Scams How can we help protect young

Australians from scammers?

Greg Trengove Outreach Manager

ACCC

Overview• The ACCC and ACFT• Scam facts• Scams verses spam• Why scams succeed • Common types of scams • Scam education • Scam deterrence• Golden rules• Reporting scams• What if you have been scammed? • The ACCC’s Youth strategy

Who is the ACCC?• The Australian Competition & Consumer

Commission

• A national law enforcement agency

• Administers & enforces the Trade Practices Act

What do we do? • Promote competition• Protect consumers• Regulate certain infrastructure

What is the ACFT?

• The Australasian Consumer Fraud Taskforce

• 20 agencies working together to fight scams

• Three main focus areas

1 Scam Education – Annual scams campaign

2 Scam Deterrence/Disruption/Enforcement

3 Scam Research

A few Facts about Scams In any given year

• 6 million Australians are exposed to scams

• 800,000 fall victim in some way

• Almost $1 billion in losses

Many scams are

• Mass-marketed

• Global in nature – originating overseas

• Highly sophisticated

• Organised crime

A few more Scam facts

• People often keep their decision to respond to scams private

• Victims often have better than average knowledge in the area of the scam content

• Victims spend more time and cognitive effort analysing scam offers than non-victims

• People decreasingly consider scams to be criminal activity

The changing nature of Scams

Scams are increasingly:

• Prominent

• Sophisticated

• Dynamic

• Personally targeted

• Cause significant financial and other harm to Australian consumers and business

Scam verses Spam

• Scams attempt to steal your money or

identity by stealing your personal details

• Spam is unsolicited emails or sms

• Spam may be used to deliver scams

• Spam may also deliver malicious software

to computers and mobile devices

Why do Scams succeed?

• Seduction - They appeal to your needs or desires and try and push those buttons

• Deception - They look like the real thing by using legitimate looking symbols or language to con you into giving money or information

• Nobody is immune – people from all backgrounds, ages and income levels fall victim to scams

Three dangerous myths

1. Companies, businesses & organisations are legitimate, trustworthy bodies – vetted by the government

2. All websites are legitimate businesses

3. There are some secret short cuts to wealth

Remember: If it sounds to good to be true – it usually is!

1. Companies, businesses & organisations are legitimate, trustworthy bodies – vetted by the government

2. All websites are legitimate businesses

3. There are some secret short cuts to wealth

1. Companies, businesses & organisations are legitimate, trustworthy bodies – vetted by the government

2. All websites are legitimate businesses

3. There are some secret short cuts to wealth

Consumer scams• Lotteries, sweepstakes and competitions

• Job and employment scams

• Golden investment opportunities

• Sports investment scams

• Money transfer requests

• Banking, credit and online account scams

• Internet scams

• Mobile phone scams

• Health & medical scams

• Door-to-door scams

Business scams

• Domain name renewal scams

• Directory or unauthorised advertising

• False billing scams

• Overpayment scams

• Faxback scam

• Sports investment scams

Commonly reported Scams

Scams commonly reported• Advance fee fraud• Phishing• Pyramid Schemes • Lotteries, competitions and fake prizes

Work from home or employment/small

business opportunity scams are increasing

Money Transfer Scams

• Also Advance fee fraud or Nigerian scams

• Requests to help transfer money

• Camouflaged as an employment opportunity

• Offered a percentage of funds

• Required to pay taxes or fees before ‘paid’

• Provide bank account details – then stripped

• Can be money laundering which is illegal

Phishing, Mishing and Vishing• All are attempts to steal personal information

to commit fraud and ultimately your money.• Phishing - uses links or attachments in

emails to trick you into providing personal or banking details.

• Mishing uses your mobile phone (sms etc) to secure information.

• Vishing uses Voice over Internet Protocal technology to steal your details.

