How to spot four scams that could cost you thousands

Scams are becoming more sophisticated, using everything from fake invoices to fraudulent investments to target individuals, families and businesses.

Australians are continuously facing attacks. Recognising the red flags is not optional, it's essential.

According to Scamwatch, Australians lost a staggering $2.03 billion to scams in 2024.

At NAB, we see the impact of scams every day. On average, we stop and recover close to $2 million in scam payments each month..

While it can be difficult to prevent scams, knowing the common threats and how to spot them, can help to reduce your risk and understanding what steps to take if impacted by a scam can help ease the stress and uncertainty.

Whether you're managing personal finances, running a business or safeguarding family wealth, understanding how scams work is your first line of defence.

Investment scams: Too good to be true

Investment scams are among the most convincing. Even financially savvy people can be caught off guard by offers that look legitimate but promise extraordinary returns with little or no risk.

These scams often involve shares, cryptocurrencies, foreign currency trading, term deposits or real estate schemes.

They may use fake investment apps and request remote access to devices under the guise of setting up trading platforms or impersonating banks, insurers and financial advisers to appear credible.

That's why at NAB Private Wealth we emphasise verification.

If you are not dealing with a trusted banker, investment specialist or adviser, always check an adviser's credentials through the Australian Securities and Investment Commission (ASIC) before investing and making any commitments.

Confirm they hold an Australian Financial Services Licence (AFSL) or Australian Credit Licence (ACL) and make sure any prospectus is registered.

You should also check the official website of the company to confirm any offers.

Phishing: The digital deception

Phishing messages are one of the most common and deceptive threats.

These messages impersonate trusted entities including banks, government departments and even family members in an attempt to convince people to reveal personal information.

They create a sense of urgency to encourage action, like claiming you'll face a fine or miss a delivery - so you click a link without checking the details.

I have both seen and heard stories of people with varying levels of financial knowledge and experience impacted by phishing.

The red flags are usually the same: generic greetings, unusual web addresses and poor grammar.

Some criminals even use technology to blend their messages with legitimate communications, which makes them harder to detect.

That is why I encourage clients to be diligent with their digital practices.

Never provide personal or banking information through a link and always verify the sender's identity directly with the organisation.

Using Multi-Factor Authentication (MFA) adds a vital layer of protection. Even if a password is compromised, the account stays secure, as long as you keep your MFA codes safe.

Remote access scams: Inviting criminals in

Remote access scams are particularly dangerous because they give criminals control over your devices.

Once they gain control they can steal data, transfer funds, monitor emails and even lock files for ransom.

In NAB's efforts to combat scams, we often see criminals start with an unexpected call, text, or pop-up message claiming to be from your bank, telco or even the police.

Individuals are asked to download software to "fix" a problem or transfer money to a "safe" account. Your bank will never ask you to do either.

If contacted unexpectedly, hang up and verify the caller's identity using official contact details. Never share your internet banking login or security codes.

If you suspect a scam, act quickly and call your bank straight away if you've shared your information or sent money.

Invoice scams: When business gets hijacked

Invoice scams often begin with a compromised email account, allowing criminals to impersonate legitimate businesses and send fake invoices or altered payment details.

This tactic, known as invoice scams, was the most reported scam type among small businesses in 2024, according to Scamwatch.

At NAB, we've seen how damaging this can be for business owners, households and those managing complex financial structures.

Red flags include unexpected requests to click links, scan QR codes, or download attachments.

A sudden change in bank details or an invoice that looks slightly unusual should always prompt a second check.

The best safeguard is to pause and verify. Confirm payment instructions using publicly listed contact details, not those in a suspicious email.

Tools such as PayID and BPay Biller Codes add confidence by displaying the legal name of the payee before money leaves your account.

Stop, check, protect: Your scam defence strategy

At NAB we encourage everyone to remember a simple but powerful approach: stop, check and protect.

• Stop before you act: If something feels rushed or too good to be true, pause
• Check before you share: Verify identities and payment details through official sources
• Protect if you suspect: Report suspicious activity immediately to prevent further threats and minimise impacts

Scams rely on confusion and pressure to rush decisions. Taking your time to verify details is one of the strongest defences.

Personal information is one of your most valuable assets, and in the wrong hands, it can be used to carry out fraud such as taking out loans or opening credit cards in your name.

At NAB Private Wealth, scam prevention is an ongoing conversation with our clients, but the message applies to all Australians.

NAB is hosting The Big Scam Education Conversation on Tuesday, 26 August during Scams Awareness Week.

Everyone is welcome to join and learn how to protect themselves, their families, and their businesses.

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