Protecting your family from financial fraud and scams
Fraud usually happens when somebody accesses another person’s funds without their knowledge or authority.
They might not even be aware of the fraud until they notice it on their statement or receive a call from their bank. Common types of fraud can include:
- ‘Phishing’ is where your client is tricked into providing login or credit card details via a suspicious phone call or a link to a fake website.
- Malware installs software on your client’s computer after they click on a link in a legitimate looking-email, giving criminals access to your client’s bank accounts.
- Skimming happens when a device is installed on an ATM or EFTPOS machine that stores information from cards to use fraudulently later.
- Card fraud is when a client’s credit card details are used without their authorisation.
- Identity fraud occurs when your client’s identity or personal information is used to commit a crime, often through false financial documents.
- Cheque fraud uses fake, forged or altered cheques to pay for goods and services.
A scam happens when somebody gains someone’s confidence in order to steal their money or information. Scammers often use sophisticated lies to trick people.
Educating your older relatives about common scams and fraud can help them recognise the warning signs and avoid losing their money to someone who is trying to take advantage of them. Common scams attempted can include:
- IT Support that requires access to a person’s computer via installed software.
- Romance & dating scams where the scammer forms a relationship to extract money or gifts.
- Investment scams where the scammer offers fast, high returns.
- Unexpected money offered through a lottery or Nigerian scam where clients pay a small amount upfront for a larger share later.
- Travel scams offer fake free or discount holidays and ask for credit card or bank details.
- Fake charity scammers prey on someone’s compassion to get bank details for one-off or ongoing donations.