Tuesday, April 28, 2020

Scams - Part 1

Hotlines & Defence Resources:

Australia National Security >>1800 123 400 or if you are overseas: +61 1300 1234 01, Mail: Department of Home Affairs, PO Box 25, Belconnen ACT 2616, Email: [hotline@nationalsecurity.gov.au](mailto:hotline@nationalsecurity.gov.au) >> https://www.homeaffairs.gov.au/about-us/our-portfolios/national-security/security-coordination/national-security-hotline

Australia Police Emergency >> 000

Victoria Police Non-Emergency >> 131 444

Victoria Police Online Reporting >> Theft, Lost Property, Property Damage, Register your Party, Register your Absence from Residence >> https://onlinereporting.police.vic.gov.au/

Australia Ministry of Defence >> https://www.defence.gov.au/Contacts/

Australia Federal Police >> https://www.afp.gov.au/contact-us

Australia Secret Intelligence >> http://www.asis.gov.au/About-Us/Contact-us.html

Australia Cybersecurity Centre >> https://www.cyber.gov.au/

Agency Cybercrime Australian Cybercrime Online Reporting Network (ACORN) >> www.acorn.gov.au

Australian Communications and Media Authority (ACMA) >> www.acma.gov.au or call the ACMA Customer Service Centre on 1300 850 115

Google "Your suburb name" council hotline to contact your Mayor for assistance

Crime Stoppers >> 1800 333 000

Google "Snap Send Solve" app to report local issues.

Neighbourhood Watch >> www.nhw.com.au Join the local Neighbourhood Watch Facebook/newsletters to learn about personal safety, home security and local crime trends.

Consumer Fraud Reporting >> https://www.consumerfraudreporting.org/current_top_10_scam_list.php

Stay Smart Online Servicewww.staysmartonline.gov.au • CyberSmart website—www.cybersmart.gov.au • Stay Smart Online guides—available at www.staysmartonline.gov.au/get-involved/guides.

Where to find help or support

If you’ve lost money to a scam or given out your personal details to a scammer, you’re unlikely to get your money back. However, there are steps you can take straight away to limit the damage and protect yourself from further loss.

Contact your bank or credit union If you’ve sent money or personal banking information to a scammer, contact your bank or credit union immediately. They may be able to stop a money transfer or cheque, or close your account if the scammer has your account details. Your credit card provider may be able to perform a ‘chargeback’ (reverse the transaction) if your credit card was billed fraudulently.

Recover your stolen identity. If you suspect you are a victim of identity theft, you must act quickly to reduce your risk of financial loss or other damages.

Contact IDCARE—a free, government-funded service that provides support to victims of identity crime. IDCARE can help you to develop a response plan to take the appropriate steps for repairing damage to your reputation, credit history and identity. Visit the IDCARE website at www.idcare.org or call 1300 432 273.

Apply for a Commonwealth Victims’ Certificate—a certificate helps support your claim that you’ve been the victim of identity crime and can be used to help re-establish your credentials with government or financial institutions. Visit the Attorney-General’s Department at www.ag.gov.au (or call 02 6141 6666) to learn more about protecting and recovering your identity.

Contact a counselling or support service If you or someone you know has been scammed and may be suffering from emotional stress or depression, please talk to your GP, local health professional or someone you trust. You may also consider contacting counselling or support services, such as Lifeline—when you need support in a crisis, contact Lifeline on 13 1114 (24/7) or visit www.lifeline.org.au

Beyondblue—for information about depression or anxiety, contact beyondblue on 1300 224 636 or visit www.beyondblue.org.au

Kids helpline—telephone and online counselling and support service for young people aged between five and 25 years. Contact Kids Helpline on 1800 551 800 or visit www.kidshelpline.com.au

Financial Counselling Australia—if you are in financial distress call 1800 007 007 to talk to a free financial counsellor or visit www.financialcounsellingaustralia.org.au.

