How to spot a scam before it costs you

I’d always thought of myself as fairly switched on about this stuff. Then, in November 2023, a scam came within one tap of costing me about US$1,100.

My near miss

It started with an email that looked like it was from Etsy, where I sell prints. Someone had bought one of my aluminium prints for 78 euros. I was pleased. That was the hook.

To receive the money, I was sent to what looked like a Stripe payment page to “verify” my new Visa card. I’d recently replaced that card after a dodgy transaction, so being asked to verify it didn’t seem odd. I entered the card details. Then it asked for my account balance, “to verify the card”. That was strange, but I typed it in anyway.

It didn’t work, so a friendly chat window popped up to help. Whoever was on the other end was quick and helpful, and we tried a few different ways to make the verification go through. Then they suggested verifying by text message instead.

The text that arrived was from my own bank. It asked me to approve a payment of about US$1,099 to a company I’d never heard of.

That was the moment. I rang the bank, they cancelled the card, and a new one arrived the next week. I didn’t lose any money. What struck me afterwards was how smooth it all was. Every step made sense on its own.

The warning signs

Something nice happens out of the blue. A sale, a refund, a prize, a parcel. Good news lowers your guard.

You’re asked for something nobody legitimate needs. Your bank balance, your password, the code texted to your phone. No real bank, shop or government agency will ever ask you to read out or type in a one-time code.

You’re rushed. “Your account will be closed today.” “Act now.” Scammers want you moving faster than you’re thinking.

A bill or invoice you don’t recognise, often with a link “if this wasn’t you”. It’s designed to make you click in a panic.

A bargain from a stranger online. In buy, sell and swap groups, scammers post high-value items cheaply and ask for payment by bank transfer, which is very hard to get back.

A friend asks for money from a new account. Scammers copy, or “clone”, real people’s profiles and photos, then message their friends.

Simple habits that help

• Stop and check. Contact the company yourself, using the number or website you already know, not the details in the message.
• Turn on two-step login for email, Facebook and banking, and never share the codes.
• Use a different password for each account, or a password manager. Your pet’s name and the street you grew up on are not secrets.
• Hide your Facebook friends list, so it’s harder to clone you and target the people you know.
• Pay safely online. Use a card or a service with buyer protection, not a bank transfer to someone you don’t know.

If you’ve been scammed

These steps come from Scamwatch, the government’s scam service.

1. Call your bank or card provider straight away. Ask them to stop any payments. If you’re not sure whether it’s a scam, stop sending money.
2. Get free help from IDCARE on 1800 595 160 or at idcare.org. They’ll help you work out what to lock down.
3. Report it to Scamwatch, and warn the people around you. You can also report to police online through cyber.gov.au.
4. Watch for follow-up scams. Be very wary of anyone who contacts you offering to get your money back.
5. Look after yourself. Being scammed is upsetting, and it happens to careful people. Beyond Blue (1300 22 4636) and Lifeline (13 11 14) are there 24 hours a day if you need to talk.

If an older family member has been caught, the most useful thing is to help without blame. Then they’ll tell you next time.