In the Australian context, a scam is a dishonest or deceptive scheme designed to trick a person or business into giving away money, personal information, access to accounts, or something of value.
Members of the Fairness Institute of Australia Pty Ltd (FIOA) must not engage in any dishonest or deceptive scheme as part of their membership obligations.
The Australian Government, through the National Anti-Scam Centre and Scamwatch, generally defines scams as fraudulent activities where criminals pretend to be trusted people, businesses, government agencies, investors, employers, or romantic partners in order to deceive victims. Australians reported losing about A$2.18 billion to scams in 2025 according to the latest combined data from the Australian Competition and Consumer Commission (ACCC) and the National Anti-Scam Centre.
With Australia’s population now around 27 million people, that works out to an estimated average impact of roughly:
- About A$80 per person per year across the whole population
- Or around A$210–A$220 per adult person per year if calculated only across adults.
However, authorities repeatedly state the real cost is likely much higher, because many scams are never reported.
The figures mainly capture reported direct financial losses and do not fully include:
- Emotional and mental health impacts
- Time lost recovering accounts and identities
- Legal and banking costs
- Productivity losses for businesses
- Secondary fraud after identity theft
The reported national scam losses over recent years were approximately:
| Year | Estimated Reported Losses |
| 2025 | A$2.18 billion |
| 2024 | A$2.0 billion |
| 2023 | A$2.7 billion |
| 2022 | A$3.1 billion |
| 2021 | A$1.8 billion |
The biggest scam categories in 2025 were:
- Investment scams — A$837.7 million
- Payment redirection scams — A$166.8 million
- Romance scams — A$139.9 million
- Phishing scams — A$97.6 million
- Remote access scams — A$69.9 million.
Please take a few minutes to read the following common examples of the major scam categories
affecting Australians and the typical methods scammers use to manipulate victims.
1. Investment Scams
These are usually the highest-loss scams because victims may transfer very large amounts of money.
Example
A person sees a Facebook or news-style advertisement claiming:
- “Australian mining shares set to explode”
- “Guaranteed crypto returns”
- Fake endorsements using celebrities or well-known business figures
The victim enters contact details and receives calls from a “financial adviser.”
They are shown fake trading dashboards that appear to grow rapidly. Eventually they:
- transfer savings,
- refinance homes,
- or withdraw superannuation.
When they try to withdraw profits, excuses begin:
- “tax payment required”
- “anti-money laundering fee”
- “account verification charge”
The money is gone.
How people are tricked
Scammers exploit:
- fear of missing out,
- trust in authority,
- professional-looking websites,
- fake profits shown on dashboards,
- constant psychological pressure.
Common techniques:
- cloned legitimate investment websites,
- fake ASIC registrations,
- deepfake videos,
- fake testimonials and reviews.
2. Payment Redirection Scams
Sometimes called “business email compromise.”
Example
A homeowner is building a house or buying property.
The scammer hacks or imitates the builder, solicitor, or real estate agent email account and sends:
“Our bank details have changed. Please pay the next invoice to this account.”
The victim transfers:
- a deposit,
- settlement funds,
- or invoice payment
to the scammer’s bank account.
The real company later says:
“We never received payment.”
Losses can be hundreds of thousands of dollars.
How people are tricked
Scammers rely on:
- urgency,
- realistic email formatting,
- timing,
- trust in ongoing business relationships.
The email often looks nearly identical to the genuine one.
Common signs:
- slight email spelling differences,
- sudden change of bank details,
- pressure to pay quickly.
3. Romance Scams
These often combine emotional manipulation with financial fraud.
Example
Someone meets a person on:
- Facebook,
- Instagram,
- dating apps,
- WhatsApp,
- or even LinkedIn.
The scammer spends weeks or months building emotional trust:
- daily messages,
- video calls (sometimes AI-enhanced),
- affectionate language,
- future plans together.
Then a crisis occurs:
- medical emergency,
- frozen bank account,
- business problem,
- military deployment issue,
- investment opportunity “for both of you.”
The victim sends money repeatedly.
How people are tricked
The manipulation is psychological and gradual.
Scammers exploit:
- loneliness,
- emotional attachment,
- trust,
- embarrassment preventing victims from seeking advice.
Victims are often highly intelligent people who become emotionally invested before
financial requests begin.
4. Phishing (digital) Scams
These attempt to steal passwords, banking access, or identity information.
Example
A person receives a text message appearing to come from:
- Australia Post,
- Medicare,
- a bank,
- toll roads,
- ATO,
- or MyGov.
The message says:
“Your package is delayed”
“Outstanding toll payment”
“Account suspended”
A link directs them to a fake website almost identical to the real one.
They enter:
- passwords,
- banking details,
- MFA codes,
- or identity documents.
The scammer then accesses accounts or commits identity theft.
How people are tricked
Scammers exploit:
- panic,
- urgency,
- familiarity with trusted brands,
- mobile phone habits where users click quickly.
Modern phishing sites can look extremely convincing.
5. Remote Access Scams
These often target older Australians but affect all age groups.
Example
A person receives a call:
“This is Microsoft/your internet provider/your bank.”
The caller claims:
- the computer has viruses,
- accounts are compromised,
- suspicious transactions occurred.
The victim is told to install remote software such as:
- AnyDesk,
- TeamViewer,
- Zoho Assist.
Once connected, scammers:
- access internet banking,
- steal files,
- install malware,
- convince victims to transfer money.
Some victims are manipulated for hours while scammers control their screens.
How people are tricked
Scammers create:
- fear,
- technical confusion,
- false authority.
Victims often believe they are speaking with legitimate support staff.
Common Psychological Techniques Across Nearly All Scams
Scammers commonly use:
| Technique | Purpose |
| Urgency | Prevent careful thinking |
| Fear | Trigger emotional reactions |
| Authority | Pretend to be banks/government |
| Scarcity | Limited opportunity |
| Isolation | Stop victim seeking advice |
| Reciprocity | Build trust first |
| Greed or hope | Promise profit or romance |
A major trend in 2025–2026 is the use of:
- AI voice cloning,
- deepfake video,
- fake SMS sender IDs (e.g. can be falsely claiming to be from a major retailer),
- hacked legitimate business accounts,
- and highly professional scam websites.
The scams increasingly look genuine, which is why independent verification through official phone numbers or websites has become critical.
