NILS scam alert

Written on the 6 August 2024 by SAFCA

Department of Social Services want to ensure you they are aware of scam activity in relation to the No Interest Loans Scheme. They have previously spoken with respective departments regarding funding directly to Good Shepherd Australia New Zealand (GSANZ) or to their community partners for the delivery of NILS. See below for further information.

Background

• GSANZ has advised the department (DSS) of instances where scammers are posing as NILS community partners in attempt to gain access to people’s personal details.

The scams have been noted on:

• digital advertising (Facebook and Instagram) using providers branding and promoting NILS with inflated and incorrect loan amounts, features and benefitsdigital chat channels (like Messenger), engaging people in chat, acting as providers where they ask people for personal information (name, email, address, MyGov details) and claim its part of the procedure in applying for a loan
  • Examples are attached here and here.
• GSANZ have advised that they know of 2 clients who have lost money (one reported a loss of $6,000, the other figure is unknown at this stage). 
• The Salvation Army (a NILS community partner) has also notified separately of approx. 20 clients who have contacted them believing they had been talking to The Salvation Army but it was a scam. We are not aware if any losses occurred at this stage.
• The Smith Family (not a NILS community partner) has also advised scammers are posing as them to offer fake NILS loans on receipt of personal information.

Communications

• Warnings on the scams have gone out across available channels including the DSS website - Department of Social Services | Department of Social Services, Australian Government (dss.gov.au)
• GSANZ has a pop up message on their website and linking individuals back to the official message on the DSS website.
• GSANZ will sending messaging out through the NILS Community Partner network for the organisations to reflect this information on their own websites and in their NILS advertising.
• Warnings are also on/being rolled out across:
  • Services Australia social media and Community Grants Hub websites.
  • The National Debt Helpline (NDH) website. NILS is often in the top three website hits on the NDH page.
  • The Australia Families Facebook page and DSS LinkedIn.
  • Through Uniting, for their delivery of the Escaping Violence Payment, which often refers/receives referrals from NILS.
• GSANZ have reported the situation to Scamwatch.

Support for individuals impacted

Support has been provided by the respective organisations to clients who have reported the scams, including supporting individuals with options for an actual NILS loan and guidance of what steps to take should the person have provided personal information to the scammer (which is also included in the messaging on the DSS page).

We wanted to ensure you were aware of this information and so you can check in with GSANZ/your community partners and consider any actions you may need to take. If you are aware of other instances of scams in relation to NILS please let DSS know.