Financial Scam Statistics 2024

Millions of people are hurt by or encounter a scam every year, but the sheer number of them might be much more than you imagined.

This article provides a comprehensive snapshot of financial scams in 2024, exploring just how much money we lose to scams each year.

We’ll also examine new trends in financial scams, explain what they are, how to spot them, how to report them, and delve into the psychology behind why people fall for them.

On this page:

• What are financial scams?
• What are the different types of financial scams?
• Australians lost $2.7 billion to scams in 2023
• Financial Scam Statistics 2024
• The psychology of scams: why do we fall for them?
• How to spot financial scams: common red flags
• How to report financial scams when you see them

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What are financial scams?

Financial scams are fraudulent schemes designed to steal money or personal information from individuals. These scams can take many forms, and rather than the good old-fashioned way of stealing money or just taking it, scams aim to deceive and trick people instead.

What are the different types of financial scams?

Financial scams can take many forms, and the number of different types of scams has increased dramatically in recent years as cash transactions and in-person banking are steadily replaced by technology.

Understanding the various types of financial scams is crucial for recognising and avoiding them. The most common ones are as follows (click to jump to each one):

• Phishing scams
• Hacking scams
• Identity theft scams
• Investment scams
• Card fraud
• Dating and romance scams
• Jobs and employment scams
• Fake charity scams

Phishing scams

Phishing scams are one of the new types of scams. In these, fraudsters send emails or messages that appear to be from legitimate people or businesses but are actually fake.

These phishing messages often contain links to fake websites designed to steal personal information such as login credentials, credit card numbers, or other sensitive data. 

Phishing scams can be highly convincing, leveraging logos and branding from legitimate companies to trick victims into providing their information. However, as we explain further, there are some telltale signs of a phishing scam.

Hacking scams

Hacking scams involve cybercriminals gaining unauthorised access to computers, networks, or online accounts. Once hackers obtain access, they can steal personal information and financial data or even take control of systems for malicious purposes. 

These scams often exploit software vulnerabilities or use techniques like malware and ransomware to infiltrate systems. Hackers can also use phishing techniques (above) to trick people into giving them access to their personal accounts. 

Victims may find their personal files encrypted and held for ransom or their financial accounts drained.

Identity theft scams

Identity theft occurs when someone unlawfully obtains and uses another person's personal information, typically for financial gain. This can include stealing driver’s licence numbers, bank account details, or credit card information.

Victims of identity theft may face long-term consequences as fraudsters open new accounts, take out loans, or make large purchases in their name. 

According to the Australian Bureau of Statistics (ABS), identity theft affected 199,100 Australians in 2022-23.

Investment scams

One of the more harmful types of scams is investment scams, which lure people into investing money in fake opportunities, often with promises of high returns and low risk. These scams can take many forms, including Ponzi schemes, pyramid schemes, and phony cryptocurrency investments.

Scammers may pose as financial advisors or representatives of legitimate investment firms. 

Card fraud

Card fraud involves the unauthorised use of someone’s credit or debit card information to make purchases or withdraw funds. Scammers may steal card details through skimming devices, data breaches, or online phishing schemes.

Victims often discover fraudulent charges on their accounts, which can lead to financial loss and the need to cancel and replace their cards. But sometimes, it can be too late.

The ABS has noted a significant rise in card fraud cases in recent years, reflecting the increasing use of digital and contactless payment methods. In 2022-23, an estimated 1.8 million Australians aged 15+ experienced card fraud, an 8.1% increase from the previous year and nearly 9% of the country.

Dating and romance scams

Dating and romance scams exploit the emotions of people seeking relationships online. Scammers create fake profiles on dating websites or social media platforms, building trust with their targets over time. 

Once a solid emotional connection is built, the scammer typically asks for money, often claiming it's for an emergency or travel expenses to visit the victim. 

These scams can result in significant financial and emotional distress for the victims.

Jobs and employment scams

Jobs and employment scams take advantage of people looking for work by posting fake job listings on legitimate job sites or sending job offers directly to them. 

They may ask for personal information, such as bank account details, under the guise of processing job applications or setting up direct deposit. In some cases, victims are asked to pay upfront fees for training or equipment, only to find out that the job does not exist.

