In Australia, fraud is a growing concern, affecting both individuals and businesses across industries and age groups. According to the Australian Competition and Consumer Commission (ACCC), Australians lost over $3 billion to scams in 2022 alone—a staggering figure that reflects the increasing sophistication and prevalence of fraudulent activity. From investment scams and romance fraud to business email compromise and identity theft, no one is immune.

This alarming trend underscores the importance of staying vigilant, informed, and proactive in recognising suspicious behaviours and patterns. At Peakpi, we specialise in uncovering fraudulent activities and equipping clients with the knowledge and tools to protect their personal and professional interests. In this guide, we’ll explore the top 10 fraud red flags Australia residents should watch out for when engaging in personal or business transactions—and what to do if you encounter them.

Understanding Fraud Red Flags in Australia

Fraud can take many forms, and scammers often evolve their techniques to adapt to new technologies and changing regulations. Whether you're a homeowner leasing a property, a business owner hiring staff, or an individual investing your hard-earned money, recognising the common fraud red flags Australia presents is the first step to prevention.

Let’s dive into the top indicators that a transaction may be fraudulent, based on patterns seen throughout Australia.

1. Unsolicited Offers or Requests

One of the earliest fraud red flags Australia sees time and time again is the arrival of an unsolicited offer—an email, phone call, text, or social media message promising something of value out of the blue. Whether it's a free prize, an investment opportunity, or a limited-time business deal, these offers are often designed to lure unsuspecting victims quickly.

Scammers often impersonate trusted brands, organisations, or even government departments to appear legitimate. Always verify the sender’s identity before engaging, and never provide personal details in response to unsolicited outreach.

2. Requests for Unusual Payment Methods

Scam operations in Australia frequently rely on hard-to-trace payment methods. If someone asks you to pay using gift cards, wire transfers, cryptocurrency (such as Bitcoin), or prepaid debit cards, it’s time to raise the alarm.

Legitimate businesses and service providers typically offer traditional and secure payment methods, such as credit card, bank transfer, or PayPal. Avoid proceeding with any transaction that deviates from standard, verifiable channels. This is a recurring fraud red flag Australia consumers are warned about by the ACCC and Scamwatch.

3. Pressure to Act Quickly

Urgency is a favourite tactic among fraudsters. They’ll claim the deal or opportunity is only available for a limited time, or that you must act immediately to avoid missing out or incurring penalties. This psychological pressure is designed to override your critical thinking and force you into hasty decisions.

Whether you’re considering an investment, a property lease, or a business partnership, remember: genuine opportunities will never require you to make decisions on the spot. Pause, research, and consult with trusted advisors before taking action.

4. Inconsistencies in Communication

Scammers often reveal themselves through poor communication—misspelled emails, grammar mistakes, inconsistent details, or email addresses that don’t align with a company’s official domain. These are subtle, yet telling, fraud red flags Australia residents frequently encounter in phishing attempts and online scams.

Always double-check email domains, especially if the sender is claiming to represent a financial institution, government agency, or company you're familiar with. Even small discrepancies can indicate fraud.

5. Requests for Personal or Financial Information

No legitimate business or government body will ask for sensitive personal information—such as bank account details, passwords, or identification numbers—via email, phone, or SMS. If someone contacts you with such a request, it's likely a scam.

This is one of the most dangerous fraud red flags Australia faces today, particularly as identity theft cases continue to rise. Be especially cautious when providing your personal data online, and enable two-factor authentication on your accounts where possible.

6. Too Good to Be True Deals

If a deal sounds too good to be true, it probably is. Fraudsters often promise high returns on investments, quick profits, or luxury items at prices that seem impossibly low.

Investment fraud is particularly common in Australia, with scammers posing as financial advisors or representatives from legitimate firms. Always do your due diligence—check credentials, search for online reviews, and consult with licensed professionals before parting with your money.

7. Lack of Verifiable Information

A business that can’t provide a physical address, company registration number, or credible references should raise suspicions. Fraudsters tend to operate in the shadows—using vague or generic company names, fake websites, or untraceable social media accounts.

When engaging with a new business or contractor, make sure their identity and operations can be verified through ASIC (Australian Securities & Investments Commission), ABN Lookup, or Google Business reviews. This verification step helps reduce the risk of falling for fraud red flags Australia cases that involve fake entities.

8. Unusual Account Activity

For individuals, one of the earliest signs of fraud is unusual activity on your bank account, credit report, or utility services. Unexpected withdrawals, new lines of credit you didn’t apply for, or unknown charges should be reported immediately.

For businesses, internal fraud can manifest as unexplained transactions, altered invoices, or inconsistencies in financial records. Monitoring your accounts regularly and setting up alerts is a smart way to catch suspicious activity early—before it escalates.

9. Overpayment Scams

This scam typically involves a buyer “accidentally” overpaying for a product or service and requesting the excess amount be returned. However, the original payment often turns out to be fake or reversed, leaving the victim out of pocket.

This is a well-known fraud red flag Australia small business owners and freelancers often encounter on online marketplaces or when dealing with international clients. Always wait for funds to fully clear before issuing refunds.

10. Reluctance to Provide Written Agreements

Whether it’s a job offer, freelance project, or investment agreement, any legitimate deal should come with proper documentation. If someone is unwilling to provide a written contract or insists on keeping things “informal” or “off the record,” be extremely cautious.



Written agreements help define the expectations and responsibilities of each party and can serve as legal evidence in case of a dispute. A refusal to sign a contract or put commitments in writing is a classic fraud red flag Australia consumers should not ignore.