Australians are being cautioned about a significant rise in investment scams, particularly as the Reserve Bank of Australia continues to lower interest rates. According to Shaq Johnson, the head of customer protection at ANZ, these rate cuts create an environment where scammers can thrive, as individuals search for more lucrative financial opportunities.
With falling interest rates, many people understandably seek better deals. Johnson highlighted this trend during an interview, noting that scammers frequently impersonate legitimate financial institutions and trick victims into transferring funds into fraudulent term deposit accounts. Recent statistics reveal a staggering 70 per cent increase in deposit-related scams from the previous quarter.
Johnson has advised the public to exercise extreme caution when engaging with online offers related to investments or interest rates, underscoring the difficulty of recovering funds once they have been moved from personal accounts. Scammers typically use various tactics, offering seemingly attractive interest rates to lure unsuspecting individuals. Victims often fall prey to fake websites while searching for better financial products.
Scammers tend to keep their offers just below the current market rates to avoid raising suspicion. Johnson explained that when individuals pursue these better deals, they often submit their personal information and subsequently receive a call from someone posing as a financial adviser or bank representative, which can seem very convincing. Unfortunately, the rise of dark web data and artificial intelligence has made it increasingly difficult for people to discern between legitimate offers and scams.
Vigilance is essential, according to Johnson. He encourages individuals to be sceptical of offers that appear too good to be true and to conduct thorough research before acting. It’s important to remember that legitimate banks will never instruct customers to transfer money out of their accounts for verification purposes.
To stay informed about potential scams, Johnson recommends checking bank websites regularly and referring to the ACCC’s Scamwatch page for updates. By prioritising awareness, Australians can better protect themselves from these evolving threats in the financial landscape.