If you suspect you have been swindled by a scam, you are not alone. ACCC Scamwatch reports that in 2023, investment fraud cost Australians $2.74 billion in losses.

When you have been targeted by scammers, taking urgent action is critical to preventing further financial losses and protecting your personal information.

But what should you do if you have been scammed?

In this simple guide, we explain the first steps for victims of scams to follow. Read on to find out how to identify fraud, who you should contact in its aftermath and how.

Signs you have been targeted by a scam

Ideally, all investors would carry out thorough due diligence before investing. However, there are times when the due diligence is flawed or a warning sign is missed. There are instances when we are rushed and merely trust our gut instincts.

With investment fraud, scams can involve:

• An offer that simply doesn’t exist;
• An offer that exists but your money isn’t going into it; or
• A scammer pretending to represent a well-known company.

Using high-pressure sales tactics, the scammers aim to get you on board for a great deal. This is the case in forex scams, boiler room scams and many other types of serious fraud.

Signs that you may be dealing with scammers include when they:

• Try to force you into a rushed decision;
• Have no evidence of an AFS licence;
• Have no prospectus registered with ASIC; or
• Are based overseas, as the activity may be illegal in Australia.

5 steps to follow if you have been scammed

Don’t let scammers vanish with your hard-earned savings or identity. Here’s what to do if you have been scammed in Australia.
 

1. Take urgent action to protect your assets

To prevent further harm, make sure to follow these steps as soon as you feel that you have been scammed.

1. Stop sending money immediately. Cut off all communications with the scammer and do not share any more information or funds. Avoid clicking on any links or using any phone numbers they’ve provided.
2. Whether or not you have already sent money, contact your bank or financial institution right away to report the scam. They might be able to stop pending transfers and close your account.
3. Tell your family and friends about the scam so they can be on the lookout for any potential follow-up scams.

If the scammer has swindled your money

Here’s what to do if you’ve transferred money to a scammer in any of the following ways:

• Cash – if sent by post, contact the delivery service to request they return the package to you.
• Credit or debit card – Report the scam to your bank or card issuer immediately and request them to halt any transactions.
• Money transfer app – Report the scam to the app provider (as opposed to the app store).
• Wire transfer – Report the scam to the wire transfer company used.
• Cryptocurrency – Report the scam to the platform that the crypto was transferred on.
• Unauthorised transfer – Report the scam to your bank and ask them to freeze your account.
• Gift card – Report the scam to the company that issued the gift card.

If a scammer has stolen your personal details

Some scammers start by stealing personal information, like online logins and passport details, instead of money. Then they’ll strike at a later date using this sensitive information for their financial gain, either through identity theft or blackmail.

From utility bills to medical records, documents in devices, bins, unlocked mailboxes and more can all be accessed with the right strategy.

If your private information has been compromised, follow these steps:

• Inform your bank, super fund and other financial institutions of the data breach.
• Update all online logins with stronger and unique passwords that you’ve never used before.
• Keep a careful eye on your bank account for unauthorised transactions.
• Request a temporary ban on your credit report so that the scammer can’t make any unauthorised credit applications.
• Receive a free plan to limit the damage done by the scam with IDCare, a nonprofit organisation that supports victims of identity theft and cybercrime.
• Notify any other services that may use identity documents to secure your accounts. For example, alert the Australian Taxation Office (ATO).
• Block any suspicious emails, phone calls, texts or social media messages.

If the scammer has accessed your device

A scammer may impersonate a representative from your internet or phone provider, claiming you have a technical issue and requesting access to your device. Alternatively, they may infiltrate your software systems via malware.

Whichever strategy is used, once a criminal gains access to your device, they can infect it with a virus to steal your personal and financial information.

This is what you should do:

• Notify your mobile phone provider if the scammer has accessed this device.
• Update all security software and scan for viruses.
• Change your passwords, PINs and phone number.
• You may also want to have an IT professional examine your device.

 

2. Report the scam

The next step in what to do if you have been scammed is to report the crime to suitable agencies. These organisations can leverage the information you share about a scam to track down its perpetrators and alert the public of its presence.

You should also contact relevant authorities, which can vary depending on the type of scam. Keep a record of all the details you can get from scammers. This includes email addresses, phone numbers and details of conversations, as they can also help.

Some common reporting bodies for scams are:

• ACCC – Warn others of an online scam by filing a report with Scamwatch.
• ASIC – Report financial misconduct, including superannuation and cryptocurrency scams, to Australia’s national corporate regulator.
• ACSC – Report cybercrimes and security incidents via ReportCyber to help combat criminal operations (here’s how to report cybercrime).

Local police may also be useful, but often cannot act in multi-jurisdictional situations.
 

3. Keep an eye out for follow-up fraud

Once fraudsters have their hooks in, they always strive for more money. And if they’ve scammed you already, you’ll remain on their radar.

Therefore, unfortunately, past victims of investment fraud are at greater risk of being targeted again.

Avoid emails, block text messages and hang up the phone, if anyone:

• Proposes exchanging your investment for another to recover your losses.
• Advises you to wait it out, claiming your investment will soon rise in value.
• Offers to buy your shares at a high price but demands a fee to lift ‘restrictions’.
• Asks for payment for a fake share certificate.
• Claims to be from a third-party organisation that can recover your assets for a percentage of the recovered amount or a fee they call a ‘tax’, ‘retainer’, ‘deposit’ or ‘refundable insurance bond’.
• Requests payment for travel and accommodation costs to track down the scammer who pocketed your money.

Scammers may use these ploys to attempt to steal even more money from you.
 

4. Seek scam investigation and asset recovery services

Once a scammer has your money, it will not be given up voluntarily. And while there are some great services for recovering assets from local scams (including Fair Trading NSW for those originating in New South Wales), it is more difficult when they are based internationally.

In cases that originate overseas, specialist lawyers or international fraud investigation agencies like IFW Global can help. IFW Global has offices in four key countries and experience in multi-jurisdictional asset recovery.
 

5. Get emotional and financial support

Being scammed is a highly distressing experience, both emotionally and financially. The good news is that free support services are available to victims of this crime.

If a scam has led to debt, meet with a financial counsellor. This confidential and complimentary service can assist you in managing your finances after fraud.

You may also find that this crime has impacted your mental well-being. Know that you can gain emotional support from kind professionals 24 hours a day, seven days a week.

Simply get in touch with:

• Beyond Blue on 1300 22 4636 or online
• Lifeline on 13 11 14 or via the Crisis Support Chat

Take action with IFW Global

Now that you know what to do if you have been scammed, you are ready to take immediate action.

At IFW Global, we specialise in assisting victims of fraud with scam investigations so that they can track down the offender and seek justice. Contact us now to book a consultation.
 

Download our free ebook

To find out more about how an international investigation team can help recover assets from cybercrime, online scams and investment fraud, download the IFW Global free ebook – Online Investment Fraud: Recover Your Stolen Assets. It contains details of common investment scams and case studies of successful asset recovery.