Financial Crime and Fraud on the Rise in Australia: Why Digital Literacy Has Become a Serious Need Today

Umesh Dhakal

KNA-Canberra

This article has been prepared to raise community awareness about the growing threat of financial crime and the urgent need for digital literacy in Australia.

Australia’s rapidly expanding digital economy has brought unprecedented convenience to individuals and businesses. However, this digital transformation has also resulted in a significant increase in financial crime and fraud, posing serious risks to economic stability, personal security, and national safety.

According to government estimates, the total cost of crime in Australia during 2023–24 exceeded $82 billion, with financial crime contributing more than $13.2 billion in losses. Online scams, cyber-enabled fraud, identity theft, and money laundering are now among the fastest-growing criminal activities in the country.

To better understand this growing threat and the role of digital literacy in prevention, we spoke with Ms Jenny Amatya, Associate Coach in Financial Crime Detection Department at the Commonwealth Bank of Australia, Former Nepal Tourism Ambassador (2016), and Miss Tourism 2016 (1st Runner-Up).

Q: Why is financial crime increasing so rapidly in Australia?

Jenny Amatya:
The primary reason for the rise in financial crime is the widespread adoption of digital technology. Online banking, mobile payment systems, cryptocurrencies, and social media platforms have created new opportunities for criminals. While these technologies offer convenience, they also expose individuals to risks such as phishing, identity theft, and online scams.

Many people still lack adequate awareness of how fraud operates. This makes them particularly vulnerable, especially older Australians and newly arrived migrants. Additionally, economic pressure and financial stress can lead individuals to make decisions without sufficient verification, increasing the likelihood of being scammed.

Q: What types of financial crimes are currently most prevalent?

Jenny Amatya:
The most common forms of financial crime include online scams—particularly romance and investment scams—phishing through emails and fraudulent SMS messages, unauthorized access to bank accounts, credit card fraud, and cryptocurrency-related scams.

These crimes are increasingly sophisticated and often involve impersonation of trusted organisations such as banks, the Australian Taxation Office, or government departments. New technologies, including artificial intelligence, are also being misused to create convincing scam calls and messages.

Q: Which groups are most affected by these crimes?

Jenny Amatya:
The most affected groups are senior citizens, immigrant communities, and individuals with limited digital literacy. These groups are often targeted because they may be less familiar with digital systems or more trusting of official-looking communications.

The impact extends beyond financial loss. Victims frequently experience emotional distress, anxiety, and a loss of confidence. Unfortunately, many incidents go unreported due to embarrassment or fear, which allows criminals to continue operating.

Q: What is digital literacy, and why is it so important today?

Jenny Amatya:
Digital literacy refers to the ability to use digital devices and online services safely, responsibly, and with awareness of potential risks. It is no longer optional—it is an essential life skill.

Being digitally literate enables individuals to recognise fraudulent activity, protect their personal information, avoid online risks, and make informed decisions. In today’s digital environment, digital literacy is one of the most effective tools for personal and financial security.

Q: What risks do people face if they lack digital literacy?

Jenny Amatya:
Individuals with low digital literacy are more likely to fall victim to fake websites, scam phone calls, and fraudulent emails. They may unknowingly share sensitive information such as passwords, one-time passwords, or banking details. Once this information is compromised, recovering financial losses can be extremely difficult.

Q: What steps are government agencies taking to combat financial crime?

Jenny Amatya:
Australian authorities, including AUSTRAC, the Australian Federal Police, ASIC, the ACCC, and the ATO, have significantly strengthened their response. This includes enhanced anti-money laundering and counter-terrorism financing laws, stricter Know Your Customer requirements, and increased monitoring of suspicious transactions.

Banks and financial institutions are also investing in advanced technologies such as AI-driven real-time transaction monitoring. Public awareness platforms like Scamwatch and Cyber.gov.au are playing a critical role in educating the community.

Q: Why are newly arrived migrant communities, including the Nepali community, particularly at risk?

Jenny Amatya:
New migrants often face language barriers, unfamiliar financial systems, and limited understanding of local laws and institutions. Scammers exploit this by sending fake emails, SMS messages, and phone calls related to employment, government benefits, prizes, or investment opportunities.

Without proper guidance, new arrivals may struggle to verify information, making them easy targets for financial fraud.

Q: What practical steps can individuals take to protect themselves?

Jenny Amatya:
People should never click on links from unknown sources or share personal or banking details over the phone, email, or SMS. Strong passwords and two-factor authentication should always be used.

If something feels suspicious, it is important to pause and seek advice from family members, trusted friends, or professionals. Any suspected fraud should be reported immediately to the bank and to Scamwatch. Acting quickly can significantly reduce financial losses.

Q: What is your key message to the Australian public?

Jenny Amatya:
Digital awareness is one of the strongest forms of protection today. Be cautious, verify information, and never rush into financial decisions based on pressure or fear. If in doubt, contact your bank or the relevant government agency directly.

No one should feel embarrassed about being targeted—scams can happen to anyone. Staying informed and digitally literate is essential for a safer financial future.

Conclusion

Financial crime in Australia is no longer an isolated issue. It is a complex and growing challenge that affects individuals, communities, and national security. While strong laws and advanced technology play an important role, experts agree that digital literacy and community awareness are the most effective long-term defences against financial crime.