The Beforepay Beat

10 common scams and you: How to spot and avoid them

Written by Noeleene Yap | Oct 2, 2025 2:46:47 AM

The contents provided on this page are for informational purposes only and do not constitute financial advice. Consider your personal circumstances and objectives before making any financial decisions.

 

$147 million. 

That’s how much money has been lost to scams in Australia in 2025 according to Scamwatch (at time of writing, September 25th). Money taken from Aussies of all stripes, ages, and genders. 

If we look back at 2024, the total rises to just under $319 million. 

We live in an increasingly-interconnected world, a digital age that keeps finding new ways to digitise—looking at you, AI. And with that comes the scammers trying to pry your hard-earned money out of your hands. 

Why do we fall for scams?

You’re sitting there, probably the recipient of at least 4 separate scam alert training sessions and highly proficient with the latest tech, yet you’re still in danger of falling for the next scam to come your way. 

Why?

On a very basic level, scams work because they target what’s human about us and manipulate them to create the outcome they want. It’s psychological. And it’s very hard to defend against what’s natural. According to UNSW, there are 6 specific reasons we fall for scams

  • Financial desperation
  • Social engineering
  • Lack of awareness
  • Emotional triggers
  • Trust and authority
  • Lack of vigilance

These reasons often have some part to play in every successful scam out there. 

So let’s run through the 10 most common scams in Australia in 2025, and lay out how you can dodge them.

To paraphrase a Ben Stiller and Vince Vaughn classic “If you can dodge a wrench, you can dodge a phishing scam.” 

Further reading: If you’re looking for a bigger fix of cybersafety, we had a great chat with Beforepay’s Chief Technology Officer (CTO), Rajini, on how to stay safe online.

Phishing

What is phishing? The act of sending fake messages that appear to come from a legitimate source. 

Warning signs

  • Receiving fake emails, texts, or phone calls from ‘trusted’ organisations asking for sensitive information.
  • Time pressure, urgency, or demanding language. 
  • Grammar or spelling mistakes. 

How to avoid: 

  • Don’t click on links or attachments in suspicious messages. 
  • Don’t provide personal information or sensitive details to people who contact you asking for them. 
  • Don’t download apps, files, or attachments through links or QR codes. 

It’s time to put the info into practice. Cyber (Australian Govt) has a quiz where you can test your scam spotting skills! 

Fake bill scams

What is a fake bill scam? The act of sending a fake bill or invoice from an apparently-legitimate company in the hopes you’ll pay it. Can be effective if it’s a company you’ve paid before. 

Warning signs: 

  • Missing or incorrect details. 
  • Duplicate invoices. 
  • Higher-than-expected amounts. 

How to avoid: 

  • Don’t rush to pay because of a demand.
  • Compare the suspicious bill with a previous legitimate one. If no previous one is available, directly contact the company you are dealing with.
  • Independently verify the company and the details. 

The ACCC even reported that in 2023, $16.2 million was lost through fake invoices. 

Identity fraud

What is identity fraud? Also known as identity theft, this is the act of using someone else’s personal information without consent to obtain a benefit (e.g. money, access to sensitive data etc). 

Warning signs: 

Identity fraud is harder to spot before it happens but here are some signs that it may have occurred—

  • Missing ID documents (e.g. licence, passport). 
  • Unusual activity on your bank statement (e.g. purchases you didn’t make, companies you don’t buy from, more money than usual being taken out).
  • You receive notices about services or products you didn’t purchase. 

How to avoid: 

  • Don’t access sensitive information on public wifi or shared devices. 
  • Shred, or otherwise destroy, documents containing sensitive information. 
  • Use strong passwords and multi-factor authentication on everything. 

Did you know? Beforepay recently rolled out multi-factor authentication. Check out our help article for more information. 

Impersonation 

What is an impersonation scam ? A scammer pretends to be someone they’re not or part of an organisation they’re not, in order to extract something from you. 

Warning signs: 

  • A message from a business asking you to click on a link or input personal details to verify or update your account. 
  • A request for money from an apparently-trustworthy source, such as a bank. 
  • Links that look legitimate, but lead to sites designed to capture your login or bank credentials. 

How to avoid: 

  • Never share your passwords, usernames, or one-time codes with anyone. 
  • Don’t click on links in messages. Access the relevant webpage through a secure portal, app, or verified website (do not type out the false link word for word). 
  • Cut contact with anyone who threatens or pressures you to take an action. 
  • Don’t open or download attachments in unsolicited messages. 

