INTHEBLACK June 2022 - Magazine - Page 29
SPECIAL ADVERTISING FEATURE
COMMON FX SCAMS TO
BE WARY OF – PLUS TIPS
FOR HOW TO AVOID THEM
Scamwatch, Australians lost more than
A$177 million to investment scams last year,
as well as A$56 million to dating and
romance schemes – by far the most lucrative
scam types for fraudsters.
As COVID-19 restrictions continue to ease
and people venture out more, Nader believes
we may start to see a return to some
previously used fraud techniques as well.
“Threat actors will approach it as a ‘what’s old
is new again’, but the pandemic has also
hurled us ever more forward into a Digital
Age, which suits fraudsters, who can take
advantage of their online anonymity,” he says.
“Advancement in internet technology will
see more fraudsters exposed; in such a
connected commerce ecosystem, we will
certainly see spikes in attacks via these
devices, as well as continued social
engineering attacks.”
With fraudsters lifting their game throughout the pandemic,
financial crime awareness has never been more important.
S
ending money across international
borders opens up great opportunities
for businesses and global citizens, but
it also creates opportunities for fraudsters,
who have proved themselves a force to be
reckoned with during the pandemic.
Several factors over the past few years
have contributed to the rise of scams linked
to foreign exchange (FX) transfers, explains
Jason Nader, head of fraud and identity at
global money transfer specialist, OFX.
“The pandemic saw a large shift from
bricks-and-mortar retail to e-commerce,” he
says. “Fraudsters and threat actors took
advantage of this and shifted their attacks
to target people using this sector. Phishing
emails and texts quickly shifted to emulate
major online businesses in an attempt to
gain access to clients’ sensitive data.”
The number of online relationship scams
also increased, with people engaging more
with social media and dating platforms,
particularly during lockdown periods.
Even since the start of the war in Ukraine,
Australian authorities have warned people
against sending money overseas, having
been alerted to cases of criminal gangs
promoting Russian romance scams. While
older demographics may have historically
been more susceptible to such crimes, Nader
says: “The reality is we are all potentially at
risk of becoming a victim.
COMMON SCAMS TARGETING
AUSTRALIANS
According to the Australian Competition
and Consumer Commission’s (ACCC)
When you move money around the
world, you need to know it’ll get
there. OFX has over 20 years of
experience managing international
transfers, with on-the-ground
currency specialists and a global
network of banks and regulators, so
you can feel confident about your next
move. Find out how OFX can be an
extension of your team.
HOW TO MITIGATE RISK
Before transferring funds overseas, individuals
and businesses should do their due diligence
on the organisation or person they’re dealing
with. If you’re buying something from another
country, Nader recommends conducting an
open source search of the company; checking
independent reviews; asking friends and family
for their opinion; and always remembering that
if it seems too good to be true, it is.
He also emphasises the importance of
verifying the financial details of anyone
you’re dealing with before transferring funds,
particularly if anything seems amiss, adding:
“If you’re a business and your supplier sends
you new payment details, reach out to them
via phone or another trusted method you’ve
used before and ensure the change actually
came from them.”
While anti-fraud technology now plays a
critical role in preventing scams, Nader says
there’s no “silver bullet or magic tool” that
affords total invincibility. Instead, a layered
approach is required; one that relies on both
digital and human elements to detect and
avert fraud.
“Biometrics, machine learning, AI [artificial
intelligence] and rules-based systems all
have their place, but people will always be
the best anti-fraud tool any organisation
has,” he says. “Education and awareness of
risks is the greatest weapon we can provide
in the fight against fraud.”
intheblack.cpaaustralia.com.au June 2022 29