A scam is when someone tricks you into sending money or sharing information.
Fraud is when someone uses your money or details without your permission.
The words fraud and scam are often used interchangeably, but they are not quite the same. The easiest way to understand the difference is to think about permission. A scam usually involves someone convincing you to hand over money or personal information. Fraud, on the other hand, usually happens without your knowledge or approval, such as when your card or identity details are used without you knowing.
What is a scam?
A scam is when someone pretends to be trustworthy so they can persuade you to do something. This might be a text message that looks like it came from your bank, a phone call about an investment opportunity, or an urgent request to pay a bill. The scammers goal can be to get you to send money, click a link, share a password, provide a security code or download an app. Scammers often create a sense of urgency so you act quickly without having time to check if something feels off.
What is fraud?
Fraud is when someone uses your money, account or personal details without your permission. This could include unauthorised card purchases, someone applying for credit in your name, or a criminal accessing your account after stealing your details. You may only discover it when you spot something unusual on your statement or receive an alert from your bank.
A simple way to remember it is: a scam tricks you into acting, while fraud happens without your involvement. If you ever feel unsure, it’s always worth pausing, checking the request carefully, and reviewing your accounts for anything suspicious.
For more information
Talk to your adviser or contact our team on 1300 881 716
Please visit Annual Cyber Threat Report 2024-2025 at Cyber.gov.au.
Important information
Information current as at June 2026.
This paper has been prepared by BT, a part of Westpac Banking Corporation ABN 33 007 457 141 AFSL & Australian Credit Licence 233714 (Westpac).
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