Massive, exotic, tragic and very dangerous! We’re not talking about a cornered King Kong, but about one of the most prolific, successful types of scams to date, advance fee frauds.
"Advance fee frauds come in all shapes and sizes", Australian Competition and Consumer Commission Deputy Chair, and Chair of the Australasian Consumer Fraud Taskforce, Ms Louise Sylvan, said today. "Examples are pyramid schemes, the infamous Nigerian scam, and the more recent Princess Diana scam".
Agencies involved in the Australasian Consumer Fraud Taskforce list it – along with lotteries - as one of the most reported scams in Australia.
"Advance fee frauds all have one thing in common", Ms Sylvan said. "They all want some money upfront from a consumer before they deliver you the big payback later!
"Millions of dollars are lost worldwide to this long enduring scam and Australian consumers are no exception. The victims come from all walks of life including highly educated professionals. Like a message in a bottle carrying a million dollar cheque, these scams are personal, mysterious, engaging and promise unexpected wealth. They also have the added bonus of appearing to help someone in need", said Ms Sylvan.
"These scams - which look like the stuff of dreams - quickly turn into a nightmare when people lose their hard-earned money".
Coming by post or email, advance fee frauds can be recognized by:
they come out of the blue
they carry the promise of unanticipated wealth or easy money
the sender often has an urgent tragic tale resulting from a major disruption to their life and needs help to free up assets (sometimes from corrupt government officials) sitting in a secret, inaccessible bank account, or
the sender needs help in transferring money between countries and will pay generous amounts for access to your bank account to carry out these transfers.
"Unfortunately it is not unusual to have consumers report money losses from these scams, sometimes even as high as tens of thousands of dollars or more", Ms Sylvan said.
"Such scams are sophisticated and highly organised. The scammers continuously re-invent the letters and clever use of technology makes them hard to trace. It is unlikely that a victim will ever see their money again.
"To avoid real-life tragic tales, the Taskforce is sending out a strong message to all consumers. Don't help the scammers to scam you! When a scam comes a-knocking hit the delete key or make straight for the recycling bin".
The Taskforce's message and further information on scams can be found on the Scamwatch website at www.scamwatch.gov.au. If you have spotted a scam or have been caught out by a scam call 1300 795 995.
Media inquiries
Ms Louise Sylvan, Deputy Chair, (02) 9230 9152or 0410 610 326
Ms Lin Enright, Media, (02) 6243 1108or 0414 613 520
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 18 government regulatory agencies and departments in Australia and New Zealand.
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
Department of Communications, Information Technology & the Arts.
New Zealand Government:
NZ Commerce Commission
Ministry of Consumer Affairs.
State and Territory Governments:
Australian Capital Territory – Office of Fair Trading
Consumer Affairs Victoria
New South Wales – Office of Fair Trading
Northern Territory – Department of Justice
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.
