Office of Regulatory Services Department of Justice and Community Safety By the Office of Regulatory...

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Regulatory Services Department of Justice and Community Safety

By the Office of Regulatory Services, Department of Justice and Community

Safety

Material referenced from Little Black Book of Scams, ACCC

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Who are we?

• We are the Office of Regulatory Services (ORS), and I am with the Community Relations Unit

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The things we do at the ORS are:

• Births, Deaths and Marriages• Business and Industry Licensing• Fair Trading• Work Cover• Rental Bonds• Land Titles• Parking

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What we do

• The ORS is responsible for regulating many industries, occupations and activities that cover a wide range of businesses, single traders and employees in the ACT.– The staff from the Fair Trading Advice and

Complaints Unit advise consumers of potential scams in the ACT, warning signs to look out for and how to protect themselves from falling victim to a scam.

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Compliance

• Many scams originate from overseas or interstate.– The ORS role is generally limited to

advice and warning the community rather than compliance or enforcement action.• Other bodies such as the ACCC or the Police

may be more appropriate to take enforcement action against scammers.

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Myth Busters

• All companies, businesses and organisations are legitimate because they are approved and monitored by the Government–All internet websites are legitimate

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Myth Busters

• There are shortcuts to wealth that only a few people know–Scams always involve large sums of money• Scams are always about money

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Golden Rules

• Always get independent advice if an offer involves money, time or commitment– There are no guaranteed get-rich-quick

schemes – the only people who make money are the scammers• Do not agree to offers or deals straight away.

If you think you have spotted a great opportunity, insist on time to get independent advice before making a decision

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Golden Rules

• Do not hand over money or sign anything until you have done your homework and checked credentials of the company you are dealing with– Do not rely on glowing testimonies; find

solid evidence of a company’s success• Log directly on to a website that you are

interested in rather than clicking on a link provided in an email

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Golden Rules

• Never send money or give credit card/online account details to anyone you do not know or trust

• If it sounds too good to be true, it probably is!

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Great resources

• From the ACCC (Australian Competition and Consumer Commission)–The Little Black Book of Scams

• Scam Watch www.scamwatch.gov.au

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Story

• Listen to this story of a scam in full swing

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Types of scams

• Lotteries and competitions• Pyramid schemes and chain letters• Golden investment opportunities• Betting and computer prediction software• Money transfer requests• Banking, credit card and online accounts

Scams• Internet scams• Mobile phone scams

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Types of scams

• Health and medical scams• Psychic and clairvoyant scams• Dating and romance scams• Charity scams• Door to door scams• Job and employment scams• Small business scams

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Lotteries and competitions

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• You will receive a letter or email from the scammer saying you have won a lottery or competition.– The letter will explain that your name

and details were picked randomly from an email or address database.• You will be encouraged to keep your winnings

a secret until you are paid due to a mix-up in some names and numbers.

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• The “lottery” will normally ask for your personal or banking details to claim your prize.–They may also ask you to pay

certain fees to release your winnings and claim your money.• Some scammers will pressure you to

respond before a deadline, or else you lose your winnings

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Lotteries and competitions – General rules

• Legitimate lotteries do not require you to pay a fee to collect your winnings–Never send money to anybody you

do not know and trust• Don’t send personal details to anyone

you don’t know or trust. Rather than stealing money, scammers may steal your identity

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Lotteries and competitions – General rules

• Read all terms and conditions carefully. Sometimes, you will in fact get a prize, but it may not be what you were promised and call fees etc to claim the prize may exceed value of the prize.– Ask yourself if you entered any competition or

lottery. You cannot win any money or prize in a competition unless you have entered it yourself or someone has entered on your behalf.

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Pyramid scams

• Generally make money by encouraging you to make large up-front payment and the major way for you to recover money is convince other people to join and part with their money as well.– At some point, a pyramid scheme will

collapse which means many people will lose their money

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Pyramid scam

• Pyramid schemes are often cleverly disguised and people are often persuaded to join by family and friends.– However, there are many legitimate

multi-level marketing jobs based on commission where you can legally earn an income from selling genuine products or services

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Chain letter

• Asks you to send a small amount of money to people listed in the letter. You then put your name on the bottom of the list and send out copies of the letter to many people.–The letter claims by doing this, you

will receive a large amount of money in a short space of time.

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Chain letter

• At some point, the chain letter (pyramid) will collapse, meaning that: –you will lose the money you sent to

the scammers. –you have wasted time and money in

postage and photocopying

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Pyramid schemes and chain letters

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Pyramid Schemes and chain letters - General rules

• May be sent by family and friends who are unaware pyramid schemes are illegal– Never commit to anything at a high

pressure seminar• Do a lot of research and seek independent

advice before making a decision• Ask yourself, if I am not selling a

genuine product or service, is participation illegal?

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Money transfer requests

• Nigerian scam/advance fee fraud–Inheritance scam

• Overpayment scam

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Money transfer requests

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Nigerian scam/Advance fee fraud

• You will receive an email or letter from the scammer asking for help to transfer a large sum of money out of the country.–You are then offered a share of the

money for your assistance in agreeing to allow them to transfer the money into your bank account for safe keeping.

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Nigerian scam/Advance fee fraud

• You will be asked to pay all kinds of fees, taxes or bribes, but you will never receive the money and you lose the fees you paid.–You may also be provided with

‘documents’ showing the money is in your account. However, these will probably be fake documents.

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Inheritance scam

• You will receive a letter claiming that a long-lost relative has died, leaving you a huge inheritance as the known next-of-kin.–Scammers ask you to confirm your

ID and provide personal documents or bank account details.

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Inheritance scam

• The inheritance will most likely be non-existent and you will:–Lose any fees or taxes you have

paid to the scammers–Possibly have your identity stolen

as well

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Overpayment scam

• If you sell goods online or through the newspaper, you may receive a generous offer above the value of the goods.– You will receive payment by cheque or

money order for more than the agreed price.• Scammer will say it was an accident and

ask you to refund the difference via money transfer.

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Overpayment scam

• Scammer will hope you transfer the excess money to them before you discover that the cheque bounced or the money order was phoney.–You will have lost your money as

well as the goods if you have already spent them.

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Money transfer requests – General rules

• Never send money or give credit card/banking details to anyone you do not know or trust.–Don’t accept cheque or money

orders if they are more than the agreed price.• Ask yourself; is it really safe to transfer

money for someone you don’t know?

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How to report a scam

• You should contact the ACCC or report a scam to SCAMwatch if the scam appears to come from overseas or interstate.–ACCC Infocentre: ph 1300 302 502–www.scamwatch.gov.au

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How to report a scam

• If a scam appears to originate in the ACT or you have any queries, you can also contact the ORS Advice & Complaint Unit. –Ph: 6207 0400–[email protected]

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The End!

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