Scam warnings

Eighteen agencies across Australia and New Zealand (including the ACCC and ASIC) have joined forces to combat consumer fraud, warning consumers about the scams that affect thousands of Australians every year.

The Parliamentary Secretary to the Treasurer states: “The best protection against scammers is to hit the delete key, hang up, or throw it in the bin.”

Scammers are becoming increasingly sophisticated in the way they target people. Consumers who respond to these scams nearly always lose their money, and most never see it again.

“So resist the temptation. Be wary. Do not respond to these scams. Do not send money up front to collect supposed winnings from lotteries that you didn’t enter. Don’t reply to letters promising you rich returns. Do not click on links in emails and provide personal information, and do not believe people who call you up to offer a great investment deal”.

The key characteristics of a scam include:

	It comes out of the blue
	It sounds like a quick and easy way to make money
	It tells you there is almost no effort or risk
	It sounds just too good to be true

There are many good websites that can help you identify possible scams. Here are some that we recommend:

ASIC Australian Securities and Investments Commission
fido Produced by ASIC. Consumer financial tips and safety checks
snopes General site for investigating scams and urban myths

Published : 25 February 2006