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Is that a legitimate job offer? How to spot and stop an employment scam Amid ongoing cost-of-living pressures and workforce uncertainty, including redundancies across a range of industries, employment scams are becoming an increasingly common threat for Australians seeking work or additional income. "As part of the job search, applicants typically share a lot of personal information in their resumes, like personal details, contact details, and work history. Unfortunately, this makes employment scams particularly lucrative for fraudsters,” explained Martin Latimer, COBA’s Head of Financial Crime and Cyber Resilience.  "Many employment scams are designed to look legitimate. They may contain convincing job advertisements, professional communications and sometimes even fake interviews. It only takes a few extra steps to verify an employer and independently check a job opportunity, but it can make all the difference in helping job seekers avoid becoming victims." In this article, COBA’s Financial Crimes and Cyber Resilience team shares their top tips on how to spot and stop an employment scam.   What are employment scams? Employment scams, also called job scams, come in many forms and can catch out even the most cautious job seekers. In some cases, scammers impersonate employers or recruiters, asking for upfront fees purportedly going towards the job search, background checks, training materials, and other such expenses. However, once the payment is made, the “job opportunity” often disappears along with the scammer. Scammers also post fake ads on classified ad websites, social media, or job boards, with these fake job ads mentioning attractive salaries or benefits like flexible hours or work-from-home arrangements. But these jobs don’t exist or may be linked to illegal activities.  “For example, applicants may be recruited as ‘financial managers’ and are asked to receive funds into their bank account before transferring the money elsewhere. These roles may list having an Australian bank account as a job requirement and promise a commission from the transfers as ‘wages’. In such scenarios, applicants may not realise they have been recruited as a money mule and are breaking the law,” Latimer explained.  Other scams are designed to steal sensitive information, using fake recruitment emails, websites or application forms that appear legitimate. The information collected may then be used for phishing attacks, identity theft or other fraudulent activity.   What are the warning signs of an employment scam? While looking for a job can already a stressful process, it’s important to remain alert and look out for the warning signs of an employment scam.  Some of the red flags include: Job postings, emails, or correspondent with poor grammar or spelling errors Job ads that are vague or generic, with promises of quick and easy money or unrealistic salaries  Prospective employers or recruiters who ask for upfront fees or costs as a condition of employment Unsolicited job offers from unknown sources, usually sent via email, phone, or social media A job simply involves receiving money into your account and moving it out “When in doubt, take a second to research the prospective employer by checking their website, verifying their contact information, and looking at online reviews. Be cautious of any employers who don’t have an online presence, only communicate through online forms, or have negative reviews,” Latimer added.  Remember, if a job sounds too good to be true, it probably is. Always double-check job listings across various job boards or official recruitment channels, and don’t make any upfront payments purportedly linked to a job.  Importantly, don’t share personal or financial information like your identification documents or bank details, with unverified or unknown employers.   What to do if you spot an employment scam If you suspect a job or employment scam, report the scam to the National Anti-Scam Centre – Scamwatch . If you lost any money, or shared any personal information with a suspected scammer, report the transaction to your financial institution immediately and make a report through ReportCyber . “It’s important to remember that even if you managed to avoid losing money to a scam, it’s crucial to report the scam. These reports play a small but important part in stopping these criminals and helping protect others,” Latimer said. To help yourself and others stay scam-safe, remember the simple, three-step “Stop. Check. Protect” method – take a moment before giving your money or personal information to anyone, make sure the person or organisation you’re dealing with is real, and act quickly if something feels wrong.

