Australians have reportedly lost a record-breaking AU$3.1 billion to scams in 2022, according to the latest figures published by the Australian Competition and Consumer Commission (ACCC). The losses have increased by 80% compared to the previous year.
The compiled data from complaints received by Scamwatch, ReportCyber, the Australian Financial Crimes Exchange (AFCX), IDCARE, and other government agencies confirmed the losses, while the actual number is believed to be higher.
Out of the total loss, AU$1.5 billion was lost to investment scams, while AU$229 million and AU$224 million were lost to remote access scams and payment redirection scams, respectively. Traditional bank transfers were found to be one of the most common payment methods used by scammers.
According to ACCC Deputy Chair Catriona Lowe, the increasing sophistication of scammers requires a coordinated response from the government, law enforcement, and the private sector to combat scams effectively.
She said:
As scammers become increasingly sophisticated in their tactics, it is clear a coordinated response across government, law enforcement, and the private sector is essential to combat scams more effectively.
The number of scam reports received by Scamwatch reduced by 16.5% last year to 239,237, while the financial losses increased by 76% to over AU$569 million. The report further revealed that the losses per victim increased by 50% last year and averaged almost AU$20,000.
Scammers are using sophisticated tactics and technology to deceive victims, including impersonating regulators and enforcement agencies to extort money.
Low further added:
We have seen alarming new tactics emerge which make scams incredibly difficult to detect. This includes everything from impersonating official phone numbers, email addresses, and websites of legitimate organizations to scam texts that appear in the same conversation thread as genuine messages. This means now more than ever, anyone can fall victim to a scam.
The ACCC report also highlighted that Australians with “vulnerability or hardship” reported record losses. Financial losses to people with disabilities increased by 71% to AU$33.7 million, while the indigenous population reported losses of AU$5.1 million, a 5% increase. Culturally and linguistically diverse communities in Australia also reported a yearly increase of 36% , with 11,418 instances of scams and a loss of AU$56 million. Furthermore, small and micro-businesses were mainly targeted with payment redirection scams, causing a loss of AU$13.7 million, an increase of 95%.
Lowe said:
We are very concerned that people experiencing vulnerability continue to be disproportionally impacted by scams. Our report shows that people from culturally and linguistically diverse communities were significantly over-represented in terms of financial losses across a range of scam types, accounting for more than one quarter (27.9%) of total losses associated with identity theft and about a third (32.7%) of all losses to pyramid schemes.
