ACCC Warns of Rising Remote Access Scams as Losses Surge

ACCC Warns of Rising Remote Access Scams as Losses Surge

The Australian Competition and Consumer Commission (ACCC) is urging Australians to be cautious following a significant rise in reported losses to remote access scams. These scams involve criminals gaining access to victims' personal devices and accounts, often leading to substantial financial losses.

Rising Financial Losses from Remote Access Scams

In 2023, Australians reported losing $15.5 million to remote access scams. Alarmingly, there was a 52 per cent increase in overall losses in the first quarter of 2024. The ACCC’s National Anti-Scam Centre revealed that victims of these scams lost an average of $17,943 in the first quarter of 2024, a 57 per cent increase from average losses in 2023. Notably, Australians over the age of 65 have been losing the most money to these scams.

How Remote Access Scams Work

Remote access scams typically begin with a phone call from a scammer impersonating a well-known company. The scammer convinces the victim that there is an issue with an online account, their phone, or their computer. They then instruct the victim to download software or a mobile app, allowing the scammer to gain access to the victim’s device. Once access is granted, the scammer seeks to access banking or other sensitive accounts under the guise of resolving an issue. They may ask for banking passwords and one-time security codes, which can lead to accounts being drained later on.

Victims' Experiences

One victim, surveyed by consumer advocacy group Choice, recounted how scammers, claiming to represent the National Broadband Network (NBN), gained access to their PC and transferred money from their Commonwealth Bank Netbank account to another account. Despite promptly contacting Commonwealth Bank security, the victim faced a lengthy and challenging process to recover only half of the lost funds.

ACCC's Recommendations

ACCC Deputy Chair Catriona Lowe expressed concern about the professionalism of scammers and their ability to drain entire bank accounts. She advised consumers never to download software or apps at the request of someone over the phone and to hang up if such a request is made. Additionally, individuals should never share banking information, passwords, or two-factor authentication codes with third parties.

The National Anti-Scam Centre has alerted companies that produce remote desktop software and those impersonated by scammers to this fraudulent activity.

The Role of Banks and Government Measures

Choice’s survey indicated that scam victims often feel isolated and burdened by their experiences. Choice Director of Campaigns, Rosie Thomas, emphasised the critical role banks play in recovering money and providing support to victims. However, the survey showed that only half of respondents received help from their banks in recovering lost funds, and a third reported a lack of immediate action.

In response to the increasing prevalence of scams, the 2024 federal budget, announced earlier in May, includes additional funding to combat scams. This funding will support the enforcement of mandatory codes, a public awareness campaign, and the development of further legislation.

Conclusion

The rise in remote access scams highlights the need for increased vigilance and proactive measures to protect against cybercriminals. Australians are urged to remain cautious and to follow the ACCC’s recommendations to safeguard their personal and financial information. The government’s commitment to enhancing protections and raising awareness is a positive step towards mitigating the impact of these scams on the community.