Scammers more active than ever: ACCC

The Australian Competition and Consumer Commission has seen a continuation in the growth of consumer scam activity into 2009, ACCC Deputy Chair, Mr Peter Kell, said today.

Mr Kell said from January to March this year, Australians reported to the ACCC's Infocentre that they had lost almost $30 million to scams.

"This is very worrying figure for a three month period.

The ACCC had seen a significant increase of more than 60 per cent in scams reported in 2008 compared to 2007 with an acceleration in latter part of 2008," Mr Kell said.

Delivering the Law Week South Australia Justice Oration in Adelaide, Mr Kell said that the current financial crisis "has provided scammers with greater opportunities to take advantage of Australians at their most vulnerable."

"Australian Bureau of Statistics figures suggest that around one in 20 Australians fall victim to some sort of consumer scam each year, with a direct cost to the community of about $1 billion."

This was broadly consistent with findings from overseas.

"For example the UK Office of Fair Trading found that around one in 15 people had responded to a scam. The US Federal Trade Commission found that more than 10 per cent of the adult population had lost money to a scam in a single year. Anyone can and does fall."

"Consumer fraud is as old as consumer markets. But now is the time more than ever for Australians to be vigilant.

"Scams come in all shapes and sizes, and they change their spots with alarming speed and efficiency – bushfire scams, stimulus scams, swine flu scams, employment and rental scams… think of a type of financial exchange and there’s likely to be scam activity in there somewhere."

Mr Kell documented common scams as including:

• puppy/pet scams
• scamming of personal details
• holiday scams
• work from home scams, including money laundering, and
• Sport arbitrage schemes.

 He said he was "constantly surprised at the ingenuity and sophistication of scam operators.
 
 "However, I find that often in talking to consumers in the wider community, there is still the view that all scam operators are dodgy looking guys in dirty jackets, 'amateurish' and easy to spot, or else the authors of the world’s worst emails. In this light, too many consumers believe that the only people who fall for scams are gullible or careless.
 
 Mr Kell said consumers can take simple steps to avoid "being served up on a platter to scammers.
 
 "Be alert and follow these golden rules to reduce the chance of being scammed: 

• If it sounds too good to be true, it probably is
• Never respond to out of the blue requests for personal details
• Check to see if the request is legitimate
• Get independent advice if the offer involves money, time or commitment;
• Independently obtain contact details- never click onto email links
• If you feel under pressure, don’t respond – it is best you carefully consider the consequences of your actions as scammers are preying on your emotions
• Destroy old bills, records and expired cards- don’t just bin them
• Check your bank statements regularly.

"To learn more about scam that commonly target Australians and how to spot them, visit the SCAMwatch website on www.scamwatch.gov.au.  This website provides you with a wealth of information and is the home of the Little Black Book of Scams, which is a must read guide to detecting and protecting yourself against scams."

A copy of the address will be available from the ACCC website,  under Media Centre, Speeches.