Skip to content

The real impact of financial scams

We examine the cost of financial scams, the impact they have on Australians, and emphasise the importance of awareness and preparedness in combating cyber fraud.

According to the Australian Competition and Consumer Commission (ACCC), in 2022, financial scams cost Australians an alarming $3 billion. This statistic underscores a growing concern, as the complexity of digital transactions increases, making it more difficult for individuals to stay safe online.

Financial fraudsters are experts at deceiving, manipulating, and exploiting unsuspecting victims into making unsafe financial transactions or investments, or sharing sensitive information. These illegal activities extend beyond financial loss to include money laundering and potentially funding terrorism.

No one is immune to the threat of cyber attacks. As we continue to integrate technology into our daily routines, our exposure to financial scams also increases. Scammers use sophisticated methods, leveraging technology to target a wide demographic, from tech-savvy young adults to older individuals who may not have as much digital literacy.

The consequences of falling victim to a scam extend beyond the immediate financial losses, severe as they are. The psychological impact includes stress, anxiety, and a reduced sense of security, which can disrupt personal relationships and professional lives.

Moreover, these scams have broader economic implications. They can shake confidence in digital commerce, which is vital for the modern economy. Ensuring your financial security becomes critical, not just in protecting your assets but also in maintaining confidence in your financial activities.

Preventing financial scams

Education and awareness are your best defence against financial scams. Recognising the signs of a scam is the first step toward protecting yourself. Watch out for:

  • Unsolicited offers: Be cautious of unexpected contacts or offers that appear too good to be true.
  • Pressure tactics: Scammers often create urgency, pushing you to make quick decisions without proper consideration.
  • Requests for confidential information: Remember, legitimate organisations will not ask for sensitive details through insecure channels.

Being aware of these signs can help you and your loved ones steer clear of potential threats.

What to do if you are targeted

If you think you’ve been targeted by a scam, immediate action can help limit the damage:

  • Report the incident: Secure your accounts by contacting your financial institution and report the scam to bodies like the ACCC.
  • Educate others: By sharing your experience, you can help prevent further victims and raise awareness.
  • Seek support: The distress caused by financial scams can be overwhelming. Professional counselling or support groups can be valuable resources.


As digital technology becomes increasingly embedded in our lives, the risk of financial scams remains a significant threat. However, by staying informed and vigilant, you can protect your financial well-being. It is crucial to cultivate a secure and trustworthy environment around your financial transactions.

The information on the Website is of a general nature only and has been prepared without taking into account your, or any other investor's, particular financial needs, circumstances and objectives. The information on the Website should not be construed as financial, taxation or legal advice. Fenwicke Financial recommends that you seek personal financial advice that addresses your specific needs and situation before making investment decisions.