NAB News

Term deposit investment scams

How the scam works

Criminals know many Australians are currently feeling cost of living pressures and have responded with term deposit scams promising lucrative returns.

Ms Hartley said term deposit scams were a type of investment scam impersonating banks or financial companies.

“Investment scams are consistently among the top scams impacting our customers,” Ms Hartley said.

“This version involves criminals impersonating banks or financial companies with fixed term deposits with impressive rates, glossy brochures, and professional follow up.

“We had a business bank customer nearly lose $200,000 to a ‘Citibank’ term deposit offering 6.8%.

“We also had a Tasmanian customer come into a branch wanting to transfer $80,000 to an investment firm in Perth with a rate of 12%,” she said.

“In both instances, a banker spotted the red flags, had lengthy conversations with the customer and was able to stop the crime before it happened.”

Red flags to look for

• Someone contacting you out of the blue with a term deposit investment opportunity.
• Term deposit claims to ‘beat inflation’ or offer guaranteed high returns.
• Term deposit rates are higher than rates on similar products.
• Advisor “helping” you claims they don’t need an Australian Financial Services (AFS) license.

How to protect yourself

• Seek independent legal advice, or financial advice from a financial advisor registered with ASIC.
• Independently find the contact details of the person you’re speaking to.
• Get a second opinion from someone you trust.
• Look for reviews of the term deposit offer.
• Search online for the company or term deposit offer and the word “scam”.
• Search ASIC’s investor alert list, which includes suspicious companies, businesses and websites.
• Check the BSB before you transfer money to confirm the name of the payee.

Romance scams

How the scam works

Romance scammers set out to steal your heart in order to steal your money. These scams often start via social media platforms or dating apps.

The more traditional variety can go on for months, or even years, while others can happen quickly and result in requests for you to share compromising, nude images. The criminal will then immediately threaten to make them public unless you pay them.

Ms Hartley said while many long-lasting relationships started online, it was important to know how to spot a scammer from a potential partner.

“These criminals prey on people looking to find love or a hook up and these scams can have devastating effects, both financial and emotional,” she said.

Red flags to look for

• Social media or dating profile is inconsistent with what you see and hear when you talk or chat to the person.
• The person you’re talking to suggests moving the conversation from social media platforms or dating app to a private chat or channel.
• The person you’re talking to expresses strong emotions for you almost straight away and becomes sexual in nature.
• A request for money for medical, travel or business emergencies
• You’re pressured to send nude photos or videos.
• The person you’re talking makes excuses about their webcam not working.

How to protect yourself

• Do not transfer money.
• Stop all contact with the person.
• Do a reverse image search of photos you’re sent on a search engine like Google or TinEye to see if they’ve been used on other platforms or linked to other names online.
• Seek advice and information from trusted sources like the eSafety Commissioner if asked to send nude photos.
• Report what’s happened to your bank, police and social media platforms.
• Contact IDCARE, a national cyber and identity support service that provides free, confidential advice for individuals.

QR code phishing scams

How the scam works

QR codes had a resurgence during the pandemic and have become a new lure for phishing scams.

QR phishing – also known as ‘quishing’ – involves criminals trying to get you to hand over personal information or download malware so they can steal your money or details.

Instead of tricking you into providing personal details by clicking on a link in a text message or email like traditional phishing, scammers hide malicious links in the pixelated squares of QR codes.

Ms Hartley said scammers used a plethora of ways to target people with QR phishing.

“QR phishing can appear as emails claiming a package hasn’t been delivered or that there’s a problem with your account and allows criminals to target thousands of people at once,” she said.

“Criminals can also hide dodgy links in QR codes in places like parking payment stations, restaurant menus and signs for free public wi-fi.”

Red flags to look for

• Being asked to scan an unsolicited QR codes you receive via email, text, or social media from unknown or untrusted sources.
• Being asked to download apps or files after scanning a QR code.
• Being asked to give permission to your mobile phone or computer’s camera, location, microphone or accessibility features after scanning a QR code.
• Look for tampering of QR codes in public like a restaurant or car park to make sure a sticker hasn’t been placed on top of a legitimate code.

How to protect yourself

• Be very suspicious of QR codes from unexpected sources. If in doubt, delete it.
• Look for typos and spelling mistakes in the URL address.
• Keep your phone and computer updated with the latest version of apps and trusted anti-virus software.