Social media scams dominate losses in 2024

Scammers exploiting online platforms fleeced Australians out of $58 million, topping all other fraud categories.

Australians lost $58.3 million to social media scams this year, according to the ACCC, but there are signs a multi-agency crackdown is working.

Deputy chair Catriona Lowe called social media a “gold mine” for scammers, costing more than any other scam method in the first 10 months of 2024.

“In the September quarter alone, we saw a 146 per cent increase in reported financial losses linked to social media,” Lowe said.

Social media scams were substantially more financially damaging per incident despite being less frequently reported by victims.

While they accounted for over one-fifth (22 per cent) of the $262 million lost to scams in 2024, they only represented 7 per cent of total reports to Scamwatch.

“It shows just how lucrative these scams are for the criminal groups behind them – and serves as a reminder to us all of the need to be suspicious of anyone who unexpectedly contacts us on social media,” Lowe said.

Of the $58.3 million lost to social media scams, Scamwatch data showed the top categories were investment scams ($39.2 million), romance scams ($9 million) and job scams ($4.5 million).

Fraudsters often created fake social media profiles, posing as trusted individuals like financial advisers, romantic partners or recruiters to deceive victims into handing over money or personal information.

“They learn a lot about you from what you share on social media and trick you into sharing personal information, which they then use to target you in other scams,” Lowe said.

It comes as the ACCC’s National Anti-Scam Centre delivered an update on its crackdown on job and employment scams.

Since launching a job scam fusion cell to co-ordinate anti-scam action between the government and industry in September, the ACCC said NASC had taken down over 200 job scam websites and referred over 200 phone numbers for disruption.

It said it was also working with law enforcement, government agencies and cryptocurrency platforms to freeze or restrict cryptocurrency wallets being used in job scams.

“The fusion cell is already proving effective in disrupting the activities of criminal groups who are stealing from Australian job seekers by advertising or offering jobs that do not exist,” the ACCC said.

It is the second fusion cell launched by NASC since it commenced work in July in the ACCC last year.

An investment scam fusion cell that ran from August 2023 to February 2024 removed over 100 scam advertisements and 220 websites and diverted 113 consumer calls to a recorded warning.

“Job scams involve criminals posing as legitimate businesses or recruiters and targeting jobseekers with lucrative offers to complete tasks – deceiving their victims into handing over money,” Lowe said.

“This public-private taskforce has brought together expertise from social media platforms, online employment websites, banks, cryptocurrency platforms, law enforcement, and commonly impersonated businesses to tackle these scams.”

By Christine Chen
10 December 2024
accountantsdaily.com.au

Mark Lisle

Mark is our managing partner and has been with the firm for over 36 years. He brings a wealth of experience in all areas of our business, including business advisory, taxation and self managed superannuation.

Mark’s ethos is that good advice stems from working closely with our clients and being prepared to go that extra step to assist them in meeting their goals and optimising their financial position.

Mark is a Fellow of Chartered Accountants Australia and New Zealand, an accredited SMSF Specialist and a registered SMSF auditor.

Outside of work, Mark enjoys trying to keep fit and spending time down at his “second home” in Port Fairy.

Josh Laing

Joshua began working at Rundles in 1999 whilst still completing his Bachelor of Business (Accountancy) degree at RMIT. After graduating in 2001 he was admitted to the Institute of Chartered Accountants Australia and New Zealand in 2004. Joshua spent two years working in London before returning to Rundles in 2006.

Josh has a wealth of knowledge across a broad range of industries as well as in Self Managed Superannuation. Josh enjoys working with family groups and businesses to ensure they’re structured correctly to maximise asset protection, succession planning and management of tax.

Married with 2 children, Josh spends his weekends with his family and following the Tigers.

Brad Roach

Brad has been a part of the Rundles Team since 1996 and became a Partner of the firm in 2014. During his time at Rundles, Brad has developed a strong relationship with his clients across a wide range of industries and is dedicated to assisting them to reach their personal and business goals.

Brad is passionate about seeing his clients succeed and utilises his extensive experience in public practice to provide a holistic service to his clients. He also has a wealth of experience in superannuation, particularly self managed superannuation funds.

In his spare time, Brad likes to play a round of golf with friends and enjoys watching his two sons play various sports.

Peter Davison

Peter graduated from RMIT with a Bachelor of Business (Accountancy) with distinction in 1976. He joined Rundles upon graduating. Peter has been a member of the Institute of Chartered Accountants since 1979 and a Fellow since 1991. As an active yachtie of many years, Peter can often be found on the water. Otherwise, he and his wife spend time with their friends and extended family.

Sandy Gilbert

Sandy was admitted to the Institute of Chartered Accountants in 1973 and has been a Fellow since 1983. He gained extensive experience in auditing and accounting services over seven years at Pannell Kerr Forster before joining Rundles in 1973. Sandy is married with three children. A former amateur footballer of some note, Sandy is still an avid follower of the game and enjoys weekends at his country retreat.