Fake charity scams

Fake charity scams take advantage of people's natural generosity, particularly during times of crisis or natural disasters. Scammers pose as representatives of legitimate charities, soliciting donations for causes that tug at the heartstrings. 

They may set up fake websites or contact potential donors directly through phone calls, emails, or social media.

Australians lost $2.7 billion to scams in 2023

Before we discuss the up-to-date stats for this year, it’s important to consider the previous year for context.

The Australian Competition and Consumer Commission's (ACCC) Targeting Scams report found that in 2023, Australians lost $2.74 billion to scams. That’s actually a 13.1% decline from 2022, which, according to ACCC Deputy Chair Catriona Lowe, is mainly due to an 18.5% increase in scam reports to authorities (601,000 in total).

“It is encouraging to see signs that our coordinated scam prevention, detection and disruption initiatives can stem the flow of funds to criminals and protect consumers,” Ms Lowe said.

“We will continue this important work because losses remain too high and behind the numbers are real people who have lost money, often every last cent, to scams.”

Financial Scam Statistics 2024

These statistics are taken from the ACCC’s Scamwatch Statistics dashboard, which is updated monthly. The data encompasses the first six months of 2024 and does not show full-year stats:

• Total scam losses in 2024
• Scam losses by type in 2024
• Top contact methods for scammers in 2024
• Scam losses by state/territory in 2024
• Scam losses by age and gender

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Total scam losses in 2024

By the end of June 2024, nearly $135 million in scam losses had been reported from a total of 143,000 scams. 

Broken down by month, January was the most prolific for scams, with over $25.6 million lost. 

Scam losses by type in 2024

Investment scams are far and away the worst way we lose money, with just shy of $79 million lost so far in 2024. By comparison, romance scams in second place saw losses of ‘only’ $11 million or so.

Investment scams were also the biggest boon for scammers the previous year, causing $1.3 BILLION in losses throughout 2023.

Top contact methods for scammers in 2024

In 2023, text messages were the most reported contact method, with 109,621 reports: a 37.3% increase from 2022. This trend has continued in 2024, with almost 58,000 reported text scams reported in January- June. 

Scam calls, however, resulted in the highest reported losses last year at $116 million.

The table below shows the most prominent methods scammers use to contact us in 2024:

Scam losses by state/territory in 2024

Unsurprisingly, NSW reported the most scams and the highest amount lost, losing more than $50 million to scammers so far in 2024. Victoria is a close second, with just under $28 million lost already.

Scam losses by age and gender

Older people are particularly vulnerable to scammers, with the ACCC finding that people over 65 saw a 13.3% increase in scam losses in 2023 ($120 million in total). 

In terms of gender, men accounted for more (54.29%) scam losses than women (43.05%) and others (2.66%).

“Reports to Scamwatch indicate scammers are targeting older Australians with retirement savings, who may be looking for investment opportunities,” Ms Lowe said.

“We know of a recent case where an elderly woman lost her life savings after seeing a deepfake Elon Musk video on social media, clicking the link and registering her details online. She was assigned a ‘financial advisor’ and could see on an online dashboard she was apparently making returns, but she couldn’t withdraw her money.”

The psychology of scams: why do we fall for them?

Scamming isn’t a new phenomenon; it’s been around for a long time. Scammers continually devise new and more advanced ways of deceiving people, something that’s never been more accurate since the creation of the Internet. All other age groups reported a decrease in losses.

According to UNSW’s Dr Kam-Fung Cheung and Shesha Maheshwari, there are six key reasons people fall victim to scams:

1. Financial desperation: When faced with financial difficulties or a desire for quick monetary gains, people become more vulnerable to scams promising easy money or high investment returns.
2. Social engineering: Scammers personalise their scams by leveraging information gathered from social media and other sources, making them appear more legitimate and trustworthy.
3. Lack of awareness: A lack of understanding regarding evolving scam techniques, such as those involving cryptocurrencies and blockchain, makes individuals more vulnerable.
4. Emotional triggers: By creating a sense of urgency, fear, or excitement, scammers impair rational thinking and compel individuals to make impulsive decisions.
5. Trust and authority: By posing as government officials, company representatives, or law enforcement officers, scammers exploit trust to convince victims to share personal information, provide access to financial accounts, or make financial transactions.
6. Lack of vigilance: Busy lifestyles and constant distractions contribute to a lack of vigilance, causing individuals to overlook warning signs or suspicious behaviours.