Scams education research• People may be closed to general scams messaging

as they believe they are already fully informed• Messages outlining how specific scams work are

more effective• Personal stories create engagement & resonance• Targeting educational material to those vulnerable

to scams most effective• Effective scam education requires similar

techniques to those used to market scams• Motivational & cognitive approaches necessary

Scams - Education

• SCAMwatch• Little black book of scams• Scams fact sheets

– Phishing– Money laundering– Lotteries, sweepstakes and competitions – Sports investment scams

• Australasian Consumer Fraud Taskforce annual scams awareness campaigns.

SCAMwatch• Transferred from Treasury in 2005 • Redeveloped and relaunched in 2006

Purpose of SCAMwatch• Informs consumers and small

businesses how to recognise, avoid and report scams

• Identifies and explains a variety of common scams that regularly target Australian consumers and small business and tips to avoid them.

www.scamwatch.gov.au

www.SCAMwatch.gov.au

Features of SCAMwatch www.scamwatch.gov.au

SCAMwatch key features

• Radars alerts – provide warnings of emerging scams

• Victim stories – attempt to establish relevance and resonate messages

• Report a scam – where to report different scams

• How to protect yourself – tips to avoid being scammed

• See a scam – example scams illustrate scammer tricks

• ACFT Portal for the annual scams awareness campaign

• Scams target you page – shows anyone can be a victim

See a scam - Phishing

Scams Target You!

2010 ACFT campaignMain features of the 2010 ACFT campaign:

• An ACCC scams report

• A broad scams awareness media campaign

• A media event like the 2009 Fraud Forum

• A private, government and community

partner program to deliver key scams

awareness messages

• Developing SCAMwatch as the portal

Scam Disruption

• Education designed to minimise the impact of scam activity by empowering consumers and business to avoid scams

• Disruption is aimed at reducing the instances of scam offers by targeting the activity of scammers

• Includes all action taken to pursue scammers (Enforcement - Securing funds)

• Enforcement is difficult due to jurisdiction

Scam Research

• Research informs education and disruption initiatives

• Research streams1 Reasons why people respond to scams

2 Emerging scam trends and practices

3 Detriment of scams (financial and other)

4 Efficiency of education and disruption practices

Golden Rules1. No guaranteed ‘get-rich-quick’ schemes2. Don’t agree to offers or deals straight away3. Don’t rely on glowing testimonials4. Don’t hand over money or sign anything before doing

some homework5. Get independent advice if an offer involves

• Time• Money • Commitment

6. Never send money, account or credit card details to someone you do not know and trust

7. Do not follow links, open attachments or respond to spam (unsolicited) emails or SMS – delete them

8. Always be sceptical - If it looks too good to be true it probably is!

Where to report Scams• Police for fraud, theft and other crimes• ASIC for financial or investment scams• ATO for income tax scams or identity theft • Banks for banking and credit card scams• Consumer and Business Affairs for local scams • ACMA for spam emails or SMS • ACCC for scams from interstate or overseas or if

you are unsure who to contact• Contact details available on SCAMwatch under

‘report a scam’

If you have been scammedReduce the damage:• If you have been tricked into signing a contract or by a

door-to-door seller call Consumer & Business Affairs.• Contact your bank immediately if you think someone has

got hold of your account or credit card details or you have sent money via electronic funds transfer.

• If you have used a wire service to send money to a scammer – contact the provider immediately.

• If your computer has been compromised – run system and virus check, change passwords, upgrade security, seek assistance from a computer professional.

• Mobile phone scams – contact your mobile phone provider.

Targeting young people

• ACCC is scoping a Youth Strategy

• Evaluating the issues, messages and communication channels to more effectively engage with young Australians

• Youth focus groups

• Looking at Facebook and resources for schools/teachers

• Scams one of the issues identified

Questions?If you have any questions about the ACCC, ACFT Scams or SCAMwatch or would like to provide feedback contact:

Visit SCAMwatch www.scamwatch.gov.au Visit the ACCC website www.accc.gov.au

Call the ACCC Infocentre 1300 302 502

Thank you for your time