And this is just the top level—scams are incredibly nuanced and complex. If you want to learn more, Macquarie Bank has laid out 5 common impersonation scams

Online shopping scams

What is an online shopping scam? The listing of in-demand, rare, branded, or interesting items for lower-than-normal prices. Online shopping scams can also be perpetrated by fake buyers, as well as sellers. 

Warning signs: 

  • Prices or offers appear way too good to be true. 
  • No buyer/seller details. 
  • Odd payment options. 
  • Being encouraged to send an item before payment is received. 

How to avoid: 

  • Check product and seller reviews, from real people. 
  • Do independent research on pricing. 
  • Always use secure payment methods, especially ones with fraud protections. 
  • Buy and sell on reputable platforms. 

Threats or extortion 

What is extortion? An extortion scam is the act of threatening a harmful action (e.g. arrest, deportation, physical harm, the release of compromising material) if you do not pay up. 

Warning signs: 

  • Claiming they possess damaging material. 
  • Implied or explicit references to reputation.
  • Being subjected to intense pressure. 
  • The promise of a ‘fix’ for a fee. 

How to avoid: 

  • Hang up or don’t reply when issued a threat. If necessary, contact the police or relevant authority. 
  • Don’t engage with the scammer. 
  • Independently verify any details given (e.g. bank, government agency, official organisation). 

Romance or dating scams

What is a romance scam? The creation of a fake persona (often online, but not always) to build up a feeling of trust, connection, or love, with the end goal of extracting a specific benefit (such as money). 

Warning signs: 

  • Things move too fast. 
  • Being asked to move conversations to another unsecured platform. 
  • Urgent requests for money. 
  • Declining to meet in person or on video. 
  • Requests for personal details. 

How to avoid: 

  • Don’t send money to someone you haven’t met. 
  • If you have a bad feeling about someone or something, trust it. 
  • Be aware of the use of AI-generated videos and deepfakes that can put a false face on a scammer. 

For more information, check out this SBS Australia article (and handy podcast) on how to keep safe from romance scams

Remote access scams

What is a remote access scam? Being contacted by someone pretending to be from a familiar company (bank, telecom, software company etc), who is claiming they need remote access to your device. 

Warning signs: 

  • Being unexpectedly told that your device has a virus or other problem. 
  • Pressure to take an action or refusing to answer valid questions.
  • Being pushed to give access or to buy software that can ‘fix’ it. 

How to avoid: 

  • Don’t give an unsolicited contact access to your device. 
  • Don’t give out card details or personal information over the phone, via text, or email.
  • Use reliable anti-virus software to keep your device protected. 

Job scams

What is a job scam? Providing fake job listings that offer high reward for little effort.

These are so common even the Australian Federal Police has written about it. 

Warning signs: 

  • Entirely online without face-to-face interaction. 
  • No interviews and unnaturally quick hiring process. 
  • Job description lacks details or is vague. 
  • Being asked to pay during recruitment. 

How to avoid: 

  • Independently research the company or recruitment service offering the role. 
  • Don’t share banking or personal details with people you’ve just met. 
  • Be on the lookout for inconsistencies or errors within the job ad. 

Investment scams 

What is an investment scam? Pretending to offer an investment that promises big returns, often fast, for little or no risk. 

Warning signs: 

  • Using authority figures or famous people as investor success stories.
  • Investment advisors without independently-verifiable qualifications.
  • Guaranteed returns.
  • Early bird offers or FOMO pressure,

How to avoid: 

  • Check to see if they have a valid Australian Financial Services licence.
  • Check the investment details against the stock exchange. 
  • Don’t respond to anyone pressuring you to invest now or without due diligence. 

For more information on investment scams, check out Moneysmart

A scam dunk

There we have it; 10 common scams and how to identify them. Before we close out this article, we’re going to leave you with one more note—

It’s a myth that all scams are poorly designed and easily recognisable. 

There are many jokes about foreign royalty that can (often subconsciously) trick you into expecting one version of a scam, only to be hit by the many, many highly-sophisticated ones out there. 

Stay vigilant. Trust your instincts. And report a scam if you suspect a scam. It helps keep everyone safer. 

Further reading: Brush up on your cyber knowledge with this list of cybersecurity terms


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