage you from conducting proper research.

4. Guard your personal information: Be cautious about sharing personal information, especially financial details, with unknown individuals or organisations. Legitimate financial institutions and professionals will never ask for your sensitive information over unsolicited calls or emails. Protect your passwords, banking details, and contact information, and only provide them to trusted and verified entities. 

5. Stay updated on security measures: Regularly update your computer's antivirus software and keep all software and applications on your devices up to date. Be cautious of using public Wi-Fi networks for financial transactions, as they may not be secure. Use strong, unique passwords for your financial accounts and enable two-factor authentication whenever possible.

6. Seek professional advice: Consult with reputable financial advisers or planners who have a proven track record and are licensed or registered with relevant authorities. They can provide guidance on investment options, retirement planning, and help you make informed decisions based on your specific needs and goals.

7. Report suspicious activity: If you encounter a financial scam or suspect fraudulent activity, report it immediately to the appropriate authorities. Contact your local police, Scam Watch, and the Australian Securities and Investments Commission (ASIC). Reporting scams helps protect others and increases the chances of catching and prosecuting scammers.

Remember, protecting your financial well-being requires diligence and awareness. By staying informed, being cautious, and seeking advice from trusted professionals, you can reduce the risk of falling victim to financial scams and safeguard your retirement savings.