How to help your loved ones avoid scams

Older Australians lost more money to scams in 2023 than other age groups¹
The most common scams affecting older Australians, how to spot them and what steps to take if you’re suspicious of an email, text or phone call
The top five types of scams and how to help protect your loved ones from becoming victims

Your phone pings: “Hi Mum, it’s me. I lost my phone. This is my new number. Can you send me some money?” You immediately think “Scam!” but your parents and grandparents may not be as quick to recognise that.

New figures released by the National Anti-Scam Centre show that older Australians lost more money to scams in 2023 than other age groups¹. And they were the only group that didn’t see a fall in losses.

"Many think it won’t happen to them but scams affect people from all walks of life, regardless of background, education or occupation," says James Roberts, CommBank general manager of group fraud management services. That’s all the more reason to talk to the older people in your life who might be more susceptible to online scams.

The most common scams

Losses for those over 65 were already at almost $40 million for the first half of 2024² and there are many reasons this group might be targeted. Research has found that older Australians are recording declining levels of cyber ability³, which means they may not be as savvy as younger digital natives.

“Older Australians are mostly affected by investment scams and remote access scams,” says Roberts, noting that this age group is more likely to have considerable superannuation retirement savings and be actively looking to invest.

How to spot a scam

There are some telltale signs to alert older family members to scams. These include receiving a call or a social media contact out of the blue and being asked to provide personal information or your banking one-time passcode (your bank will never ask for this). You may also be asked to download software or send money to a new account.

If you – or your parents or grandparents – are suspicious of an email, text or phone call, follow these three steps:

Stop. Don’t rush to act – scammers will generally try to create a sense of urgency but real organisations won’t put you under pressure to act instantly.

Check. Ask yourself, could this message or call be fake? If you’re not sure, talk to a friend or family member or contact the organisation the message claims to be from.

Reject. If you’re unsure or something feels wrong, hang up on the caller, delete the email or message and block the phone number or email address and change your passwords.

The top five types of scams facing all Australians

1. Investment scams

“Investment scams are largely online – customers will be presented with an ad on social media or when a customer searches for investment opportunities online, they’ll see an ad for an investment option on a genuine website,” says Roberts.

“Clicking the ad takes you to a site asking for contact information and then the scammer – pretending to be an adviser, broker or bank staff member – contacts the customer to explain the ‘investment’ opportunity.”

2. Remote access scams

Scammers get access to your device to gain personal details, request payment for a fake service or install ransomware. “This is done over the phone. Scammers will impersonate businesses and give customers genuine-sounding reasons to download software, which gives the scammer access to the device,” says Roberts.

3. Romance scams

A problem on dating and social media sites, romance scams see the con artist adopt a fake online identity, build up a rapport with the victim and create the illusion of a relationship (they may even propose). Before long, they’re asking for bank account details or saying they need money.

4. Phishing

You’ll be sent a fraudulent email or text message that appears to come from a reputable source. But look closely – if you spot spelling mistakes, bad grammar or a suspicious-looking email address, they’re good indications that it’s actually an attempt to get hold of your personal and financial information.

5. Payment redirection

Scammers use fake email addresses to impersonate a legitimate business and request an upcoming payment be made into a fraudulent account. It often (but not exclusively) affects small businesses and you may think the sender is a supplier, real estate agent or a conveyancer but it’s the scammer who controls the bank account.

The future is here

There’s a new type of scam that uses AI technology. “Scammers are in the early stages of using AI to do things like impersonate people, such as a celebrity or a customer’s family,” says Roberts. “While it’s not prevalent at this stage, it will likely become more common in the future.”

What the banks are doing

CommBank is constantly updating technology to stay ahead of scammers. In the last financial year, scam losses to customers halved compared with the previous year, partly thanks to the introduction of the bank’s NameCheck technology. It searches the account details you’ve entered when making a first-time payment – if anything looks suspicious, you’ll be prompted to make further checks before proceeding. It’s estimated that the technology prevented scam payments worth more than $40 million and stopped more than $370 million in mistaken payments in the past financial year.

How families can help

Almost 40 per cent of older Australians say they have mixed feelings about discussing money with family or friends⁴ but when it comes to protecting people against scams, open communication is key.

“Talk to your family about scams,” says Roberts. “Ask them to call you if they’re unsure about a payment or if they’re thinking about making a larger than normal payment, such as for a new investment.”

And tell them not to click links in unsolicited text messages or emails and never enter personal information. For any investment opportunities, contact the company they’re investing in directly through its legitimate website. And finally, download the CommBank Safe & Savvy guide and go through it with older relatives and talk about warning signs and what steps they can take to protect themselves.

Tighten up security
Close security holes in your parents’ and grandparents’ systems by taking these important steps.

Run software updates
Regularly update the operating system on their devices – this makes it harder for hackers to get into the systems.

Enable two-factor authentication
Multi-factor authentication requires two or more forms of identity to access your system or accounts. Go to the account settings for all your online services and make sure this is activated.

Manually check changes
If your family member is receiving suspicious emails from institutions like banks, don’t click links, call them directly. Type the website into your browser, get the bank’s phone number and give them a call.

How to help your loved ones spot and avoid scams