BDO report outlines major shift in scam landscape for Q3
The delivery method for scams is shifting, with email scams surpassing text message scams, according to the latest BDO Australian Scam Culture report.
BDO has released its Australian Scam Culture Report for the September 2024 quarter, revealing a predominant shift in the delivery method for reported scams.
Since the inception of the firm's scam report, scams delivered via email surpassed scams delivered by text message, with a 23 per cent decrease in scams delivered via text message this quarter compared to Q2.
The report also revealed a decrease in reported scams compared to the June 2024 quarter, the total amount lost to scams had increased by a notable 38 per cent.
BDO said this could indicate that victims may not have reported all scams they encountered during the September 2024 quarter.
According to Scamwatch statistics, the cumulative amount of Australian dollars lost to scams in June 2024 was $22,751,945.65 which increased to $25,985,338.81 in September 2024.
It was revealed that investment scams continued to cause the most financial harm, with a 65 per cent surge in the total amount lost compared to the previous quarter.
The amount lost to investment scams over the quarter totalled $53,814,525, a substantially larger amount than personal information theft at $7,749,214.
“This can be attributed to the current prevalence of tax return scams and cryptocurrency scams. This suggests that while the reported frequency of scams may not have risen the financial impact on victims has grown considerably,” BDO said.
“Investment scams can include cryptocurrency scams, which are becoming popular amongst younger populations and could be contributing to this increase.”
The data highlighted the most targeted age group for scams remained individuals over 65 and the 55-64 age group saw a 12 per cent decrease in average scam losses.
BDO said with the improving detection methods tailored to the demographic, this suggested the 55-64 age group was becoming savvier and increasingly aware of scam tactics.
“This trend is encouraging, as it indicates that awareness campaigns and educational efforts are likely having a positive impact,” the firm said.
“Detection measures appear to be yielding positive results amongst the 55-64 age group with a decrease in scams reported by this demographic, however, it is important to stay vigilant and continue efforts in scam awareness.”
The reduction in losses among the 55-64 age group could be attributed to increased awareness, technological improvements, community support and targeted education programs.
SME financial institutions in Australia were continuing to grapple with significant challenges due to limited funds and resources in comparison to the larger industry entities, according to the report.
Smaller entities often found themselves at a disadvantage, particularly when it came to the costs and expertise required to design and implement risk frameworks that ensured regulatory and legislative compliance.
To aid SMEs in fighting against scams, the report suggested that the Australian government consider the scale of the impact of its regulatory and legislative decisions across the financial community.
“Overall, addressing the challenges across financial institutions requires a more inclusive approach to regulatory and legislative processes,” BDO said.
“By considering the needs of all players in the financial sector, the government can help create a more secure and equitable environment that uniformly discourages scam activity.”
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