Revealed – how much is Australia losing to phone scams?

The number of Australians falling victim to phone scams is “exploding” after more residents in extended lockdowns turn to online transactions.

Nine months into 2021, Australians have already lost $211 million to scams -- a 90% increase compared to the same time in 2020, according to a report by the Australian Competition and Consumer Commission (ACCC) Scamwatch.

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Scamwatch revealed that phone-based scams that often disguise themselves as courier companies accounted for almost one-third of all losses, with Flubot the most effective.

In August, the Flubot scam resulted in 13,000 reports in just eight weeks, tricking a user into downloading a malicious form of software to access a user’s contacts and banking details.

It often works because Flubot requests more information from a user for a package to be delivered.

“These scams are particularly concerning in our current climate, as many people are turning to online shopping because of the COVID-19 lockdowns,” said Delia Rickard, deputy chair at ACCC Scamwatch.

Other scammers pretend to be from online marketplaces such as Amazon or eBay, informing victims that a large purchase has been made on their credit card and offer to process a refund for them.

By doing so, Rickard said scammers gain remote access to computers and whatever information is stored inside them.

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Whatever the scam, Rickard said Australians should never click on a link in a text message that comes out of the blue, including those from seemingly reputable names, such as those in the banking sector.

“Remember, you never know who you are dealing with online. Scammers often pretend to be from a well-known organisation, such as a bank or the government, and they will pretend to offer you something such as money or a benefit, or claim that you are in trouble,” said Rickard. “If you think something might be legitimate, call the organisation or government agency back using details you find in an independent search, rather than the details provided.”