Assessing income and assets in cases of suspected fraudulent transactions 108-25072901
Expand allThis document explains how to assess income and assets affected by scams.
If a person transfers assets and/or income and does not receive adequate financial consideration in return, these amounts are generally assessed as gifts.
If a person advances money with the intention that the funds are to be repaid, then these amounts are assessed as loans. See Assessing a failed loan.
Sometimes a customer will advise the money that has previously been assessed as a gift or a loan was a scam.
A customer will have to provide evidence of the alleged scam. Process provides more information about the type of evidence required.
What is a scam?
A scam is a type of fraud.
Scammers use various methods such as email, text messages, phone calls, social media, websites and dating or gaming apps to trick people into paying money or giving away their personal information.
The most common types of financial scams advised by customers to Services Australia involve investment scams or online dating and romance scams.
This procedure does not cover Identity Fraud. See Identity fraud.
Investment scams
Scammers impersonate legitimate investment and finance companies, using convincing marketing and technology to make their investment seem attractive.
Investment scams usually promise big returns, and scammers often create fake data to make a person think their investment is growing.
When the person tries to withdraw their funds, the scammers will come up with reasons not to pay or convince the person they need to pay further fees to access their funds.
Online dating and romance scams
Scammers use digital media to create fake profiles and find people looking for friendship or love.
Once the scammer gains the person’s trust, they may give fictitious stories about why they need the customer’s help and money.
The scammer may convince the person to set up accounts, transfer money or invest in fake schemes.
Where fraud is involved
A person may consider they have made a particular sort of financial investment, including lending money to a company or individual (or legal practitioner) for a specific purpose. In some instances where fraud is involved this arrangement may be a scam. The money may not have been invested but taken for personal use.
Example: A person may think they are investing in a company. The documents may show that neither a loan nor any other kind of investment occurred.
Where a customer advises they have been a victim of fraud or scam, consider whether the customer needs or wants to speak with the Scams and Identity Theft Helpdesk.
If the customer is advising of what has occurred in respect of their income or assets, the case should be referred to a Complex Assessment Officer (CAO).
Any investment funds recovered and returned to the customer are not considered to be part of the scam assessment and will be assessed from the date they are paid to the customer.
Other assistance available
If it cannot be established that the customer has been the victim of a scam, there may be other options available to them.
This could include:
Related links
Identifying and making suitable referrals to the Complex Assessment Officer (CAO)
Assets hardship for income support payments
Home Equity Access Scheme (HEAS)