What’s a Scam?
A scam is simply a criminal act of fraud where someone tricks you into thinking you may receive something of value in return for a monetary exchange. In this report, I’ve differentiated scams from theft, where as a theft is where someone categorically steels money from you by accessing your bank account. Clearly, a scam is a crime and perpetrators get locked up!
List of common Scams
• Early-release superannuation schemes
• Fake lotteries
• Nigerian emails
• Get rich quick schemes
• Phishing email scams
• Credit card
• Romantic match-making scams
• Identity theft
• The list goes on and on- there’s so many scams doing the round that we couldn’t possibly cover them all in a 2 hour show
Five Common Scams explained
1. Early release superannuation schemes
You can’t access your money inside your superannuation until you reach a genuine condition of release but a promoter was going around saying he could get your super monies for you before you retire.
2. Nigerian Email Scams
In a money transfer scam you are promised huge rewards if you help someone transfer money by paying fees or giving them your bank account details. These are also called Nigerian Scams, if you are helping scammers to transfer money out of their country, or Up-Front Payment Scams.
3. Phishing Scams
Phishing scams are emails, telemarketing or door to door attempts to get your bank account details.
For example, earlier this year the Tax Commissioner Michael D'Ascenzo warned the community to be aware of a particularly nasty fake email claiming to offer refunds from the ATO.
The scam involved the Scammer sending an email pretending to be from the ATO.
The email contained a message in a zip file named "Restore your account" and asks for personal and credit or debit card details in order for the ATO to pay a tax refund.
The ATO never sends emails asking people to provide their personal information or credit card details.
4. Snail Mail Lottery Letters
These scams involve letters or emails saying you have won a lottery or prize and that to claim your 'winnings' you need to send money or your personal details. You will never receive the prize or it may not be what you expect if you do
5. Dating website scams
These scams occur on dating websites where the person you meet online asks you to send them money for bogus but highly emotional reasons.
A couple of examples:
(i) Melba met a man online who claimed to be from South Africa. They struck up a relationship and she ended up sending the man $6,000 – her life savings. She never heard from him again and feels “used and abused” by the man she thought she loved.
(ii) Paul, a retired grazier from remote central Queensland, met a woman named ‘Selina’, from Ghana, through an online dating website. They struck up a relationship and Paul told Selina “everything”. Then one day Paul received a phone call from a man claiming to be Selina’s brother. The man told Paul that Selina had been hit by a car and had suffered a brain haemorrhage and he asked Paul for $1200 to cover the costs of the operation.
This contact continued for months and the scammers used Paul’s perceived relationship with Selina to convince him to help her village through gold refining and butter processing. Over this extended period of time, Paul gave Selina and her accomplices over $200,000. Of course none of Paul’s money ever reached the village. Paul says he is hurt that he couldn’t help the people of the village.
How do we avoid being scammed?
Some scams are more avoidable than others. Those that require you to take action are far more avoidable than those where someone simply steals money from your credit card or bank account but a few simple rules apply;
Five Golden Rules to avoid a scam
1. If it’s too good to be true, it probably is!
2. ALWAYS use anti-spam, virus software
3. Never respond to emails, calls or door to door requests from people or organizations you don’t know
4. NEVER agree to anything straight away- do your research and get contact details
5. Keep your physical documents and records in a secure place and shred before disposal
What do you do if you think you might be being ‘scammed’?
The Government has set up some excellent websites that everyone should visit to educate yourself on how to avoid being scammed and to ensure you are receiving licensed advice.
www.moneysmart.gov.au
This is a fantastic website not only for info on Scams but for general independent financial education. Moneysmart lists companies to avoid and current scams doing the rounds as well as a list of unlicensed disqualified “financial advice” companies.
www.scamwatch.gov.au
This is another Government website devoted solely to Scams – providing advice on current scams going around.
www.asic.gov.au
Visit this website to check if the person offering you financial advice is licensed to do so.
www.donotcall.gov.au
Put your number on the register to stop unsolicited callers from being able to contact you.
