Scammers are notorious for capitalising on busy periods like the end of financial year (EOFY), to use sophisticated tactics to steal personal information, money – or both. In June alone last year, Australians lost over $38 million to scams. The Financial Crimes & Cyber Resilience team at Customer Owned Banking Association (COBA) is now warning Australians to be vigilant this month against a surge in scams targeting shoppers, taxpayers and charitable donors.
“Criminals will align their scams with what is happening in people’s lives, so during this specific time of year many people are preparing for tax time, making tax deductible charity donations or getting a bargain during the EOFY sales,” COBA Chief of Financial Crimes and Cyber Resilience Leanne Vale explained.
“Scammers are very sophisticated in the way they target people. If you suspect you have been scammed, it’s important to contact your bank or card provider immediately, as they may be able to stop the transaction and freeze your account,” she said.
Here, COBA’s financial crimes team list some of the most common scams during the EOFY period, and how to protect yourself.
EOFY sales
June is a great season for savvy shoppers who want to take advance of mid-year sales. However, Leanne warns customers to be vigilant and ensure they are buying from trusted retailers when shopping online.
“Scammers set up fake websites which can sit under actual retailers’ sites, so these can be hard to spot. They can also use logos and ABNs to make a fake website look real,” she explained.
“It’s good practice to always verify that the website you are planning to buy from is legitimate, but alarm bells should be ringing if a deal seems too good to be true,” she added.
COBA’s financial crimes team top tips to protect yourself from EOFY sales scams are:
- Do your research: Be diligent and verify that you are perusing a real online store instead of a fake website. Be on the alert for domains that imitate real websites, including big retailers, with a slightly different spelling. Double check that the website includes privacy terms, contact details and T&Cs – many fake websites don’t have this level of information.
- Check the registry: If you are shopping on an Australian website, i.e. the domain ends with com.au, you can use the Australian Domain Authority’s website register to see which company or trademark registered it.
- Go straight to the source: Don’t click on links in emails or social media posts, which may lead to fake websites. Instead, go directly to the retailer’s official website – you can double check what it is through the above register.
- Only shop with secure payments: Ensure the website offers a secure payment service, like credit card or Paypal.
Tax time scams
Scammers frequently send out phishing emails or text messages pretending to be from myGov or related government agencies during this time of the year. These emails or text messages often ask for personal information, such as your myGov username, password, other sensitive details, or to click on a link.
COBA’s financial crimes team top tips to protect yourself from tax time scams:
- Verify email or text message sources: Always double-check the sender’s email address to ensure it’s legitimate before responding to any emails claiming to be from myGov or government agencies. Official emails from myGov will typically come from addresses ending in @my.gov.au.
- Avoid clicking on links: Be cautious of any links included in emails or text messages purportedly from myGov. Instead of clicking directly on these links, manually type the myGov website address (https://www.my.gov.au/) into your browser’s address bar to access your account.
- Watch for urgency or threats: Phishing emails often create a sense of urgency or include threats to prompt you into taking immediate action. Be sceptical of emails claiming your myGov account will be suspended or that you’ll face penalties if you don’t respond promptly. The same with offers of refunds, or overpayments.
- Never share personal information: Official representatives from myGov or government agencies will never ask you to provide personal information via email, such as your password, TFN (Tax File Number), or banking details. Avoid sharing this information in response to unsolicited emails.
Charity scams
Donating to a charity is tax deductible, as long as your donation is $2 or more and you make it to a deductible gift recipient charity. Many charities will encourage people to donate to during the EOFY period as you can reduce your taxable income, which means you can get money back in your pocket as early as July.
“Sadly, scammers take advantage of people’s generosity, so June is rife with charity scams. It’s important to be vigilant before you open your heart and wallet,” Leanne advised.
COBA’s financial crimes tips for avoiding charity scams include:
- Verify the charity: Only donate to registered charities. A good way to do make sure you are donating to a registered charity or not-for-profit is to check that they are listed on the official Charity Register).
- Go straight to the source: Don’t click on links in emails or social media posts, which may lead to fake websites. Instead, go directly to the charity’s official website (as listed in the Charity Register)
- Be wary of unsolicited calls: If you receive an unsolicited call from a charity, say that you will call back and do that by calling the listed number in the Charity Register.
What to do if you have been scammed
If you suspect you have been scammed, contact your bank or debit/credit card provider immediately to report it, to stop any further transactions, and discuss options to try and attempt to recover any lost funds.
“When contacting your bank, ensure you contact them via their official phone number – not one that has been provided by the scammer,” Leanne advises. To help combat scams, it’s important to officially report them to Scamwatch and Report Cyber.