The interest rate easing cycle has led to a heightened risk of scams, according to ANZ.
Australia and New Zealand Banking Group (ANZ) has urged customers to be wary of a rise in scam activity following the recent decision by the Reserve Bank of Australia (RBA) to reduce the cash rate by 25 bps.
The bank said it was the sort of event that cyber criminals often look to exploit by posing as financial institutions or advisers in an attempt to steal money.
In particular, ANZ flagged common scam tactics used following major financial announcements, including fake loan or mortgage offers, phishing links, and fake financial advice.
The major also said that scammers may advertise higher interest rates on fraudulent websites, preying on individuals looking to maximise their savings.
Scammers also typically publish fake news articles and use deepfakes to try and make scams seem legitimate, ANZ said.
At a time when customers may be considering refinancing their loans or seeking better rates, ANZ head of customer protection, Shaq Johnson, said it was important that customers remain cautious.
“We urge customers to be hyper-vigilant around major financial announcements like these. Cybercriminals are using technology in increasingly sophisticated ways and always looking for new and convincing ways in,” he said.
“A change in the RBA cash rate could give them the opportunity to exploit confusion or create a false sense of urgency around locking in strong rates and transferring large sums of money.
“Scammers will often advertise higher savings rates on fake websites impersonating a bank, preying on individuals looking for a stronger rate.
“It’s important to cross-check all of the contact you receive directly with your bank.”
In its May/June cash rate decision, the central bank dropped rates to 3.85 per cent, taking rates below 4 per cent for the first time since May 2023.
Following the announcement, a raft of lenders confirmed they would reduce rates for all variable rate borrowers.
The rate drop is likely to give refinancing rates a boost, with the potential for lenders to capitalise on improving consumer sentiment by offering more competitive mortgage rates.
Source: theadviser.com.au