Don't be caught out by scammers
BUILDING wealth isn't just about making money. It also involves plugging gaps so you're not losing money.
One way to do this in 2018 is to avoid becoming a victim of scams.
In 2016 alone, Australians collectively lost $300 million to scams, with an average loss of $7200 per victim. That's a big hit for most of us, yet a few basic steps can help keep your money safe.
Email, social media and mobile apps are the preferred tools of trade for scammers these days, and, according to the Stay Smart Online website, 2018 is set to bring an increase in cyber threats. While Australians aged 45-54 are most likely to become victims of scams, it pays for all of us to know what to look for.
Some of the most common scams involve "phishing” emails that appear to be from legitimate businesses or government departments requesting your personal details.
False billing is another con that scammers use. This is where you receive an authentic looking (but fake) bill emailed from someone pretending to be your phone or energy company.
A simple way to pick dodgy emails is by hovering your mouse over the email address. If this shows an address different from the one displayed in the message, chances are you're looking at a scam.
The things is, scammers aren't always after your money. In some cases they're trying to steal your personal information, which can be far more lucrative than a quick cash grab.
This makes it important to protect your personal details online in much the same way as you would protect your credit card or bank account.
Make sure your accounts are protected with strong passwords, and where possible, two-factor authentication like a password and a PIN. And don't use the same passwords across multiple sites.
If you use social networking sites like Facebook, be careful who you connect with and understand how the privacy settings work for your account. It also pays to limit the information you share on social media. Personal details can be collected by people trying to assume your identity.
Make a habit of regularly checking the Scamwatch and the Stay Smart Online websites. Both have details of the latest scams doing the rounds, with tips on how to avoid falling for them.
Paul Clitheroe is a founding director of financial planning firm ipac, chairman of the Australian Government Financial Literacy Board and chief commentator for Money Magazine.