If it seems too good, it's a scam

EACH day ordinary Australians are being bombarded with scams and rip-offs. Many of those scams are cleverly disguised as genuine offers.

Thousands of people are still falling into the trap, losing their life savings, retirement funds and livelihoods in the process.

The Australian Competition and Consumer Commission (ACCC) warns that fake lotteries, advance-fee frauds, get-rich-quick schemes and miracle health cures are some of the favoured means of separating the unwary from their money.

Others include chain letters and pyramid schemes, investment scams, money transfer requests, banking and online account scams, mobile phone scams, employment scams and small business scams.

But they all have one common theme, tricking people into disclosing personal information to steal identities or directly access funds.

Choice spokesperson Ingrid Just said the Storm Financial scandal was definitely one of the worst scams in recent history.

Townsville-based Storm Financial had more than 14,000 clients who had invested billions, but were left stranded when the company collapsed two years ago.

The collapse was mainly due to over-ambitious growth plans, encouraging huge debt among customers, and paying top dollar for multiple acquisitions.

Forensic police officer Sean McArdle, 43, was just one of the victims of the scandal. The Coolum man lost millions.

“Most of the victims have lost absolutely everything,” he said.

“Many of them will live in debt that they have no chance of repaying.”

Mr McArdle said his property and his life had been placed on hold, even though he had taken all the precautions when it came to investing his money.

The only investments he makes now are in lawyers. “Every cent I earn goes to preparing my next lawyer’s bill,” he said.

But Mrs Just said identity theft and scams through email and SMS were among those that hit the hardest.

“Almost 70 per cent of all email in Australia is spam-related,” she said.

“And most of those emails are scams.”

She said that with the advent of technology, scams were becoming more frequent.

To avoid risky situations, Mrs Just said people should be wary of responding to addresses with unknown senders.

“Never give out personal information and always protect your identity,” she said.

Mrs Just said that in 2007, 5.8 million Australians had been subject to scams and, of those, 453,100 people lost money to a combined value of $1billion.

“It is really important that people report these things so that others don’t fall into the same traps,” she said.

With the recent flood disaster in Queensland, Mrs Just said there was a possibility of an increase in scammers targeting those who were in vulnerable positions.

North Coast Police Region acting superintendent Terry Borland said ATM and skimming scams were two that had had an immense impact.

He advised people to be wary of the dangers of internet scams and not to release private information to anyone.

“If you believe that it doesn’t sound right, then don’t engage in it,” Supt Borland said.

Beating scams

  • Never provide personal information to unknown people or organisations.
  • Always research organisations to make sure they are legitimate.
  • Never leave mail in an unlocked mail box – if you are going away, get a friend to empty it each day.
  • Never sign contracts or provide personal information to people knocking at your door.
  • Never accept things on the spot.
  • Almost 70 per cent of all email in Australia is spam-related.

Why Tweed’s water supply is safe despite dam algae warning

Premium Content Why Tweed’s water supply is safe despite dam algae warning

Blue-green algae amber alert at Clarrie Hall Dam

Winds whip up fires across parts of northern NSW

Winds whip up fires across parts of northern NSW

AVIATION support is assisting at one of four blazes in the Tenterfield Shire.

'Fly high': Promising sportsman and 'larrikin' remembered

'Fly high': Promising sportsman and 'larrikin' remembered

Eddie Allen’s life has been remembered in a moving service