Bendigo Bank is issuing a warning to its 2.5 million customers to stay vigilant and not fall for social media scams ahead of Scams Awareness Week 2024, starting Monday 26 August.
Bendigo Bank’s Head of Customer Protection, Jason Gordon, says that these scammers are anything but social, working around the clock targeting potential victims on networking messaging platforms and apps and costing victims millions.
“Social media is a primary origination point of online shopping scams, impersonation scams, investment scams, romance scams, and employment scams, and they are costing Australians dearly,” Mr Gordon said.
“Australians reported losses of $80.2 million to social media scams last year – up 43% on the year before, according to ScamWatch,” he says.
Often sophisticated and hard to spot, anyone on these platforms can be caught up in a social media scam, so Bendigo Bank says to look for these signs of a social media scam:
Fake accounts
“Scammers may pose on social media as your bank, a trusted friend, or even a well-known brand, trying to trick you into buying something, compromising your personal information or providing access to your devices or finances. These scams often come with high-pressure tactics and urgent requests for money or help,” Mr Gordon says.
“Research profiles to check their authenticity. Lack of history, detail and followers can be a sign of a fake profile. It’s best to assume that you are never really sure you know the person you’re dealing with online,” he says.
Investment opportunities and celebrity endorsements
“Investment scams are where Australia’s largest losses occur, with more than $78 million lost already in 2024, according to ScamWatch, many of which are advertised on social media,” Mr Gordon warns.
“Scammers aim to build trust, so a common tactic is sharing links to fake websites that mimic legitimate entities – with these scams even sometimes appearing to be endorsed by trusted identifies or famous people,” he says.
“Never assume social media ads or endorsements are legitimate. Exercise a heavy dose of scepticism for any investment opportunity that is marketed to you on these platforms. If you want to engage with an opportunity, take your time to verify what you can – like URLs, phone numbers and email addresses – through official channels, and do detailed checks such as obtaining independent legal and financial advice.”
Requests for too much information
“Scammers can learn a lot about you from details you share on your social media accounts. They may also create quizzes, competitions or posts designed to harvest sensitive or personal information that they can then use to guess your account passwords or target you with other scams,” Mr Gordon says.
“Always be wary of the amount of personal information you share online that could be used by scammers and NEVER share PINs and passwords with anyone online,” he says.
The price is right
“If you’re approached on social media or an online marketplace by someone selling something at an unbelievable price, or by someone willing to buy something you are selling without seeing it first and at a high price, it could be a scam,” Mr Gordon says.
“Be wary of offers that promise high rewards with minimal effort. Anything on social media that appears too good to be true probably is,” he says. “If you are buying anything through social media channels, always verify secure shopping facilities before entering your credit card or banking details online, too.”
Job opportunities promising easy earnings
“If you’re approached about a job online that involves receiving and transferring money for a third party, be aware that this could make you a money ‘mule’ and leave you liable to prosecution. The middleperson for criminals, mules launder or clean funds obtained from illegal activity,” Mr Gordon warns.
“Criminals are constantly recruiting mules to transfer and disguise proceeds of crime with job ads spruiking massive, quick commissions. But whatever the incentive, muling is essentially money laundering,” he explains.
“Criminals often specifically target students with limited income, older Australians and job seekers on social media platforms. Please don’t sign up for these offers. You could be moving somebody’s life savings into the hands of organised criminals.”
Australia’s most trusted bank, Bendigo and Adelaide Bank stopped $38.6 million in fraudulent transactions or around $105,000 per day in the financial year ending 30 June 2023, and Mr Gordon says that by working together with customers, the incidence of scams and fraud can be reduced even further.
Bendigo Bank launched its face-to-face education program to help customers safely navigate online banking in September 2023. Since then, more than 200 sessions have been held and over one thousand Bendigo Bank customers, and members from dozens of different community groups are now better equipped to navigate digital banking and better protect themselves online. Customers and community groups can enquire about ‘Banking Safely Online’ sessions at their nearest Bendigo Bank branch.
Mr Gordon’s advice to customers who may have fallen victim to a scam is to immediately report it and get support.
Bendigo Bank recommends stopping scammers in their tracks by following ScamWatch’s advice:
- STOP – Don’t give money or personal information to anyone if unsure.
Scammers will offer to help you or ask you to verify who you are. They will pretend to be from organisations you know and trust like Services Australia, police, government, or a fraud service.
- THINK – Ask yourself could the message or call be fake?
Never click a link in a message. Only contact us, businesses or government using contact information from their official website or through their secure apps. If you’re not sure, say no, hang up or delete.
- PROTECT – Act quickly if something feels wrong.
If you notice unusual activity or if a scammer gets your money or information, report it immediately with your financial institution and get support.