“Scammers are skilled at exploiting vulnerabilities and manipulating people's emotions and trust,” Ms Maheshwari said.

“Awareness and vigilance play an important role in safeguarding against frauds and scams. 

“Staying informed and maintaining a sceptical mindset empower individuals to make informed decisions and protect themselves from falling victim to scams.”

It’s important to note that the most common emotion associated with financial scams is shame. People feel embarrassed to have fallen prey to a scam, which is why the ACCC says the actual value lost to scams is higher than reported:

“Whatever statistics are ascribed to scamming, it is highly likely they vastly underestimate the real amount of money being lost by Australians.”

How to spot financial scams: common red flags

Recognising the signs of a financial scam is crucial in preventing victimisation, whether it’s for you or a loved one. 

There are almost always some telltale signs something is a scam, which tends to include the following:

• Unsolicited communications asking for personal or financial information
• Offers that seem too good to be true, promising high returns with little risk
• Pressure tactics urging immediate action or just straight-up threats
• Requests for payment through unconventional methods, such as gift cards or cryptocurrency
• Poor spelling and grammar in the communications
• The social media handle/name looks slightly different to official accounts

A healthy dose of scepticism about money can also help prevent scams. Always take a bit of extra time to think about anything that involves sending money or entering personal details. 

If you think you’ve fallen victim to a scam, contact your bank or lender immediately, change your passwords and freeze/cancel your cards.

Secure financial institutions can help detect scams, too

Your choice of bank or lender for financial products can make a big difference when it comes to detecting financial scams. As scammers become more advanced, so does the technology to prevent them.

For example, Commonwealth Bank recently reported a 50% reduction in scam losses in 2024 after introducing a host of anti-scam technologies.

“Over the last financial year, CommBank has continued to add market-leading anti-scam technologies to protect Australians while collaborating across industry – including with other banks and telcos Telstra, Optus and Vodafone,” James Roberts, CommBank General Manager of Group Fraud, said.

“CommBank’s anti-scam initiatives are having a meaningful impact. CommBank customer scam losses halved compared to the previous financial year, with CommBank NameCheck technology preventing scam payments worth more than an estimated $40 million. 

“Whilst this is encouraging, we acknowledge that Australians continue to lose money to scams and banks will continue to do more, and importantly telecommunications and social media platforms need to step up, to further suppress consumer losses.”

How to report financial scams when you see them

If you suspect you’ve encountered a financial scam, it’s important to report it promptly. The ACCC emphasises how important it is to do so, as this helps authorities track ongoing scams and stop more before they start. 

The primary way to report financial scams is through the Scam Watch website, but that’s not your only option. Here’s a detailed breakdown of where you can report certain types of financial scams:

Type of incident	Agency
Banking	Your bank or financial institution
Centrelink, Medicare, Child Support, and myGov related scams	Services Australia Scams and Identity Theft Helpdesk - call 1800 941 126
Cybercrime	ReportCyber
Financial and investment scams	Australian Securities and Investments Commission
Fraud and theft	Your local police - call 131 444
Image-based abuse (sextortion),cyberbullying and illegal content	Office of the eSafety Commissioner
Spam	Australian Communications and Media Authority
Tax-related scams	Australian Taxation Office

Watch out for scammers impersonating Jacaranda Finance

Jacaranda Finance would like to remind customers to stay vigilant about protecting their personal accounts.

As with most financial institutions, scammers impersonating us are fairly common, so here’s what you need to know to help you tell the difference between us and a potential scammer:

• We will never message you from our social media pages - only our official communications channels.
• We will never message or call you from an individual employee's personal social media account/phone number for anything related to obtaining personal information.
• We will never ask you to screen share or allow us access to your personal devices.
• We will never ask you to send us money outside our official communications channels. Repayments are managed online or by speaking to one of our customer service representatives.
• We will never ask for any other form of payment, such as cash, payment to an individual bank account, payment via gift cards, etc.