Following World Elder Abuse Awareness Day on June 15, Bendigo Bank is issuing a warning regarding a surge in fake term deposit scams specifically targeting older Australians. Criminals are reportedly impersonating legitimate financial services, luring individuals, particularly those aged 65 and older, into fraudulent investment schemes that redirect substantial funds.
Jason Gordon, head of customer and threat protection at Bendigo Bank, highlighted the deceptive nature of these schemes. “Term deposits are regarded as conservative and secure investment options,” Gordon said. “Scammers know this and try to leverage the risk profile of these investments for their own ends with fake investment opportunities that redirect your funds to their own bank account.”
Gordon noted that investment scams account for the highest financial losses among all scam types in Australia. Retirees and those nearing retirement are frequently targeted, with Australians aged 65 and over reporting collective losses of $66.6 million to investment scams last year. This demographic, representing less than 20% of the population, suffered nearly one-third of all reported Scamwatch losses, totaling $99.6 million.
Scammers primarily gather contact information through “phony online advertisements promoting fake term deposits,” often found on social media or via online chat. Data breaches are another significant source of personal information, leading to direct and often prolonged contact from fraudsters.
Gordon outlined key warning signs of a scam: offers with “implausibly high interest rates,” unsolicited contact via phone, email, or SMS from unknown entities, a noticeable “lack of digital footprint” for the purported business, and discrepancies in receiving bank account details. Pressure tactics, such as “time sensitive offer to ‘invest now’” phrases, are also common.
To stay protected, Bendigo Bank advises against clicking links in unsolicited financial product messages. “Bendigo Bank has removed all links from SMS messages,” Gordon said, urging customers to treat any SMS containing a link as suspicious. He recommended treating all unsolicited investment offers with caution, conducting research, or seeking assistance from trusted friends or family. The bank also offers 30-minute, face-to-face educational sessions at local branches to help customers navigate digital banking safely.
Gordon highlighted the positive trend of older Australians reporting scams, with over 62,000 reports lodged to Scamwatch in 2024, emphasizing that “reporting scams is critical in helping telcos, internet service providers, banks and law enforcement put a stop to criminal activity.”
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