Australians are losing $7M a month in Internet fraud according to ScamWatch, and they are being targeted on all fronts. Whether it be through online romance scams or business franchise scams or even through false customer surveys that collect data, the scammers are out there. But what scams are trending right now?
In the last couple of years, scams delivered via telephone remained the preferred delivery method, with scams delivered via telephone calls and text messages comprising over half (56 per cent) of all report of scams reported to the ACCC.
Online shopping scam reports also increased by 65 per cent to over 8000 contacts and more than $4 million in reported losses. This increase is likely to reflect the fact that more Australians are shopping online. Unfortunately, scammers like shopping online too – for victims. The Australasian Consumer Fraud Taskforce’s Fraud Week campaign, Outsmart the scammers, will focus on raising public awareness about how to buy and sell safely online without being duped.
It might seem obvious to some, but to others it is easy to get caught in a scammers web. So we took a look at what is trending in scams at the moment so you are hopefully kept a few steps ahead.
The ACCC is warning shoppers to watch out for a fake Woolworths customer satisfaction survey that asks for bank account details in exchange for a $150 gift voucher. There has been a surge in reports to the ACCC with 140 complaints received since the scam resurfaced at the start of September 2013.
Scammers are sending this survey out of the blue – usually via social media or email – and asking you to complete questions before you can claim the voucher. They may also ask for banking details to complete the survey. If you are duped, you will find that the vouchers are fakes and retailers won’t honour them.
“Scammers impersonate well-known businesses to get their hands on your personal details. Once you have unknowingly sent your details to a scammer, they can steal your money – and possibly even your identity,” ACCC Deputy Chair Delia Rickard said.
“Last year, victims of this survey scam reported money stolen from their credit card with losses up to $1,000. Others were unwillingly subscribed to premium SMS services, which cost money for every SMS received.
Sharyn* was checking her Facebook page and found a friend had ‘liked’ a link to a Woolworths survey, which offered a $150 voucher for a five minute survey. Sharyn completed the questions and filled in personal details at the end. She received the voucher in her email yet discovered at the checkout that it was a fake. When she went home she was shocked to discover unauthorised transactions on her credit card.
Scammers will go to great lengths to court their targets and trick them into thinking they are forming a genuine and special relationship. They often approach victims through legitimate dating websites or online forums, and then move the communication off the platform and away from any safeguards in place by the site provider, where they can manipulate victims into handing over money. Scammers may also ask to chat via webcam, secretly film the interaction, then blackmail victims into handing over money in exchange for not sharing the footage with family and friends. They may even offer to meet victims in person, and will either not turn up, or worse put the person in a dangerous situation that can have tragic consequences.
Scammers will do anything to gain their victim’s confidence and trust. They will invest months and even years grooming victims into believing that the connection is real. They may hide behind a fake profile of an attractive person, whose image has been taken straight from the internet. They may even seem to know all about the target’s interests and hobbies as they have researched the person online or befriended them through an online forum.
Scammers are also expert at pushing people’s emotional buttons. They may profess their love, send gifts, make promises and propose grand plans for the future – anything to strengthen the connection. Once their victim’s defences are lowered, the scammer will spin an elaborate tale of woe about how they need financial help with a crisis, such as being ill or stranded. If the victim pays, the scammer will continue to ask for money to help them out of other situations. Scammers often request that the money be sent via wire transfer as it’s almost impossible to trace and rare to recover money sent this way.
SCAMwatch is warning people thinking about buying a franchise or small business to beware of exciting new franchise opportunities that may actually be scams.
Franchising scams can come in the form of a pyramid scheme dressed up as a reputable franchise. These scams may appear to be slick and professional, with a sophisticated website, marketing material and buzz-words. The scammers may also promote the franchise as a golden opportunity for investors to join a ‘proven’ business that requires minimum effort, experience or skill with instant rewards.
A legitimate franchisor will provide a prospective franchisee with a disclosure document 14 days before entering into an agreement or handing over any money (as is required by law under the Franchising Code of Conduct). This document should contain important information about the franchise, including the payments to be made, the contact details of existing and former franchisees, and inform franchisees of their cooling off rights.
The tell-tale sign of a pyramid selling scheme is that they recruit people rather than selling a legitimate product or service. In a recent example of such a business opportunity it is difficult to identify the true nature of the business and pin-point what is actually being bought or sold.
In the end all pyramid schemes collapse, leaving participants with empty pockets and potentially in hot water too as these schemes are illegal in Australia.
If you are worried or suspicious you can report a scam here, or speak to someone about your concerns on 1300 795 995
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