Scams in “plague proportions” on social media: how to stay safe

A “relentless” surge in scams has prompted banks and other financial groups to warn people to be extra-cautious on social media.

Former broadcaster David Koch is demanding a federal government crackdown on scams targeting Australians through social media.

Despite leaving his high-profile role on Channel 7’s Sunrise program in June, Koch continues to battle scammers using his image and fake messages to promote dodgy investments.

“It’s almost plague proportions now,” said Koch, who is considering legal action against social media platforms that run the scammers’ ads.

Scams are surging, with several financial institutions issuing warnings this month, and new research by Compare the Market finding more than one third of Australians say they have been swindled out of cash by a scam.

The research found emails are the most common way consumers are being caught out (16.1 per cent), followed by phone calls (12.2 per cent) and text messages (11.3 per cent).

“A third of Australians have been hit by a scam – that’s extraordinary,” Koch said.

“I have been at war against these scammers for a couple of years now, who just leverage my image and fake comments that they make up and put my name to it.”

Koch, who became Compare the Market’s economic director in August, said one elderly woman had contacted him after losing $15,000 on a cryptocurrency scam involving fake recommendations she saw on a Bible app.

Compare the Market economic director David Koch says governments must act.

“Legitimate media providers – newspapers, TV and radio – are responsible for people who advertise on their platforms,” he said.

“My view is that these digital platforms have to be responsible for the advertising money that they take from these scammers … there is a precedent in the UK for taking defamation action against platforms that run these scam ads.”

Koch said while it was difficult to combat scammers because they were “sophisticated and relentless”, people could:

• Increase awareness and “don’t get sucked into it”.

• Remember that if it seemed too good to be true, it was.

• Double check whether investment promoters were licensed, read reviews, and visit Scamwatch.gov.au.

• Have good email filters and “just keep blocking”.

“There’s no protections at the moment … I think government regulation on platforms has got to catch up with this and say ‘you are liable now if people lose money on a scam ad that you served up to them’.

“If these platforms can take down what they think are offensive posts in an instant, they can certainly do it with scam ads.”

In the past month ING has warned of an ING email impersonation scam that advertised fake term deposit rates, and Bendigo Bank said investment scams were swallowing around half the money lost by Australians.

“A scam might look like a genuine ad or might come from someone you’ve met online – even someone you know or trust,” Bendigo Bank head of fraud Jason Gordon said.

NAB CEO Ross McEwan told a business briefing this month that safeguards against scammers were increasingly needed for the digital age.

“The growing, global rise in scams is being led by co-ordinated and well-resourced multinational crime networks,” Mr McEwan said.

Scammers are organised and multinational, consumers are being warned. Picture: iStock

Meanwhile, the Commonwealth Bank said a majority of Australians were more scam-aware than ever before, and three quarters had become more concerned about scams in the past 12 months.

“Remember to stop, check and reject when sending money or banking details,” said CBA’s general manager of group fraud management services, James Roberts.

“We all have more to do, including continuing to strengthen our defences across all financial institutions, telcos, government, social media and digital platforms,” he said.

In late August Westpac announced new digital payment security features to help combat scam losses, with new digital prompts helping to better assess scam risks.

“This is about helping customers spot potential red flags before any funds have actually been sent,” Westpac CEO Peter King said.