Fraud and scams are a growing concern across all sectors, and strata communities are no exception. Whether you are a resident or committee member, staying informed and vigilant is key to protecting your finances, privacy, and community trust.
Fraud and scams are evolving rapidly and targeting individuals, communities and businesses. Whether you are an owner, resident or committee member, understanding how to spot and prevent fraudulent activity is essential to protecting your finances, privacy, and peace of mind.
The Growing Threat
Scammers are becoming more sophisticated, using technology and impersonation, among other ways, to deceive people. In Australia alone, billions of dollars are lost annually to scams, with phishing, identity theft, and investment fraud among the most common types.
In the strata sector, fraud can take on unique forms—forged invoices, fake emails or unauthorised access to funds. These schemes often exploit gaps in oversight or trust within owners corporations / body corporates and management structures.
General Scam Safety Tips
Here are some universal practices to help you stay protected:
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- Verify Before You Trust: Always confirm the identity of anyone requesting money or sensitive information. Don’t rely solely on caller ID or email addresses—they can be hoaxes.
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- Be Sceptical of Urgency: Scammers often pressure you to act quickly. Take a moment to stop, think, and verify before responding.
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- Protect Your Data: Use strong passwords, enable two-factor authentication, and never share login credentials or banking details over email or phone.
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- Avoid Clicking Suspicious Links: Phishing emails and texts often contain links that install malware or steal information. If in doubt, delete it.
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- Monitor Your Accounts: Regularly check bank statements and credit reports for unfamiliar transactions.
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- Report Suspicious Activity: If you suspect you’ve been targeted, contact your bank, local authorities, or Scamwatch.
Strata schemes can be vulnerable due to shared finances, layered governance structures, and the need for clear oversight and communication among stakeholders.
Here’s how to stay vigilant:
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- Demand Transparency: At Bright & Duggan Group, all financial transactions, contractor agreements, and insurance policies are documented and accessible to owners.
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- Confirm Identity for Key Decisions: Verify the identity of participants when voting or signing off on major works, especially in remote or digital settings.
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- Educate Residents: Look out for your more vulnerable neighbours. Host information sessions or distribute newsletters on scam awareness and financial safety.
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- Use Secure Communication Channels: Avoid sharing sensitive information via unsecured email or messaging apps. Check email addresses carefully for any domains that are made to look like reputable company email addresses.
The Role of the Strata Manager
Bright & Duggan help safeguard communities against fraud. We take this responsibility seriously by:
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- Implementing robust financial controls: All financial transactions, contractor agreements, and insurance policies are documented and made accessible to owners. We ensure dual authorisation for payments and conduct regular audits to detect anomalies.
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- Maintaining secure communication channels: We use encrypted platforms and verified email domains to prevent impersonation and phishing attempts.
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- Monitoring for red flags: Our team is trained to identify suspicious activity, such as unusual invoice patterns or unauthorised access requests, and escalate concerns promptly.
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- Supporting committees and owners: We guide committees through due diligence processes for major decisions.
What to Do If You Suspect Fraud
If something feels off, act quickly:
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- Document everything: Keep records of suspicious communications, transactions, or decisions.
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- Raise it with your strata manager or committee: Bring concerns to your strata manager, owners corporation or body corporate.
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- Contact authorities: Depending on the nature of the fraud, report to the appropriate authorities, such as the bank or the police.
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- Seek legal advice: If funds have been misused or contracts breached, consult a strata lawyer.
Final Thoughts
Fraud prevention isn’t just about technology—it’s about awareness, accountability, and community vigilance. In strata living, where trust and transparency are vital, taking proactive steps can protect not just your interests but also those of your neighbours.
By staying informed and engaged, we can build safer, more resilient communities—one decision at a time.