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Celebrity endorsement scams wreaking havoc
Scammers posing as Lisa Wilkinson, Cate Blanchett and even the hosts of Shark Tank are causing some serious financial damage, with Aussie victims losing up to $50,000 in a single hit.
According to the Australian Competition and Consumer Commission (ACCC), complaints of celebrity endorsement scams are up 400 per cent in 2018 so far.
Losses are up a shocking 3,800 per cent.
The scams, which attach well-known celebrities to what appear to be legitimate websites, have reeled in $142,000 in 2018, with Aussies older than 45 suffering the majority (63 per cent) of losses.
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“The growth in these scams is very concerning, particularly as over half the reports we received included a financial loss,” ACCC deputy chair Delia Rickard said.
“Most people lost between $100 and $500 and in one case, a victim lost more than $50,000 through fake celebrity endorsement of an investment scheme.”
Scammers target consumers by offering a ‘free trial’ for a product such as face cream, weight loss pills or investment scheme. Victims are prompted to provide their card details to access the ‘free trial’.
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However, once entered, the ‘trial’ has prohibitive terms and conditions that make returning the product near impossible. These terms and conditions are generally only available to read once the product has arrived.
Rickard said these scammers are organised and sophisticated, and often run other scams.
“It’s easy for them to create fake ads and websites to give credibility to their con, so people need to be very careful and sceptical about ads they read on social media and websites,” she explained.
“It is vital to research and read independent reviews of the company. Consumers should verify celebrity endorsement of products from the celebrity’s official website or social media account.”
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She said most of the reports refer to ads running on Google and Facebook, and urged the tech giants to do more about the scams.
“Every time consumers click on a scam ad, they are at risk of losing money.”
She continued, “If you are caught up in one of these scams, call your bank immediately to try and arrange a chargeback and to stop any further debits to your credit card.”
Watch out! Scams about
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These celebrities have been used as a front for scams:
Cate Blanchett
Deborah Knight (Nine News Sydney presenter)
Delta Goodrem
Dr David Sinclair (Head of Ageing Lab UNSW)
Dr Oz
Emma Thompson
Georgie Gardner (Today Show)
Jessica Rowe (Studio 10)
Kyle Sandilands
Lisa Wilkinson (Today Show)
Mark Shuttleworth (BBC/CNN)
Meghan Markle
Mikhail Varshavski (Dr Mike – US Celebrity)
Nicole Kidman
Oprah
Sally Field (American actress)
Sonia Kruger (The Voice, Today Extra)
Steve Baxter (Shark Tank)
