$300 million lost to scams in 2016

Have you been the victim of a scam? You’re not alone, it seems.

There were 200,000 reported scams to Australia’s consumer watchdog, the ACCC, and the Cybercrime Online Reporting Network (ACORN), last year.

Australians lost a massive $300 million to scams in 2016 – rocketing almost 50 per cent on the 2015 figures.

Fake investments, online stores and romance scams were the biggest frauds Aussies fell victim to – conning over $100 million out of unassuming consumers. Fraudsters asking for advanced fees, hacking and inheritance scams were also common rip-offs.

Social networks, especially Facebook, are a breeding ground for scams – feeding into the massive jump in online scams, the Australian Competition and Consumer Commission warned on Monday – the start of Australasian Consumer Fraud Taskforce’s Fraud Week.

A huge chunk of those who fell prey to romance and dating rip-offs were contacted via Facebook. If a potential love interest asks for money, then alarm bells – not wedding bells – should start ringing.

“If someone you’ve met through social media but you’ve never met in person asks you for money, your alarm bells should be ringing. Don’t ever wire transfer or send money to someone you don’t know because you won’t see it again,” said ACCC Deputy Chair Delia Rickard said.

Probably too good to be true

The advice from the ACCC is if it seems too good to be true – it probably is.

Other con jobs to look out for are ads for online stores on social media selling discounted products by well known brands like Pandora jewellery, Nike and Weber, that don’t actually exist.

“Wherever you see an offer that seems more generous than normal, do your research on the company, where the product is coming from, check the company’s website and try and find any reviews about the business before making a purchase. Only pay using secure payment methods such as Paypal or a credit card,” said Rickard.

Older Australians are particular vulnerable to scams with the over 55’s age group accounting for almost half of reports to the ACCC’s Scamwatch.

The watchdog is working with Facebook, as well as the major banks, MoneyGram, Paypal, Western Union and Apple to better tackle scams and reduce the harm experienced by consumers.

Consumers concerned about scams should visit www.scamwatch.gov.au.