Have yourself a scam-free Christmas

…and may all your purchases turn out right!

In 2005, the Australian Competition and Consumer Commission received thousands of calls from consumers reporting scams.

"Many of these calls were alerts, but others unfortunately were to report losses", ACCC Chairman, Mr Graeme Samuel, said today.

"Scams have included lottery scams, dodgy business opportunities and pyramid schemes and the ever-present Nigerian style scam.

"Scammers always know where the quick money can be made and hiding behind the anonymity of online purchases has given scammers a vast territory to operate in. Buying and selling in the internet space has resulted in unsuspecting consumers being out of pocket.

"Such scammers are difficult to trace and are rarely caught.

"There are ways, however, for consumers to still enjoy the thrill of the bargain or the rare internet find without getting scammed.

"Before shopping or banking online ensure that your computer is well protected with anti-virus software and a firewall. Identity theft is a risk and could result in money being lost to scammers. Ask a computer software/security professional if you are not sure what to use".

Some simple tips for online shopping:

• know who you are dealing with – check that telephone numbers and contact details are true. Avoid traders who don't tell you who and where they are
• read the description of the product carefully – check the size, colour, value and safety of the product
• read all the fine print including refund and complaints handling policies
• note the final cost – check the currency, postage and handling and other charges
• confirm the final cost before paying
• print and keep a copy of each stage of the transaction
• pay safely – only use a secure site and pay by credit card or similar
• avoid money transfers and direct debit as these are the scammer's favourite tools
• never send bank/credit card details as payment via email, and
• Be wary of super cheap bargains and fabulous prices for popular items from traders that may have packed up and moved on before the New Year taking your money with them.

Extra tips for those specialty items:

Internet auctions

• read the security, payment systems and insurance information provided on the auction website, and
• consider the risks before dealing with anyone outside the auction system. Scammers often approach a bidder offering extra bargains and rare items, and once the money is paid no goods are received.

Ring tone downloads and other mobile phone extras

• check the phone compatibility – not all phones work with all ring tones and even an inaccessible ring tone can still result in a premium charge for the message
• note all the trader details in the ad and the introductory text message, especially the help phone number and the stop service number
• avoid traders who do not provide such details, and
• check the terms – a 'free' ringtone could simply be the first one leading to a costly subscription service.

"The holiday season is a time of traditions and old sayings", Mr Samuel said. "When it comes to a scam-free Christmas there is one old saying that cannot be beaten:

"If it sounds too good to be true it probably is!"