Woman loses $500k to scam—here’s how to avoid a similar fate

In an increasingly digital world, financial security is more important—and more fragile—than ever. With scams becoming more sophisticated and convincing, even the most cautious individuals can fall victim to fraud.

Losing a lifetime of savings in a single scam is no longer an isolated incident but a widespread crisis affecting thousands. As financial threats evolve, so must our awareness and protection strategies.

Take the story of Loraine Carpenter, a 75-year-old Brisbane resident, as a stark reminder that our nest eggs are vulnerable to the increasingly sophisticated tactics of scammers.

After selling her and her mother’s house, she found herself with $700,000 in savings—a substantial sum that should have paved the way for a serene retirement. Yet, within a span of five months, her financial security was obliterated by scammers who conned her out of half a million dollars. 

The scam began innocuously enough. Loraine was searching for investment opportunities when she stumbled upon a deepfake advertisement on Facebook, featuring what appeared to be tennis star Ash Barty endorsing an investment platform. This led her to TBX Titanium, also known as the Exchange Bank, which presented itself as a legitimate online broker for cryptocurrencies.

Loraine’s interactions with the scammers were convincing. She received calls from a man named Mike, who claimed to be in a bustling trading room.

‘It was very noisy and all the voices in the background had American accents,’ she recalled, adding that the reassurance that her investments were being transferred into an Australian bank account at Bendigo Bank allayed her fears.

However, the reality was far more sinister. The bank account was set up by a mule—a victim of another scam—who had been duped into opening the account and registering a business by a fake UK employment agency. Loraine’s $25,000 deposits, which she made weekly or bi-weekly, were being funnelled straight into the pockets of the scammers.

After her first withdrawal, her bank, ANZ, phoned up and checked the transaction. ‘They phoned up and said there is a big chunk of money going out. And I said yes, I authorised that. They didn’t ask again,’ she said.

Even when her investment appeared to fluctuate on a fake website, mimicking the volatility of a real trading platform, Loraine was reassured rather than alarmed. The scam only unravelled when she attempted to transfer funds into a legitimate Exodus wallet and found the money to be worthless tokens.

The aftermath of Loraine’s ordeal is heartbreaking. When ANZ, her bank, followed up with Bendigo Bank, the money had already been moved overseas.

‘For five months, hundreds of thousands of dollars [were] going through that account, disappearing overseas on a day-to-day basis, and nobody picked it up. Nobody. It just went on and on and on,’ she said, appalled that Bendigo Bank did not recognise any red flag or detect that the account was opened by a mule.

Despite lodging multiple reports and complaints to authorities, including the police and the Australian Financial Complaints Authority (AFCA), Loraine hit dead ends. She said she is now considering moving to a different country, as she can no longer afford to live in Australia.

‘I’m planning to leave the country and go to Ecuador because I can’t afford to live here, and I can’t rent or buy anything,’ she said.

Loraine’s story is not unique. Australians reported to Scamwatch financial losses totalling $2.74 billion in 2023, with investment scams like hers accounting for almost half of those losses.

In response, new legislation has been passed in parliament, imposing fines of up to $50 million on banks and social media companies that fail to prevent scams. However, these laws do not mandate compensation for victims, a point of contention among consumer advocates and independent MPs.

To avoid falling victim to similar financial disasters, here are some crucial steps to take:

1. Be sceptical of online advertisements: If an investment opportunity appears in an ad, especially one featuring a celebrity, be wary. Verify the legitimacy of the company through independent research and official channels.

2. Consult with trusted financial advisors: Before making significant investments, seek advice from licensed financial advisors who can provide a second opinion on the investment’s legitimacy.

3. Monitor your investments: Only use official and verified platforms to monitor your investments. Be cautious of any platform that only shows positive reviews or lacks transparency.

4. Verify bank details: If you’re transferring money, ensure the bank account is legitimate and not associated with recent scams. Contact the bank directly if you have any doubts.

5. Stay informed about scams: Keep up-to-date with the latest scam tactics by visiting government websites like Scamwatch. Awareness is your first line of defence.

6. Report any suspicious activity: If you suspect you’ve been targeted by a scam, report it immediately to your bank and relevant authorities.

Loraine’s financial disaster is a sobering reminder that scams can happen to anyone. By staying vigilant and informed, we can protect our hard-earned savings and ensure our retirement remains secure.

Share your thoughts and experiences with the YourLifeChoices community in the comments below—your insights could help someone else avoid a similar fate.

Also read: Victim shares text exchange with scammer—here’s what to look out for!