Scams in Australia have seen a concerning rise, with financial losses reaching over $3 billion in 2022 and an average loss of $19,654 per victim. The evolving tactics of scammers, including the use of advanced AI technologies like deepfakes and voice cloning, present a growing threat to individuals and organizations alike. In this blog, we’ll explore the latest scam statistics, and trends, and how Outseer’s proven products and services can help protect you from falling victim to these scams.
Scams in Australia: A Deepening Threat
Scams in Australia have reached alarming levels, with 2022 seeing a surge in financial losses, totaling over $3 billion. Despite a 16.5% decrease in reported cases compared to 2021, the staggering increase in financial losses underscores the growing sophistication of scammers.
Among the top scams by loss, investment scams took the lead, accounting for a massive $377 million, closely followed by dating and romance scams and false billing scams. Interestingly, people aged 65 and over reported the highest financial losses, constituting 26.4% of victims. Surprisingly, those aged 18–24 reported the lowest number of losses at just 3.4%.
As of September 2023, the scam landscape continues to evolve. There have been reports, to Scamwatch, of a substantial amount of $367 million lost to scams, with investment scams leading the financial losses at $221 million and phishing being the most reported scam.
AI and the Scam Landscape
The role of AI in scams has become increasingly prominent, with scammers harnessing its power to create convincing fraudulent content. Deepfakes for instance, involve scammers using AI to create lifelike audio and video impersonations, making distinguishing between genuine and fake content challenging. Similarly, ChatGPT and other generative AI tools are used to craft messages that mimic legitimate communication, making it harder to spot fraudulent emails and messages.
One recent example of a scam involves pre-recorded messages left in Mandarin via voicemail or on social media networks like WeChat and WhatsApp. Victims are told they have a parcel on hold and may face threats of transferring large sums of money, extortion, deportation, or arrest. This scam illustrates the dynamic nature of fraudulent activities.
Protecting Against Scams with Outseer
In this evolving landscape, staying one step ahead of scammers is essential. That’s where Outseer’s advanced solutions come into play:
- Outseer 3-D Secure: Enhance the security of digital shopping experiences, reduce fraud, and minimize operational costs associated with investigations. This solution is instrumental in combating scams related to online shopping and payments.
- Outseer Fraud Manager: Harnessing machine learning and a powerful policy engine, Outseer Fraud Manager accurately assesses and mitigates risk at every step of the digital journey. It’s a crucial defense against the evolving tactics of scammers.
- Outseer FraudAction: Protect your organization against phishing and brand impersonation with Outseer FraudAction. This solution continuously monitors the cybercrime landscape, proactively shutting down attacks before they harm your brand’s reputation.
Safeguarding Your Organization and Customers with Outseer
In a world where scams are on the rise and scammers are employing advanced AI tactics, it’s crucial to protect your organization and customers’ finances and personal information. Outseer’s comprehensive solutions provide the layered defense you need in this digital age.
How Should Australian Banks Respond?
To chart a course forward in these changing times, Australian banks are joining Outseer Connect—an invaluable platform where industry leaders from leading banks and financial institutions converge. Here, you can engage in in-depth discussions with peers, gaining fresh insights into scam prevention and AI in fraud and its far-reaching impacts. Outseer Connect offers a unique opportunity to exchange ideas, share experiences, and stay at the forefront of innovative strategies that safeguard both your institution and your valued customers.