September 17, 2021
Business

Investment scams in Australia: What is the true cost?

In 2020, scams accounted for $851 million in combined financial losses, with investment scams accounting for the highest associated losses out of all the scam types.

Investment scams reported to the ACCC-run Scamwatch have cost Australians over $70 million in the first half of 2021, and projected losses are set to reach $140 million by the end of the year.

However, this does not provide a full picture of the total financial impact. In 2020, while investment scams reported to Scamwatch accounted for $65.8 million in losses, $328 million in losses to investment scams were reported to other government agencies and the major banks.

As greater investment scam losses were reported to Scamwatch in the first half of 2021 than in all of 2020, this indicates that the total cost of investment scams reported to other government agencies and banks may have also increased significantly.

The ACCC…

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