These four scams could cost you thousands. Here’s how to spot them

Two years ago, I wrote that financial scams have skyrocketed in the past decade. And while our broad understanding and awareness of scams has improved since then, it’s still an issue that costs us far too much.

One of the greatest challenges with financial scams is that they’re not only becoming increasingly sophisticated, they’re also fast moving, meaning keeping up with risks and tactics can be difficult.

What we do know for sure is that in Australia, more than $2.1 billion was lost to financial scams between 2020 and 2025, with almost 1.5 million people reporting these crimes. Sadly, the true figure is likely even higher.

In 2025 alone, there was a 5 per cent increase in the amount of money lost to financial scams, with Scamwatch finding a total of $334.9 million was stolen from Australians. Among the scams which saw people lose the most were investment scams, phishing scams and romance scams, while shopping scams were among the most common.

So in the interest of keeping up to date, here’s some useful information to arm yourself against four of the most common and expensive scams we’re up against today.

Investment scams

Unfortunately but perhaps unsurprisingly, investment scams remain the most common, with $172.2 million in losses reported in 2025 alone in Australia. But if you think that’s bad, that figure blows out to a jaw dropping $1.2 billion over the five years between 2020 and 2025.

Scams often find us when we are busy and therefore aren’t paying close attention.

Victorians and NSW residents have been the worst hit, making up almost 50 per cent of all claims (24,622 from a total of 51,149) over the five-year period, and of that, men make up more than two-thirds of victims (64 per cent). Between men and women, though, the median amount lost in investment scams are fairly similar, with men losing $7000 and women losing $6500.

There are a couple of ways investment scams tend to take place. This can be through impersonating genuine finance and investment companies or by creating a fake opportunity for people to invest into.

The latter relies on convincing marketing and tech that makes you believe it’s all above board, and promise “investors” high returns or big payouts, and often demands you act quickly to avoid missing out.

Investment scams also cover sports and betting, which Australians have lost more than $7.5 million to. Here, scammers make gambling look like an investment, and considering we are among the highest number of gamblers in the world, this is a kind of scam we’re not only particularly at risk of falling for, but being attracted to.

Between living in a culture of instant gratification and the cost of living crisis dragging on for years now, it’s incredibly understandable that investment scams appeal to people. But here’s where one of the oldest adages rings true: if it sounds (or looks) too good to be true, it probably is.

Phishing scams

While we’re all likely more familiar with phishing scams than any other kind and have got a lot better at spotting them, they still remain a huge problem.

In 2021, for example, there were 71,310 reports of phishing scams in Australia, and more than $4.3 million lost to them. In 2025, the number of reported scams had dropped to 65,361, but the amount lost was $31.1 million. So while fewer people are falling for the sophisticated scams, the average being lost has more than doubled.

Phishing scams occur when scammers impersonate financial institutions or other companies and organisations in an attempt to gain your personal information. Most commonly, this is done via text message, phone calls or emails.

They may contact you with a warning about things like suspicious account activity, an unpaid bill or a parcel that needs to be collected and will ask you to verify your personal information.

Because their communications are now often so sophisticated, it’s easy to believe them and comply, but the number one rule when contacted in this way is to ask for their name and a phone number to contact them back on, and then independently contact the company using a listed company phone number or chat portal through the official company website they claim to be representing to confirm if they were, in fact, trying to reach you.

Romance scams

In Australia, romance scams remain one of the most common and damaging crimes. Throughout 2025 alone, more than $28.6 million in losses was reported to Scamwatch, marking an increase of 21.7 per cent lost compared to 2024.

In the five years between 2020 and 2025, Australians have lost more than $222 million to romance and dating scams. Though they are most likely to occur online via social media or online dating platforms, they’re also happening via email and text messaging as well.

And while men are more likely to be the victims of romance scams than women (52 per cent of men compared with 43 per cent of women), women were more likely to lose more (a median of $7449 for women compared to just $847 for men).

Of course, there is no harmless or victimless crime, but in particular one of the cruelest aspects of romance and dating scams when compared with other forms of scamming is that they specifically target and prey on people who are looking for something that everybody wants – human connection and companionship.

It’s not a coincidence that the most commonly targeted group are Australians aged 65 and over, one of the most common cohorts of people experiencing loneliness.

Shopping scams

Similar to investment scams, it’s understandable how shopping scams are becoming increasingly common as people shop online and look for bargains. In 2025, losses of $27 million were reported, but again, the true cost is likely much higher.

What I think makes this particular kind of scam so easy to fall for, and therefore so dangerous, is that they often find us when we are busy and therefore aren’t paying close attention.

Let’s say you need to find a last-minute birthday present or are looking for a sold-out Christmas gift for your kids. Enter a seller on eBay, Amazon or Facebook Marketplace that has exactly what you want at a better price than anywhere else.

It can also be more sophisticated than that, with websites or social media pages set up. But the one common denominator is always the same – the prices are cheaper than normal, and usually too good to be true.

That’s why before you enter your credit card details and hit the purchase button it’s essential to take a beat and do your due diligence. Take a closer look at the formatting of the site, the wording of their testimonials (do they read as though they’ve been written by AI or are there typos?), double check how they’re asking you to pay (i.e. is it via direct bank transfer or is some other uncommon way?) and make sure you can clearly see the seller’s details. Again, if it feels off, step away.

Victoria Devine is an award-winning retired financial adviser, a bestselling author and host of Australia’s No.1 finance podcast, She’s on the Money. She is also founder and director of Zella Money.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions.

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