In 2023, victims reportedly lost more than AU$476 million1 to scams.
From sophisticated online phishing schemes to old-fashioned telephone cons, online users are constantly at risk of falling victim to fraudulent activities.
The best way to protect yourself is through awareness and education.
Protect yourself online by understanding how to spot and avoid frauds and scams.
Common types of fraud and scams
Fraudulent activities come in various forms. Some of the most common are:
- Investment scams
- Identity theft
- Phishing, vishing or spoofing
- Online relationship scams
- Invoice scams
- Payroll scams
Investment scams promise lucrative returns but leave investors empty-handed.
Online phishing scams lure unsuspecting victims into divulging sensitive information such as passwords, credit card numbers, or personal details by posing as legitimate entities.
Phone scams and voice phishing (vishing), including the impersonation of government agencies or financial institutions, aim to coerce individuals into revealing confidential information or transferring funds.
Read more about these frauds >
But with the advances in online technology and the increasing use of artificial intelligence (AI), there is now a new type of fraud – deepfakes.
What is a deepfake?
‘Deepfakes’ are lifelike impersonations of real people, created by AI.
Some examples include;
- ‘Deepfake’ videos of celebrities or politicians appearing in ads via social media to promote online investment platforms.
- Fake news articles on social media promoting a celebrity using these fraudulent investment platforms and making huge profits.
- Criminals replicating voice recordings and videos posted on personal social profiles with as little as a 30-second clip of a person’s voice
That last example is particularly relevant for people using money transfer services like OFX. Scammers will try to set up accounts using fraudulent details and AI-generated images.
That’s why we’re so focused on prevention and staying ahead of new developments. We take the security of your personal and account information seriously.
How the fraud works
Scammers use fake news articles (‘clickbait’) on social media platforms, including ‘deepfake’ videos about celebrities and public figures claiming to make big profits from online trading platforms.
Clicking on these links can take you to a website where you might be asked to sign up. Entering your data can then compromise your personal and financial information.
One way a scammer can approach you is to pretend to be an account manager and call you, asking for a fee to access the platform. Another way is asking you to download something. It could be a cryptocurrency app to encourage you to ‘invest’.
A real-world example is where scammers used deepfake technology to trick a finance employee at a multinational firm into paying $25 million by posing as the company’s CFO in a video conference call.
Scammers may even pay out a small amount of money to gain your trust. However, when you try to withdraw your funds, they could demand withdrawal fees or fake taxes, to access your money.
Ultimately, you may be locked out of your account and won’t get your money back.
This is why prevention is the best method.
Report fraud or scams. If you’re an OFX client and believe you may have been scammed, contact the OFXpert team straight away.
We also recommend reporting the scam to the Australian Competition and Consumer Commission (ACCC) by completing the online form on the ACCC Scamwatch website
How to spot fraudulent activities
Spotting the signs of fraud is crucial for prevention.
Common red flags include:
- Unsolicited communication requesting personal or financial information
- Offers that sound too good to be true
- Demands for immediate action or secrecy
Be wary of unfamiliar websites, suspicious emails or messages, and requests for payment via unconventional methods, such as cryptocurrency or wire transfers.
If you think you’ve been the victim of a scam, report it immediately. The sooner you report it, the more likely mitigation measures can be activated.
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Stay safe online by being on the lookout for scammers and knowing how to spot and avoid common frauds.
Your transfers are secure with OFX
In today’s rapidly evolving digital landscape, safeguarding your business against fraudulent activities is paramount. We understand the critical importance of trust and security and do our part.
Our robust fraud prevention measures help protect your transfers and peace of mind, allowing you to focus on what truly matters – growing your business.
By leveraging cutting-edge technology and industry-leading expertise, we continuously monitor and adapt to emerging threats, so your data and assets remain secure.
As an OFX client, we work with you to protect you from this evolving world of fraud.
Fraud and scam prevention events
- ACCC Scam Awareness Week 2024
26 August – 1 September
We work hard to protect your transfers
We take your security seriously. Our experienced team and fraud prevention measures are here for you.
Sources:
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.