Julian, an accomplished graphic designer recognized for his digital savviness, recently fell prey to a smart online ruse. This scam was particularly insidious in that it preyed on his feelings and trust. Even with his expertise, he got sucked into a world of psychological warfare that had been set up by a cold blooded con artist. This experience, though, sparked a desire in him to ensure that other people don’t fall into the same traps.
This saga started after Julian picked up the phone to what he thought was the Australian Taxation Office (ATO). The caller further exploited Julian’s sense of urgency by threatening Julian with prosecution for supposed tax problems. In a rare moment of vulnerability, Julian let us know how hard the pressure got to him. He was extorted to purchase multiple gift cards as evidence of his “good faith.”
“It took five minutes for me to call the ATO and confirm what the scammers say is false,” Julian recounted. His rapid-fire fact-check beautifully demonstrated just how deceptively easy it is to fool you when you are in an emotionally vulnerable state.
This made it possible for the scammer to keep Julian on the line for nearly two hours. That pressure ensured he processed the payment before he had time to reconsider. This is a relatively new form of manipulation, and it’s being used more and more as scams grow more sophisticated.
“Scams are getting better at pushing our buttons, making us anxious or emotional in some ways,” explained Professor Jeannie Patterson from Melbourne Law School. “When people’s emotions are heightened, their judgment goes out the window.”
The Australian Competition and Consumer Commission (ACCC) reports that online shopping scams are now the most prevalent type of fraud. “Cybersecurity phishing scams, for example, have exploded. Scammers deceive people into sharing sensitive information, leading to mind-boggling monetary damages of $19.5 million just so far this year. Complaints of fraud leading to monetary loss have increased by over 40.5% from last year. ACCC Deputy Chair Catriona Lowe recently explained how this increase in cost disproportionately impacts culturally and linguistically diverse Australians, including First Nations Australians.
“For culturally and linguistically diverse Australians, that number was a 44 per cent increase in reports involving losses, and for First Nations Australians, it’s 55.3 per cent,” Lowe stated.
Julian understands the urgency of these threats. He has joined forces with the ACCC to promote awareness of scammers’ dangers and help Australians learn how to keep themselves safe. He recommends that all those in unstable economic positions pause and consider choices that could result in irreversible regret.
“If you are in a heightened emotional state in a financial situation like that, give yourself five minutes to stop, check, and protect yourself,” he urges.
Lowe stressed that solving this problem will take a collaborative effort from consumers, banks, and regulators. “This is an ongoing battle… It’s about a coordinated effort,” she noted, highlighting the need for investment in technology and proactive measures to catch perpetrators.
Scammers are getting better at developing scammer websites and advertisement so the best defense is knowledge. Catriona Lowe goes on to caution that the days of identifying scams based on blatant mistakes are over. “Gone are the days we could look for the obvious spelling errors… we are seeing highly sophisticated spoof websites,” she said.
