Threat actors are getting more sophisticated with their scams making it harder for their victims to discern them. This has become a growing problem, especially for Australia, which has seen an 80% in total losses in 2022 compared to 2021.
Billion Lost to Scams
Australia has seen its worst loss in scams last year with an overall amount of $3.1 billion, most of which were stolen through investment scams that amount to $1.5 billion. Methods such as remote access and payment redirection scams cost $224 million and $229 million, respectively.
The Australian Competition & Consumer Commission (ACCC) claims that the numbers, which are collected by its own-run Scamwatch and other government agencies, show an 80% increase in total losses compared to the previous year, as mentioned in Bleeping Computer.
ACCC Deputy Chair Catriona Lowe noted that the scams range from impersonating official phone numbers, email addresses, and websites of legitimate organizations, to scam texts that would mix with real messages.
She noted that new tactics have surfaced, making it harder for both agencies and victims alike, and that the true cost of scams is more than the loss of money, as it causes emotional distress to victims, families, and businesses as well.
The ACCC says that it continues to provide expertise and support to prepare for the government's National Anti-Scam Centre establishment, which has the objective of making the country a difficult target for threat actors.
While ACCC's Scamwatch saw a 16.5 decrease in scam reports in 2022, with a total of 239,237, its financial losses skyrocketed with a 76% increase, which amounts to $569 million more compared to the losses in 2021.
Individual scams have increased by more than half, with a huge average of $20,000 worth of losses for each victim. New technology is used to perform fraudulent activities, which has led to Australians losing their life savings.
The biggest increase is through a method of phishing scams called "Hi Mum" and Toll/Linkt texts scams. Reports say that micro businesses saw a 95% increase in scams resulting in a loss of $13.7 million in 2022.
ACCC's Proposed Solution
The agency believes that collaborative efforts would be greatly beneficial in the mission of decreasing scam incidents, saying that law enforcement and industry need to share information to disrupt scams and that there's still work to be done.
Lowe pointed out there there are still gaps between key sectors like banks, telcos, and digital platforms between regulators and scammers. The ACCC wants to see "initiatives that apply across sectors," given that threat actors target the "weakest link."
A three-pronged approach has been suggested. First is preventing scammers from reaching victims through SMS, email, social media, and more. Consumers would also need to be aware of scammer tactics. Lastly, to put measures in place to prevent funds from being stolen.
Scamwatch advised that to avoid scams, one must first stop and think before giving away your personal and private information, think about whether the message or call is fake, and then act quickly if something feels wrong by contacting your bank or reporting it to Scamwatch.