Where to report a scam

You can help others by reporting fraud to the appropriate authorities. Your information will help these organisations build a better picture of the latest scams and warn other people about what to look out for.

The following organisations take reports about particular types of scams.

The Little Black Book of Scams is available free online at www.accc.gov.au/littleblackbookofscams.

Protect yourself—sign up to Scamwatch www.scamwatch.gov.au —where you can sign up for free email alerts on new scams targeting consumers and small businesses. You can also follow Scamwatch on Twitter at @scamwatch_gov  or http://twitter.com/scamwatch_gov.

How Scam savvy are you? >Take the quiz at consumer.vic.gov.au/scams

Australian Securities and Investments Commission (ASIC) >> www.moneysmart.gov.au or call the ASIC infoline on 1300 300 630 

For Tax-related scams,>> Australian Taxation Office (ATO)—to report a tax scam or verify whether a person contacting you from the ATO is legitimate: • call 1800 008 540 or forward your email tax scam to [ReportEmailFraud@ato.gov.au](mailto:ReportEmailFraud@ato.gov.au). 

Consumer Protection Agencies >> 

Consumer Affairs Victoria provides information to business, consumers, landlords and tenants about their rights and responsibilities >> https://www.consumer.vic.gov.au/about-us 1300 558 181

Dispute Settlement centre >> www.disputes.vic.gov.au >> DSCV can help you resolve all sorts of disputes, including common neighbourhood disputes involving fences, trees, animals, noise and drainage, difficult or anti-social behaviour, workplace disputes, disputes within committees, clubs or Incorporated Associations, matters referred to mediation by a magistrate 

Australian Capital Territory Office of Regulatory Services www.accesscanberra.act.gov.au 13 2281

New South Wales Fair Trading www.fairtrading.nsw.gov.au 13 3220

Northern Territory Consumer Affairs www.consumeraffairs.nt.gov.au 1800 019 319

Queensland Office of Fair Trading www.fairtrading.qld.gov.au 13 7468

South Australia Consumer and Business Services www.cbs.sa.gov.au/ 13 1882

Tasmania Consumer, Building and Occupational Services www.cbos.tas.gov.au/ 1300 654 499

Western Australia Department of Mines, Industry Regulation and Safety www.consumerprotection. wa.gov.au/ 1300 304 054

  1. What resources can you learn more about the latest local scams?
  • Watch current affairs news segment.
  • Visit website that watches scams (google it)
  • Subscribe to scam watch newsletters to get the latest scam that is going around details.
  • Talk to people and your family and friends.

The golden rules to protect yourself

Generally, the hardest way is the way to make the most money. Don't fall for getting lots of money quick schemes. You will find yourself homeless very soon.

Be alert to the fact that scams exist. When dealing with uninvited contacts from people or businesses,  whether it’s over the phone, by mail, email, in person or on a social networking site, always consider the possibility that the approach may be a scam. Remember, if it looks too good to be true, it probably is.

Know who you’re dealing with. If you’ve only ever met someone online or are unsure of the legitimacy of a  business, take some time to do a bit more research. Do a Google image search on photos or search the internet for others who may have had dealings with them.

Keep your personal details secure. Put a lock on your mailbox and shred your bills and other important documents before throwing them out. Keep your passwords and pin numbers in a safe place.

Be very careful about how much personal information you share on social media sites. Scammers can use your information and pictures to create a fake identity or to target you with a scam.

Beware of unusual payment methods. Scammers often ask for payment by wire transfers, preloaded cards and even Google Play, Steam, or iTunes cards and Bitcoin. These are nearly always a sign that it is part of a scam.

Protect yourself

A tiny minority of business advertisements and flyers are a way for criminals to entrap victims.

Go to the police for an official police check document for employment. There are scammers and dodgy companies that do invalid police checks.

If someone calls you to offer you a good telecom deal and want your pin number, you should hang up.

If you are unsure, contact the Police non-emergency hotline or contact the authority hotline after googling yourself.

