Fraudulent Banking And Credit Schemes

Listen to the episode

How To Identify And Avoid Fraudulent Credit Schemes

Fraudsters have clever ways to get your banking, credit card or personal details, and to trick you out of your money by offering you a loan.

Fraudulent Credit Card Schemes

Criminals do not need to steal your credit card to take your money—all they need are your card details. They can get these by: 

  • contacting you online or by phone, pretending to be your bank or another company, and tricking you into giving them your credit card details.
  • accessing your information from unsecured websites you’ve visited.
  • installing spyware on your computer so they can see the files you use, websites you visit and information you store. Spyware can be installed remotely.

Some fraudsters also steal new cards from letterboxes, skim the details off cards to use later, or apply for cards using stolen identities

If criminals know your PIN, they can get cash advances from an ATM using a ‘cloned’ credit card (where your details have been copied onto the magnetic strip of another card).

Warning Signs of a Fraudulent Credit Card Scheme

Your credit card details may have been taken by a criminal if: 

  • there are purchases on your credit card statement that you didn’t make.
  • you have accidentally given your credit card details (on the phone or internet) to someone you later realise you should not have trusted.
  • your credit card is lost or stolen.

Fake Loan Schemes

Fraudsters will contact you via phone or email to offer you a loan or credit. They will say they are a registered Australian company or Australian credit licensee. They may even have an Australian phone number or address to appear legitimate. If you agree to the loan, they will ask you for upfront payments before you get access to the money.

Signs of a Fake Loan Scheme

You might be at risk of falling victim to a fake loan scheme if you are:

  • offered a loan by being contacted out of the blue.
  • asked to make upfront payments before you get the loan, to pay for things like insurance, tax or initial repayments.
  • told to deposit your upfront payment into a bank account, a cryptocurrency wallet or by buying a gift card for the fraudster to redeem.
  • emailed from a generic email address (e.g. a gmail, hotmail or outlook account), or an email address that looks like it’s from a legitimate institution but is spelled incorrectly.
  • approved for a loan amount that is more than you require.
  • offered a very low interest rate.

Requests for account information (phishing)

Criminals may contact you via email, text message, social media, or phone call and pretend to be a bank, financial institution, phone company, or even a university or government agency. The aim of the scheme is to get you to give them your personal details, bank account numbers, credit card numbers and most importantly, your passwords. 

For example, an email they send may say there has been a security breach and ask you to download their security software, which is really a trojan virus. The virus could infect your computer and give someone else control of it. It could also track your keystrokes to get your usernames and passwords.

Signs of a phishing scheme

The email or text message you receive is definitely a phishing scheme if it:

  • claims to be from a bank or company that you do not have an account with.
  • contains a link that leads you to a website where you are asked to enter your bank account details.
  • says your details are required for security and maintenance upgrades or to ‘verify’ your account.
  • says you are due to receive a refund for a fee that you were mistakenly charged.

The email or text message could also be a phishing scheme if it:

  • does not address you by your full name.
  • has spelling errors or grammatical mistakes.
  • is a survey that offers you a reward or prize for filling it in.

How to Protect Yourself From Fraudulent Banking and Credit Schemes

Criminals can be ruthless, so it is important to be vigilant about protecting your information and know who you’re dealing with. Visit MoneySmart for more information.

What to Do if You Have Been Affected

If a criminal gets access to your credit card or bank account, call your bank immediately and ask them to freeze the account. See what to do if you have been affected by a fraudulent scheme for more detailed information on what to do next. 

Fraudsters are skilled at finding ways to get their hands on your money. Always be vigilant about protecting your personal information and be suspicious of anyone offering you easy money—there is almost always a catch. 

Source : ASIC MoneySmart

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page

Recent stories

Understanding the Sharemarket: A Beginner’s Guide

Listen to the episodeInvesting in the sharemarket can be a powerful way to grow your wealth over time. Whether you’re…

Read more

Franked Dividends vs Unfranked Dividends

Listen to the episodeWhen it comes to investing in the stock market, understanding the nuances of dividend payments is crucial.…

Read more

UGC Monthly Market Update | May 2024

Listen to the episodeJoin UGC’s Head of Research / Co-Portfolio Manager, Huw Davies, as he takes a deep dive into…

Read more

If aged care advice is confusing – get advice

Listen to the episodeMany people think they can’t afford to get aged care advice, but the reality is you probably…

Read more

Mastering the Tax Game: Boost Your Wealth & Trim Your Tax

Listen to the episodeAs the end of the financial year approaches, it’s the perfect time to refine your tax strategies…

Read more