Be Scam Smart

The Office of Fair trading received over 1300 reports of scams in 2004. With 2005 already quickly upon us, it is appropriate to look back at 2004 and see where we went wrong and what to look out for to keep us ‘Scam Smart” in 2005.

Fair Trading Minister Margaret Keech is encouraging Queenslanders to stay alert and avoid falling victim to scams. “I encourage everyone to be suspicious of unsolicited offers and to do their homework before handing over money.” The top 5 scams for 2004 included:

David Rhodes chain letters
Arriving via post, fax or email, this letter claims to turn an investment of $218 into $78,185 within the first 60 days. It involves sending $10 to the name at the top of the list, then deleting that name and adding your own to the bottom. Participants (most of whom have lost money) are then required to send the letter to 200 or more people.

Computerised gambling software programs
Software systems that claim to predict horse race winners or stock market trends. Usually advertised as business opportunities or investments, salespeople use high-pressure tactics to sell the software. Packages can range from $1000 to $15,000 or more.

Fake lotteries and competitions
Scammers, usually from overseas, claim you are the lucky winner of a competition you didn’t even enter! To claim your million dollar prize you must send your bank account details, or send money to enter a bogus sweepstake.

Letter scams – Nigerian etc.
Scammers ask for your bank account details so the can transfer a large sum of ‘inheritance money’ before they are taxed on it in their own country. You will of course receive a proportion of the inheritance for your help. Participants quickly find that instead of transferring funds into their account, you are left without a penny.

Invoice fraud and false billing
Professional scammers approach businesses and charities through email, phone or mail selling services such as advertising in bogus publications products they have not ordered. Small businesses, charities and community organisations are particularly at risk, as they may not have procedures in place for purchasing goods or services.