Shopping around for a good deal? Watch out for scam comparison websites As household budgets feel the crunch of ongoing cost-of-living pressures, many people are likely to shop around for better deals on utilities, subscriptions, and even their bank accounts.  Unfortunately, using fake websites targeted at obtaining consumers’ personal and financial information, many scammers are likely to take advantage of the situation.  “Comparison websites can be a great way to compare the costs and features of various products and services and may lead to some significant cost savings. But it’s important to stay vigilant about the website you are using to compare these prices,” explained Martin Latimer, Head of Financial Crime and Cyber Resilience at the Customer Owned Banking Association (COBA). COBA’s financial crimes team have shared their practical tips to help consumers stay protected.   Spotting the warning signs  While scam websites can appear convincing at first glance, there are some tell-tale signs that something isn't quite adding up.  Check whether the website clearly identifies the business operating it, provides contact details, and explains how it makes money. Legitimate services provide information to be transparent on how products are ranked and whether they receive commissions from providers. Other warning signs of a scam site include typos and grammatical errors and bad website design.  You can also verify if the comparison site is using a ‘.com’ domain, rather than a registered Australian ‘.com.au’ domain. A little extra research on the website can go a long way, Latimer points out. “If you're unfamiliar or unsure about a comparison website, look for independent reviews. You can also check how long the website has been operating and whether there are clear ways to contact the business,” he said.  Moreover, consumers should be cautious about the information they are asked to provide to use the website. Scammers are likely to request sensitive information such as online banking credentials, passwords, one-time verification codes, or copies of identity documents to provide comparison results. “Scammers may also adopt phishing tactics to steal your information by supposedly leading you to ‘better deals’ with links on their websites. If a product or service piques your interest and you would like to learn more or sign up, it’s better to type the web address manually or using a trusted search engine. Many consumers may find the deal or offer they spotted on a scam website doesn’t actually exist,” Latimer added.    Suspect a scam? Here’s what you need to do To help yourself and others stay scam-safe, keep in mind the simple, three-step “Stop. Check. Protect” method – take a moment before giving your money or personal information to anyone, make sure the person or organisation you’re dealing with is real, and act quickly if something feels wrong. If you think you’ve been scammed, reach out to your financial institution or card provider immediately, as they can stop further transactions and explore options to recover funds. If you suspect a scam, report the suspicious sellers or websites to https://www.scamwatch.gov.au/report-a-scam and Cyber.gov.au.   Article by COBA

Too good to be true? Stay alert for ‘ghost stores’ this EOFY sales season As the end of the financial year approaches, many shoppers will be eagerly looking out for EOFY sales. However, as ‘ghost’ or ‘phantom’ stores become more common online, the Customer Owned Banking Association (COBA) is urging shoppers to remain vigilant. According to ACCC’s Scamwatch, more than 12,000 Australians reported losing money to shopping scams in 2025, with total losses reaching $10.8 million. “These websites are designed to trick even the savviest shopper, and scammers are experts in making fake websites look convincingly like legitimate retailers,” explained Martin Latimer, COBA Head of Financial Crimes and Cyber Resilience. To help shoppers stay safe this sales season, COBA’s financial crimes team share their expert tips on how to spot, and avoid, such scams.   How do ‘ghost’ or ‘phantom’ stores work? Typically, ghost stores can only be found online and do not have a physical presence. Consumers may be targeted through social media ads for these stores. Ghost stores don’t often have registered Australian Business Numbers (ABN) and the websites may not have a privacy policy, terms and conditions, or contact details to contact the business. Many ghost store websites may have AI-generated images of fake founders or customers, or stolen product images. They may resemble legitimate brands or websites in their name or logo. These fake shopping websites tend to use tactics like creating a sense of urgency to get customers to make immediate decisions and payments. This could look like fake countdown timers on products, or limited stock warnings (such as ‘only 2 items left!’) to pressure shoppers into making quick decisions. "Ghost stores often offer expensive goods at dramatically discounted prices up to 90% off. If it's too good to be true, it normally is,” Latimer warned. Beyond the financial damage of such scams - where these fake stores may provide inferior quality goods or no goods at all once shoppers place an order - they also pose serious privacy and security risks. Ghost stores harvest personal information, login credentials, and payment details through phishing-style tactics that seem like legitimate online shopping experiences. Latimer explained: “The prices on these websites can be quite tempting, and many shoppers may be keen to jump on what looks like a bargain. But ghost stores are designed to mimic legitimate retailers so convincingly that shoppers don’t realise they’re handing over more than their money, but sensitive personal and financial data as well.”   How to spot a shopping scam When it comes to shopping scams, it’s important to watch for poor website design and spelling or grammatical errors. Another indicator the store may not be what it seems is a lack of customer feedback or reviews for the seller or product. “When in doubt, it’s useful to double-check the website URL. Often, ghost stores may be using a ‘.com’ and not ‘.com.au’ website domain,” Latimer said. If you are shopping on an Australian website, you can use the Australian Domain Authority’s website register to see which company or trademark registered it. Latimer added: “Additionally, scam websites may encourage you to use untraceable payment methods like cryptocurrency or wire transfers. It’s best to stick to trusted and secure payment methods, which often have built-in buyer protection and fraud prevention features to help safeguard your purchases.”   What to do if you suspect a scam To help yourself and others stay scam-safe, keep in mind the simple, three-step “Stop. Check. Protect” (Scamwatch) method - take a moment before giving your money or personal information to anyone, make sure the person or organisation you’re dealing with is real, and act quickly if something feels wrong. If you suspect a scam, report the suspicious sellers or websites to National Anti-Scam Centre (NASC) – Scamwatch and Cyber.gov.au. If you think you’ve been scammed, it’s important to contact your financial institution or card provider immediately. They can help stop further transactions and explore options to recover funds.