Common Consumer Scams

1. Online Shopping Scams

With the convenience of online shopping, scammers have found a fertile ground to deceive and defraud.

• How they work: Scammers often create fake advertisements on genuine     retailer sites or set up entirely fake online stores, pretending to be legitimate sellers.
• What to look for:
   
  • Unusual Payment Methods: A key indicator of a scam is a request to pay via pre-loaded cards, wire transfer, or cryptocurrency. These methods make it almost impossible to recover funds. Always prefer secure payment platforms like PayPal.
   
  • Lack of Security Features: Check for URLs starting with https:// and a closed padlock symbol in your browser. These indicate a secure connection.
   
  • Prices Too Good to Be True: If an advertised price seems unbelievably low, it's likely a scam.

2. Investment Scams

Australians are losing significant amounts of money to investment scams, which can be highly sophisticated.

• How they work: Scammers contact you (via phone, email, or social media)     offering "once-in-a-lifetime," high-return/low-risk investment opportunities. They may impersonate bankers, stockbrokers, or financial planners, using convincing websites and fake prospectuses. They might even pay out initial "returns" to build trust and encourage further investment. Offers can relate to shares, real estate, term deposits, foreign currency trading, or even cryptocurrencies.
• What to look for:
   
  • Unrealistic Returns: If the rates and returns are significantly higher than what reputable financial institutions offer, be suspicious.
   
  • Pressure Tactics: Scammers often use urgency and pressure you to make a quick decision.
   
  • Remote Access Requests: Be wary of advisors who ask for remote access to your devices to "complete trades" on your behalf.
   
  • Unconventional Payments: Requests for payment using cryptocurrency or to an account with an unrelated name are major red flags.
 
• Staying Safe:
   
  • STOP, THINK, AND CHECK! If an investment seems too good to be true, it usually is.‍
  • Independent Advice: Get independent advice from a financial advisor registered with ASIC.
  • Do Your Research: Check ASIC's MoneySmart "Investor Alert list" for companies you should not deal with. Search for reviews using the investment name plus "scam." Verify company addresses and contact details independently – do not rely on what the scammer provides.‍
  • Licensing: Anyone offering investment products or financial advice in Australia must have an Australian financial services license, which you can check on ASIC's MoneySmart website.‍
  • No Unsolicited Contact: Do not provide your contact details to unsolicited callers or emails. Hang up or delete the email.

3.Dating and Romance Scams

Dating and romance scammers prey on individuals seeking companionship, often costing victims millions annually, with funds being almost impossible to recover.

• How they work: Scammers create fake profiles on online dating websites,     social media, or via email. They spend months building a relationship and     gaining your trust before fabricating emergencies (e.g., medical expenses) and asking for money. They might also ask you to receive and forward money on their behalf, potentially involving you in money laundering.
• What to look for:
  • Fake Profiles: Profiles often use identities of real people (e.g., military personnel) and claim to be working abroad.
   
  • Requests for Money: A strong indicator is when they ask for money for      emergencies or travel, especially after a relatively short period of      online interaction.
   
  • Asking to Handle Funds: Be extremely cautious if asked to receive or transfer money on their behalf.

4. Classified Scams

These scams target individuals using classified websites to buy or sell goods or services.

• How they work: The scammer posts a fake advertisement (e.g., for cars,     boats, caravans, puppies, rental properties) that looks legitimate, often using pictures and information from genuine sellers.
• What to look for:
   
  • Unbelievable Prices: If the advertised price sounds too good to be true, it probably is.
   
  • Unusual Payment Methods: Requests for payment via wire transfer,      international funds transfers, pre-loaded currency cards, or      cryptocurrency (like Bitcoin) are major red flags, as funds sent this way      are almost impossible to recover.

Dating and romance scammers prey on individuals seeking companionship, often costing victims millions annually, with funds being almost impossible to recover.

• How they work: Scammers create fake profiles on online dating websites,     social media, or via email. They spend months building a relationship and     gaining your trust before fabricating emergencies (e.g., medical expenses) and asking for money. They might also ask you to receive and forward money on their behalf, potentially involving you in money laundering.
• What to look for:
   
  • Fake Profiles: Profiles often use identities of real people (e.g., military personnel) and claim to be working abroad.
   
  • Requests for Money: A strong indicator is when they ask for money for      emergencies or travel, especially after a relatively short period of online interaction.
   
  • Asking to Handle Funds: Be extremely cautious if asked to receive or transfer money on their behalf.

5. Classified Scams

These scams target individuals using classified websites to buy or sell goods or services.

• How they work: The scammer posts a fake advertisement (e.g., for cars,     boats, caravans, puppies, rental properties) that looks legitimate, often using pictures and information from genuine sellers.
• What to look for:
   
  • Unbelievable Prices: If the advertised price sounds too good to be true, it probably is.
   
  • Unusual Payment Methods: Requests for payment via wire transfer,      international funds transfers, pre-loaded currency cards, or cryptocurrency (like Bitcoin) are major red flags, as funds sent this way      are almost impossible to recover.
    
     
  • Lack of Inspection: Be wary if the seller pushes you to pay without      allowing you to inspect the item or property in person.

Act Quickly if You Suspect a Scam

If you believe you have been targeted by any of these scamsor notice suspicious activity:

• Contact IMB Bank immediately on 133 462.
• Report to Authorities: Report the scam to the Police and/or via ScamWatch at scamwatch.gov.au.
• Seek Support: For identity compromise, contact IDCARE at idcare.org or 1800    595 160.

Your vigilance and quick action are crucial in protecting yourself and others. Stay informed, trust your instincts, and always verify before acting.

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