Scams target you! Protect your computer

The Australian Competition and Consumer Commission has advised consumers of steps they could take to help protect themselves from internet scams.

"The internet permeates our lives in ways that were unimaginable ten years ago," ACCC Deputy Chair, Ms Louise Sylvan, said today. "It is now intrinsic to social and commercial interactions and the provision of information in ever expanding areas such as education and entertainment. Unfortunately, the internet is not free from scams and scammers. Some scams are specifically designed to take advantage of the types of interactions occurring on the internet."

Jobs and employment scams and advanced fee/up-front payments like the Nigerian scams are among the most frequently complained about scams to the ACCC.

Ms Sylvan indicated that the ACCC is particularly warning consumers to be wary of the increasing incidence of 'work from home' scams: "these are often not real jobs being advertised or sent to people's in-boxes, they are 'mule scams' and are forms of money laundering, a serious criminal activity."

The ACCC suggests internet users take the following simple precautions to protect themselves from internet scams.

1. Keep your protection software up-to-date

Use computer protection software, including anti-virus software, to prevent viruses and other malware (malicious software) from exposing you to scams that may result in personal and sensitive information being sent from your computer without your knowledge.

Make sure you regularly download and install the latest security patches for all your computer software, including web browser applications. Use an 'auto-update' function if this option is provided. Make sure that you have a computer 'firewall' to help prevent malicious access to your computer.

2. Don't respond in any way to unsolicited emails

Opening spam messages may also lead to malware being secretly installed on your computer. If you have opened an unsolicited email, think before you click—clicking on links in such emails may take you to websites where malware is installed on your computer without you knowing.

Be very suspicious of emails from an unknown origin, especially ones that promise you money, good health or a solution to all your problems. Be sceptical of offers that are too good to be true—they usually are!

Don't disclose personal information. Never respond to an email requesting confidential banking details such as your PIN or internet banking password.

3. If in doubt, delete

If you receive an email that seems dubious—for example, the subject line looks suspicious or you don't recognise the sender—it is safest to delete it immediately without opening it.

Background

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.

Fraud perpetrated using the internet is emerging as a significant concern. For example, in a recent Australian Securities & Investment Commission  consultation paper on the review of the Electronic Funds Transfer Code, ASIC states in relation to internet banking fraud that:

"Industry estimates of net losses have been in the vicinity of $25 million per year in recent years; however, it acknowledged that this is only a round figure and that the total costs....may be higher."

In the context of this emerging online environment the ACCC considers it appropriate to provide internet users with advice on some simple steps they can take to minimise the likelihood of their falling prey to internet scams.

Some recent examples where unsuspecting computer users have been used by scammers:

Employment (Mule) Scams

Harry receives an email advertising 'Job Offers' from what a company purporting to have world wide offices with the carrot of "work from home, no expensive offices to pay rent for". 

All that Harry has to do is receive payments into his bank account and then on forward these payments, via Western Union (or a like agency), to an overseas account.  Harry is promised a commission as soon as the transfer is conducted (generally between 7 and 10 per cent). 

The senders of these messages are, however, online criminals using innocent people to transfer illegally obtained funds. Under Australian law, if you participate in money laundering activities, you could be charged with a criminal offence.

If you have been approached by someone asking you to transfer money for them, delete the email.  Ask yourself—why would anyone want to pay someone that they do not know to transfer so much money? 

Don't be a mule! In 2006, the ACCC received complaints from a number of people who had responded to email job advertisements offering work as money transfer agents. The employers were overseas and seemed to have a genuine and convincing need to use private bank accounts in Australia. Their websites were professional and convincing. The employers insisted on strict honesty, and required the applicants to send 100 points of identification. This built up trust in the applicants, many of whom complied in good faith, sending photocopies of their Drivers Licence and credit cards and documentary proof of their address, as well as providing their bank account details.

They accepted deposits into their bank account, kept a small commission and forwarded the balance overseas by Western Union or Moneygram.
Unfortunately these people were caught up in a scam, helping criminals to launder stolen money through their accounts. They have had to change their accounts, and because they gave away their personal financial information to criminals, they are now at a high risk of having their identities stolen and used for other criminal purposes.

NEVER open spam emails and NEVER allow unknown third parties to use your bank account. If you have been caught up in such a scam, report it to your local Police immediately. You should also check your credit reference rating regularly.

Advanced Fee Fraud /Nigerian Scam / 419 scam

Mary received an e-mail, written in screaming capital letters, commencing with the words:

"Dear Sir/Madam: I represent the recently deposed Minister of Agriculture for Nodambizia, who has embezzled 30 million dollars from his corrupt ministry and now needs to get it out of the country..."

The letter is seeking Mary's assistance to transfer these funds into her account for a cut of the total amount embezzled—usually around 30 per cent. If Mary responds to this email, she will be asked to provide her bank account details and other personal information so as to complete the necessary paperwork.

However, before the transaction can be finalised, Mary will be asked to pay thousands of dollars in 'taxes', 'attorney costs', 'bribes' or other advance fees.  In truth, there's no minister and no money—except for the money Mary is asked to put up in advance.

Mary has received an Advanced Fee Fraud/Nigerian Scam/419 scam email. These scams originated in Nigeria, although they now occur around the world. The reference to '419' is to the section of the Nigerian Criminal Code dealing with 'Obtaining goods by false pretences'.  If they take the bait, recipients of this type of scam email face serious financial loss--or worse.

The ACCC receives a number of complaints from innocent consumers who have been taken in by these types of scams. Some have lost their life savings. If you receive a suspicious unsolicited email don't respond in any way to this spam - don't click on any links in the email and remember that if an offer sounds too good to be true, it probably is.

Taskforce background

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 four-week campaign was launched March 4 by the Australasian Consumer Fraud Taskforce to help people protect themselves from scams.

The overall theme for the four weeks of the campaign is 'SCAMS TARGET YOU - Protect Yourself'. The theme for the third week of the campaign is 'Protect Your Computer'.

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.