Loyalty program members warned of scam texts

The National Anti-Scam Centre has detected a sharp rise in loyalty program scams after 209 reports to Scamwatch in the past four months.

The scam works by sending a text message stating loyalty points are expiring.

The text or email includes a link to a fake website which prompts customers to login.

Customers may also be prompted to provide credit card details to use loyalty points.

Scammers then steal customers' points and login details and personal information to use on other platforms to commit identity fraud.

"We are very concerned that Australians experiencing cost-of-living pressures may be more susceptible to these scams," ACCC deputy chair Catriona Lowe said.

"Scammers are deliberately panicking consumers by claiming their points are expiring soon. We urge people to immediately delete or ignore any message regarding a loyalty program that contains a link."

According to the ACCC, the majority of scam reports had been in relation to Qantas Frequent Flyer, Telstra and Coles loyalty programs.

Loyalty programs allow members to access promotions and receive discounts on their purchases.

Australians lost a record $3.1 billion to scams in 2022, an 80 per cent increase on total losses recorded in 2021, according to the ACCC.

Research from CHOICE revealed 9 in 10 people suspect they have encountered at least one scam in the past 12 months with over half of respondents encountering a suspected scam every week.

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"Scams are increasing rapidly throughout Australia, often creating significant distress and financial hardship for victims. New technological advances mean scams are also becoming more difficult to identify.

"Our research found 88 per cent of people say scams have become more sophisticated or harder to spot recently," CHOICE CEO Alan Kirkland said.

Consumers are being urged to never click on a link included in a text message and to access the app or website independently to verify the status of loyalty points.