By Warwick Brown
If you’re over 50 and looking to secure your financial future or find companionship, you’re squarely in the crosshairs of Australia’s most ruthless scammers. Recent figures paint a sobering picture: losses for people over 65 jumped by 13.3% in 2023 to $120 million, while all other age groups saw their losses decrease.
Even more concerning, major superannuation funds including REST and AustralianSuper have been hit by coordinated cyber attacks this year, with some members losing thousands of dollars from their retirement savings. The message is clear: scammers are specifically hunting older Australians, and they’re getting better at it.
The investment trap: When ‘guaranteed returns’ guarantee loss
The most devastating scams targeting older Australians are investment schemes that promise the impossible: high returns with little or no risk. These criminals prey on retirees and near-retirees looking to stretch their savings or generate income.
Take the case of one elderly woman who lost her entire life savings after seeing what appeared to be Elon Musk promoting an investment opportunity on social media. The video was actually a ‘deep fake’ – artificial intelligence technology that can make anyone appear to say anything. After clicking the link and entering her details, she was assigned a ‘financial advisor’ and given access to a fake online dashboard showing her ‘investment’ making returns. Of course, when she tried to withdraw her money, it was gone.
The sophistication of these scams is increasing rapidly. Criminals now use artificial intelligence to create more convincing emails, websites, and even phone calls. They’re also using information stolen from previous data breaches to make their pitches seem legitimate by including personal details like your name, address, or even old passwords.
Red flags for investment scams
- Promises of guaranteed high returns with no risk
- Pressure to invest quickly or miss out
- Unsolicited contact through social media or cold calls
- Requests for remote access to your computer or accounts
- Professional-looking websites that disappear overnight
Romance scams: preying on the heart and wallet
Scammers have also discovered that targeting the recently divorced, widowed, or simply lonely can be incredibly profitable. These romance scams typically begin on dating websites or social media, but can even start through seemingly innocent friendship requests.
The criminals behind these scams are patient and calculating. They spend weeks or months building an emotional connection with their victims before ever asking for money. They create elaborate backstories – often claiming to be overseas on business, in the military, or dealing with a family emergency.
Research shows that Generation X Australians are particularly vulnerable to dating scams compared to other age groups. The scammers exploit the fact that many people in this age group may be new to online dating after long marriages, making them less aware of the warning signs.
Red flags for romance scams:
- They profess love very quickly
- They’re always travelling or can’t meet in person
- Their photos look too professional (often stolen from models or actors)
- They ask for money for emergencies, travel, or to meet you
- Their grammar or language seems inconsistent with their claimed background
Other threats still lurking
While investment and romance scams are causing the biggest financial damage, don’t forget about the classics that are still out there:
The ‘Hi Mum’ WhatsApp Scam: Over 1,150 Australians fell victim to this in just seven months, losing $2.6 million. Scammers pretend to be your child or grandchild texting from a ‘new number’ because their phone was damaged. They then ask for money to help pay a bill or replace the phone.
Computer Support Scams: These affect about 45,000 Australians aged 55+ each year. Callers claim to be from Microsoft, Telstra, or your internet provider, saying your computer has a virus. They then try to gain remote access to steal your information or install malware.
Your defence strategy: Stop, Think, Respond
The good news is that these scams all rely on rushing you into making decisions. Your best defence is to slow down:
STOP: Take a breath when someone creates urgency. Legitimate businesses don’t pressure you to decide immediately.
THINK: Ask yourself – is this too good to be true? Why do they need my personal details or money right now? Trust your instincts.
RESPOND: Verify everything independently. If someone claims to be from your bank, hang up and call your bank directly using the number on your card. If it’s an investment opportunity, check with ASIC’s website or speak to your financial advisor.
Remember, these criminals are professionals who use psychology and technology to steal from Australians every day. There’s no shame in being targeted – but there’s power in being prepared. When in doubt, talk to family, friends, or authorities before handing over money or personal information.
Your hard-earned savings and emotional wellbeing are worth protecting. Stay vigilant, stay connected with loved ones about potential scams, and remember: if something seems too good to be true, it almost certainly is.
Warwick Brown is the Chief Information Security Officer for a global energy business.
