More than 143,000 scams were reported in the first half of the 2024 calendar year, according to Scamwatch, contributing to losses of up to $134 million. ANZ’s fraud and scams portfolio lead Melissa Hendrickson reveals how brokers can help clients be vigilant to scams

According to the Mortgage & Finance Association of Australia, 74.1 per cent of all new home loans in the country written between January and March this year were written by brokers. Being a great mortgage broker is about rewarding the faith clients have in your judgement; helping them navigate the threat of scams is central to rewarding their trust.

Financial institutions and banks, including ANZ, value the stringent standards good mortgage brokers uphold; being client- and customer-facing roles, brokers are often the first line of defence against scammers.

Australians reported a record 601,000 scams last year, up from the 507,000 reported in 2022, with losses totalling $2.7 billion, according to the Australian Competition and Consumer Commission’s (ACCC) Scamwatch.

Data from the ACCC’s Scamwatch showed in 2023, investment scams were the largest scam type by value with a loss of $29.9 million

Data from the ACCC’s Scamwatch showed in 2023, investment scams were the largest scam type by value with a loss of $29.9 million while phishing was the largest by volume with over 106,600 reports.

ANZ is committed to working with our partners in law enforcement, regulators, and the mortgage industry to disrupt these criminal networks and protect our customers. We also invest in cutting-edge technology and capabilities to monitor and respond to suspicious activity on our systems and platforms.

Brokers have a trusted relationship with their clients and therefore can play a vital role in educating them about the common scams to watch out for and the steps they can take to stay safe. Protect yourself and your customer by being alert to common scams, including:

  • Business email compromise: These involve online criminals posing as a trusted supplier or vendor and collecting payment for goods or services received. Often a business will receive an invoice from a supplier whose email address has been compromised, advising their bank details have changed and requesting future payments be paid into a different, fraudulent bank account. In other variations, online criminals will send an email to a company’s accounts team via a compromised email account, pretending to be a senior executive, requesting the urgent transfer of funds. Criminals can also request recurring salary or rental payments be directed to a new account. Your prospective home buyers should remain vigilant to these types of scams given there is often a need to transfer large amounts as part of the home buying process.

  • Investment scams: Scammers also know home buyers have been saving their capital, so they can target them with investment scams. The scammers will often call or email you claiming to be a stockbroker or portfolio manager and offer low-risk investments with high returns. These scams can be very appealing to home buyers, who have been saving up for their deposit or mortgage repayments.

  • Phishing scams: A phishing scam is when you receive a hoax email, text, or social media post that looks like it’s come from a legitimate company like your bank, mobile phone, or internet service provider. The phishing scammer wants to trick you into giving them your personal information such as your password, bank account, or credit card number.

  • Impersonation scams: This involves a cyber criminal pretending to be someone else, such as a real estate agent, a bank employee, or even a loved one and asks for money or personal details. With advances in technology, these scams have become very convincing and realistic. They often present in the form of fake emails, phone calls, texts, or social media messages that appear to come from a genuine person or organisation.

  • Romance scams: An unexpected message or request (through channels such as email, social media platforms, messaging apps, etc) from someone you don’t know might be the start of a romance scam. The scammer uses a false identity to capture the victims’ interest and builds an emotional connection over a period of time. They are really trying to get victims to transfer them the money they have saved.

One of the common methods scammers use to access a customer’s account is remote access. This is when a scammer convinces someone to give them remote control of their personal device. Typically, the scammer will phone you and pretend to be a staff member from a large telecommunications or technology organisation.

They may claim your internet connection has been hacked or your security has been compromised and your assistance is required with an investigation. Normally, the real organisations will not make unsolicited calls or ask you to install software in order to access your computer device remotely. As customers consider their home loan options, it’s important we continue to focus on the security of our systems, data, and customers.

ANZ has been investing in enhanced technologies and capabilities, so that our 24/7 Security Operations Centre is equipped to analyse millions of transactions and data events daily for unusual or suspicious activity.

This includes systems that identify anomalies in usual payment processes and account opening, identification of compromised credentials through routine and regular dark web scanning, and constant removal of approximately phishing sites.

As a broker, you can help educate customers by having a conversation with them about the purpose of their funding and following the processes set out by your aggregator and chosen lender. You can also direct them to ANZ’s Security Centre, where they can find more information on how to spot and avoid scams and how to protect themselves and their business.

And if you or your client suspect that you have been targeted by a scam, you should contact your bank directly and report it as soon as possible.

By working together, we can make it harder for scammers to succeed and safer for home buyers and brokers to achieve their goals.

Melissa Hendrickson
Fraud and scams portfolio lead, ANZ