When it comes to reporting scams in Australia there are multiple reporting agencies and private firms available for reporting which can be confusing. However, on the upside, the process is relatively straightforward. In this article, we’ll discuss our recommended process as well as other factors that are worth considering. Depending on the type of scam, the recommended order listed below may vary as timing is crucial for subsequent investigations. Unfortunately, some agencies listed below aren’t known for timely action.
What Is a Scam?
A scam is an act of tricking someone into handing over money or other tangible assets through false claims of providing a service or product. In Australia and most Western countries, the correct legal term for a scam is ‘fraud’. This is an offence akin to larceny (stealing). In Australia, fraud is an offence that is investigated by state police. Australian Federal Police (AFP) investigate Commonwealth offences and do not have jurisdiction to investigate fraud.
Scams come in a range of forms and the following is a brief description of the more common types.
There are various types, such as:
Phishing scams
Phishing scams are very common and are generally performed via email or a messaging app. For these scams, the victim is tricked into clicking a link and providing sensitive data such as login credentials or bank account information.
Investment scams
Investment scams include cryptocurrency, foreign exchange (forex), contracts for difference, and precious metals, among others. In most circumstances, scammers use fake trading/broker websites to attract victims and convince them that their platform is legitimate. However, everything is fake and there is no trading, just lies.
Many investment scams utilise the Ponzi Scheme method where profits are paid to earlier investors from money invested by newer investors. The money is not actually a profit but a deception that encourages victims to invest more money. This scheme collapses when newer investments dry up and everyone loses money from the scam.
Romance scams
In most cases, romance scams are conducted online as it’s a lot easier for the scammer to remain anonymous. The scammer will manipulate the victim and make a lot of false statements about themselves. Once the timing is right, they will always create a situation where they need money urgently from the victim. These cases can go on for a long time and are designed to maximise the amount of money scammed.
Cryptocurrency scams
This falls under the same category as an Investment scam. See point 2. For further information.
Online shopping scams
This involves fake websites and sellers listed on a range of platforms from Google, Facebook Marketplace to Gumtree. Once payment is received from the victim, the scammer generally disappears.
Why Reporting Scams Is Important
Although it is common knowledge that state police do very little to investigate a scam, reporting a scam is still very important for the following reasons.
- Protect Others: Reporting scams in Australia helps Australian authorities collect intelligence on scams targeting Australians.
- Recover Losses: While never guaranteed, reporting a scam can increase the chances of recovering lost funds through public-private collaboration.
- Raise Awareness: Publicising scams helps to educate the community, making it harder for scammers to operate due to the exposure of their methodology. It can also assist banks with implementing countermeasures for money transfers.
How to Report a Scam in Australia
1. Report to Your Bank or Financial Institution
For financial fraud cases involving bank transfers, it is important to immediately contact your bank to stop transfers to scammers. Likewise, should you have paid the scammer via cryptocurrency, contact Cybertrace to tracing your transaction and identify which exchange the funds were transferred. If you act quickly enough, Cybertrace and/or the state police may be able to freeze the funds before the scammers can withdraw your money.
2. Notify the Australian Cyber Security Centre (ACSC)
The ACSC is operated by the Australian Signals Directorate (ASD) which is a statutory agency within the Defence Portfolio. They hold the portfolio of cyber security in Australia. ACSC also operates the ReportCyber ReportCyber which is a national policing initiative of the Commonwealth, State, and Territory governments. Reports submitted to ReportCyber are triaged and referred to the victim’s local police.
3. Contact the Australian Competition and Consumer Commission (ACCC)
The ACCC hosts Scamwatch who operate a reporting website for scams. They also provide information about how to stay safe online and prevent Australians from falling victim to scams.
4. Contact the Police
Should you not report your case to ReportCyber, contact your local state police and report the case. Although state police are notorious for inaction in scam cases, their cooperation will assist Cybertrace with any attempt to freeze your assets in a crypto exchange and investigate your case based on records obtained from the receiving exchange.
5. Alert the Australian Taxation Office (ATO)
If you transferred funds to scammers that originated from your superannuation, the ATO has a dedicated reporting phone line.
6. Contact iDcare
iDcare is an independent Commonwealth-funded national support centre for victims of identity crime that provide free advice primarily for assisting victims of identity theft.
7. Contact Cybertrace
Cybertrace are an independent Australian registered company that specialises in scam investigations including tracing of cryptocurrency transactions. Cybertrace has been in operation since 2015 and is licensed by the NSW Police Force for private investigations. Authorities are well-known in Australia for failing to undertake timely investigations, if at all. Paying for your own specialist private investigation will ensure that your case is reviewed and investigated almost immediately. Private companies are also not restricted by the bureaucratic red tape that government agencies adhere to meaning that evidence can be identified and captured that is usually outside the capability of a government authority.
What Happens After I Report a Scam?
Authorities may investigate your case after receiving your report especially if there are several other reported cases indicating multiple victims. The process is usually slow and drawn out and rarely do state police identify the offender and take action. This is often very frustrating to victims and can result in significant financial and emotional stress. Cybertrace recommends that you seek assistance from family and community services should you feel unable to cope.
If you choose to report a scam in Australia to Cybertrace, we will review your case within 24 hours and provide you with a range of options. However, are cases of small losses, we may advise you that an investigation is not recommended from a cost/benefit perspective. Should you proceed with our services, you will be quoted and provided with an estimated timeframe for our expert investigators to complete your investigation. After this, we will provide you with a range of options for the next steps in pursuing the offenders.
Should you wish to speak with our team of experts, please contact us on 1300 669 711, or submit a contact form by clicking the below button.
