We can’t afford to be ashamed about getting scammed

Believing that someone or something is legitimate until proven otherwise is human nature to most of us. When that trust is violated, and money taken along with it, shame surfaces. Many victims report feeling as if they were somehow complicit in the con, or that they brought it on themselves by not being savvier.

The “Hi mum” and “Hi dad” text message scams, in which scammers pose as children who have lost or broken their phone and need to be contacted on a different number – and to be sent money – is a perfect example of this.

For those without kids, the message was an obvious hoax. But to many mums and dads, the message looked and sounded authentic and pulled on the heartstrings of parents worried about their children’s safety. While the scam itself was widely reported, it is still unknown how many people were successfully scammed and the final amount stolen.

The success rates of these scams show up in the data, too. According to the Australian Bureau of Statistics, the most commonly scammed age group among Australians is those aged 35 to 44, with men and women falling victim to scams at roughly the same rate.

Many people who have been scammed will admit to not reporting the issue at all, or only flagging the issue with their bank, most often in a bid to retrieve the stolen funds. The problem with this, though, is that it means we don’t have a truly clear picture of how often scams are occurring, and the rates of success in tackling this scourge.

Data from the ABS shows that, in 2023, 48.9 per cent of people scammed reported it to their banking institution, but only 12.6 per cent reported it to the police. Even fewer victims – just 8.7 per cent – reported their experience to government organisations like the ACCC, Scamwatch and the National Anti-Scam Centre, which was established last year by the government to tackle the growing crisis.

Many assume that even if they are scammed, the bank will step up to support them in retrieving the money. In the UK, that’s precisely what happens: banks are legally required to reimburse scam victims.

In Australia, though, not only do the same requirements not apply, banks are also not required to report the number of attempted or successful scams their clients experience.

One report from the Australian Securities and Investments Commission found that 31,100 customers across the big four banks collectively lost more than $558 million during the 2021-22 financial year to scams, with a reimbursement rate for victims of between just 2 and 5 per cent. Currently, the telecommunications industry is the only regulated sector in the scamming space.

As the figures show, the average scam can cost victims tens of thousands of dollars. And it’s important to remember that scamming is like any other crime.

Shame is an understandable reaction, of course, but consider this: would you report your house being broken into or your car being stolen? And, if you knew reporting those crimes could help keep your neighbours and the broader community safe, would you? If the answers are yes, consider why those are crimes you would report, but not being financially scammed.

Victims of scammers have nothing to feel embarrassed about. Only in reporting scams more frequently can we better manage the problem and keep others protected and secure.

Victoria Devine is an award-winning retired financial adviser, best-selling author and host of Australia’s No.1 finance podcast, She’s on the Money. Victoria is also the founder and director of Zella Money.

• Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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