Small business operators can be easy prey for scamsters trying to winkle out money for unsolicited – and unneeded – 'services', Australian Competition and Consumer Commission, Chairman, Mr Graeme Samuel warned today.
"Domain name solicitations, in particular, are a frequent source of complaints to the ACCC and fair trading agencies", Mr Samuel said. "Domain names are web addresses. The right one is very important to any business that wants to attract customers to its website.
"But scamsters attempt to hoodwink businesses into buying or 'renewing' a service that is superfluous to the businesses' needs.
"Often an office will get a letter offering a new domain name which is very similar to its existing one. For example, instead of your-business.com.au, the letter may offer your-business.net.au. Though the difference is subtle the two domain names cannot be interchanged, as they are completely different domain name levels.
"This subtle difference can be missed in a busy office, often in the belief that the letter has come from the original, real registrar.
"After all no-one would expect a membership renewal to come from anywhere but the original trader, so why should domain names be any different?
"Often the business does not realise this has happened until the renewal notice from the original registrar arrives.
"Despite court action having been taken in this area over the last few years, the message is not reaching all small businesses. Nowadays many of these letters are not straight out scams and once the money is paid it is almost impossible to get a refund", Mr Samuel said.
One person who has been caught out is Mrs Deborah Matthews, a typical accounts manager of a small business. During the last couple of years she and others like her have received a number of such letters.
"My advice is to check your existing internet contracts and renewal dates before rushing in to taking up any offers. If possible, confirm with your IT department on internet name requirements", Mrs Matthews said.
To inform business owners and their staff the ACCC has prepared a fact sheet that is available on its website, via the eBusiness links.
Some practical advice to small businesses includes:
- read such letters carefully
- know who your real registrar is
- find out the renewal date for your domain name
- take note of what your domain name really is
For more information or to make a complaint contact the ACCC Infocentre 1300 302 502.