SCAMS TARGET YOU! PROTECT YOURSELF

Queenslanders continue to fall prey to the criminal activities of fraudsters and scammers as unprecedented numbers of sophisticated swindlers bombard us with electronic, phone and postal scams.

Fair Trading Minister Margaret Keech jointly launched the Australasian Consumer Fraud Taskforce’s four-week campaign today, with the strong message ‘SCAMS TARGET YOU! Protect Yourself.’

Mrs Keech said the seriousness of these crimes had prompted agencies across Australia and New Zealand to work together to help people protect themselves against them.

“There seems to be a scam created to trap just about everyone – from dodgy emails and text messages, to phishing, to lottery scams, to fake investment schemes, bogus medical cons, to the Nigerian letters, to fake employment and money laundering schemes, to identity theft,” Mrs Keech said.

“On identity theft alone, losses to the Australian community are estimated to be in excess of $1 billion annually.”

During 2006, the Office of Fair Trading received reports of over $1.1 million lost to Queenslanders through scammer activity. The top four scams reported to the Queensland Office of Fair Trading in 2006 were:

1. Chain letters– illegal pyramid selling scheme that arrives via traditional mail, fax or email with promises of easy cash. The scam involves sending money to the person at the top of the list, adding your name and address to the bottom, then resending the letter to a specified number of people. The so-called 'David Rhodes' chain letter claimed to have turned $218 into $78,185 within the first 60 days of operating the 'business plan' outlined in the letter. This scam generated more than 350 reports to the Office of Fair Trading in 2006 and appears to target

Number of reports to Queensland OFT in 2006: 351

Targets: Unemployed and elderly appear especially vulnerable.

“As part of a 2004 national blitz the Queensland Office of Fair Trading netted 20,000 ‘David Rhodes’ letters before they reached Queensland homes,” Mrs Keech said.

“If anyone receives one of these chain letters, they should be thrown immediately into the bin.”

2. Invoice fraud – uses high-pressure sales tactics to chase funds from businesses for advertising in false publications. They may also use the names of true publications, but have no real association with the organisation. Whilst many are not reported, Queensland complainants have registered over $70,000 in losses over the past two years.

Number of reports to Queensland OFT in 2006: 267

Targets: All businesses but particularly small operators.

“In 2004, Queensland was the first state to pursue a Federal Court injunction on a Gold Coast invoice fraud operator,” Mrs Keech said.

“The Office of Fair Trading remains on the case, with further court action scheduled this month, to protect businesses not only in Queensland but Australia-wide”.

3. Fake lotteries and competitions – claims that you are the lucky winner of a competition you didn't enter. They ask you to send your bank account details so the money can be deposited into your account, instead they withdraw the money. Alternatively, they ask you to send an ‘administrative fee’ so you can claim your prize (usually ‘in the millions’) but it never arrives and your money is lost.

Number of reports to Queensland OFT: 263

Targets: Anyone with a registered address or email account.

“These scams are run by overseas operators who strike quickly, take your money and disappear. Protecting yourself is your best form of defence,” Mrs Keech said.

“The Office of Fair Trading needs to hear about any new twists on old scams so we can warn Queenslanders against falling victim.

4. Computerised gambling programs – software systems that claim to predict horse race winners or stock market trends. They are usually advertised as a business opportunity or investment. Packages can range in price from $1000 to $15,000 or more.

Number of reports to Queensland OFT: 243

Targets: Professionals and retirees with disposable funds to invest.

“No computer program can tell you which horse will win or what stock will go up, so be careful where you invest your money,” Mrs Keech said.

“People should be aware that anyone can fall for these kinds of slick swindles, no one is immune because the scammers out there are inventing new tricks everyday.”

For more information on how to protect yourself from scams download a copy of How to be Consumerwise at www.fairtrading.qld.gov.au or phone 13 13 04.

Media contacts: Jo Gibbons 3224 2007 or Carolyn Folland 3119 0075.

Background to Australasian Consumer Fraud Taskforce

Consumer scams are crimes of dishonesty such as forgery, counterfeiting, on-line deception, and theft that are targeted at people who seek to purchase goods and services. Potential victims can be those who use fixed line or mobile phones, computers and the internet, older people, and those who use professional advisers.

As part of a whole-of-Government approach to combat consumer fraud and scams targeted at consumers, the Australasian Consumer Fraud Taskforce was established in March 2005 and comprises all of the governmental regulatory agencies and departments in Australia and New Zealand who have responsibilities for consumer protection.

The ACCC has joined forces with these agencies to raise awareness about scams and fraud prevention. The four-week campaign is being by the Taskforce to help people protect themselves from scams. The overall theme for the four weeks of the campaign is 'SCAMS TARGET YOU - Protect Yourself’’.

Agencies participating in the Taskforce are:

Australian Government: Attorney General’s Department; Australian Bureau of Statistics; Australian Communications and Media Authority; Australian Competition & Consumer Commission; Australian Federal Police (represented by the Australian High Tech Crime Centre); Australian Institute of Criminology; Australian Securities & Investment Commission; and the Department of Communications, Information Technology & the Arts.

New Zealand Government: NZ Commerce Commission; Ministry of Consumer Affairs.

State and Territory Governments: All State and Territory Police jurisdictions;Australian Capital Territory – Office of Fair Trading; Consumer Affairs Victoria; New South Wales – Office of Fair Trading; Consumer Affairs Northern Territory; Queensland – Department of Tourism, Fair Trading and Wine Industry Development; South Australia – Office of Consumer & Business Affairs; Tasmania – Office of Consumer Affairs & Fair Trading; Western Australia – Department of Consumer & Employment Protection.

Taskforce partners

Taskforce members are joined in communicating with Australian consumers about scams by a range of community, non-Government and private sector organisations. Visit http://www.scamwatch.gov.au for a list of Taskforce partners.

Consumers who think they've spotted a scam can check the SCAMWatch website at www.scamwatch.gov.au which has detailed information about scams, or report a scam on 1300 795 995.

Consumers can also fill out the survey on the Australian Institute of Criminology website at http://web.aic.gov.au/surveys/acft/.