Home scams:

Recent scams for older adults to be aware of are:

•    door knocks from people claiming to be officers from Council offering services such as home care packages; and

•    phone calls from people claiming to be from organisations that offer home care packages and services with cheaper costs.

It is important to remember that the Council do not randomly knock on peoples doors offering to sell services. Council officers will only show up at a pre-arranged time to provide home care services, such as cleaning and personal care. Council officers carry ID badges and will produce them on request.

If you are unsure, contact the council's service centre by phone to check that the person is employed by the Council and ask to speak to their supervisor.

All home care packages and services are accessed through My Aged Care. If you do get a call, tell them you will think about the offer and phone the My Aged Care contact centre. The staff at My Aged Care can tell you if the organisation is a registered provider and give you the correct phone number to call and discuss. Chances are the person does not work for the organisation, or the organisation doesn't exist.

As the weather warms up, scammers and conmen are out again with offers to fix your roof for a low price - but only if you pay now. Always ask them to give you a quote and get another quote from a trusted source - there is an excellent chance nothing is wrong with your roof.

If the scammer/conmen insist on you paying now and offer to drive you to an ATM or bank, alarm bells should ring.

Points to remember:

> Never use a phone number or other contact details they have given you, check with someone you trust as there is a good possibility the contact details are to another conman ready to take the call;

> Never pay with vouchers such as iTunes purchased at the supermarket; and

> If you feel threatened and go to the bank with them, tell the bank teller you are feeling threatened and being forced to take the money out. They have been trained in how to assist you.

  1. A fake tradesman asks you if you want to get some painting done cheaper than you can get anywhere else.
  • Then the rain comes, and it washes out into the garden.
  • How do fake tradesman deal with your roof?
    • They lure you by saying you are too old to climb up the ladder. They go up pretend to fix stuff. Stomp around and crack more tiles
    • They usually ask for cash up front, then say need to go to the hardware store to get supplies, disappear.
    • They offer you a pressure deal that for today only you get this deal at $x then they run away with the money.

Revealing sensitive information over the phone

Identity thieves love to dupe individuals—particularly ones that are elderly and vulnerable—into revealing their information by pretending to be from their bank or insurance company. They will try to get information by offering fake deals, like credit card cashback offers or free trips—so if you ever get a phone call about a deal that sounds too good to be true, that's because it is.

When in doubt, call your credit card provider or bank directly to verify the offer is actually from them before revealing any information about yourself—or better yet, just don't pick up from unknown numbers at all. Instead, wait until they've left a message and then Google the number to see if it's legit.

Using SMS for two-factor authentication

"Using SMS as two-factor authentication is not recommended," says Rodriguez. Why? Well, according to the tech expert, SMS—the technology used for text messages—is relatively easy to hack. So it's always safer to use a more secure app like Google Authenticator or Authy, than merely having potentially-sensitive information sent via text.

Not picking up your mail regularly

Opening someone else's letter might be a crime, but that's not stopping scammers from doing it anyway. Correspondence from your bank, credit card company or the IRS could have everything from account numbers to your social security number on it, making it easy for scammers to steal your identity.

Responding to suspicious sweepstakes

That pop-up message claiming that you just won a free cruise to the Bahamas is almost certainly a ploy by a scammer to get money and information out of you. According to the FTC, you can usually tell whether a sweepstake is a scam when you have to pay to enter or deposit the check you've won and then wire some of the money back.

Throwing private information in the trash

Scammers often obtain your personal data "through discarded personal documents such as utility bills, insurance renewals, or health care records," the ACCC warns. Before discarding sensitive documents, first run them through a shredder. If you don't have one, make sure to rip and destroy all of your papers until the information on them is no longer legible, or get a text-obscuring rolling stamp to cover it up.

The top scams to avoid

Everyone is vulnerable to scams, so everyone needs information about how to identify and avoid being scammed. Some people think that only the gullible and greedy fall victim to scams. The truth is scammers are intelligent, and if you don’t know what to look out for, anyone can fall victim to a scam.

Have you received an offer that seems too good to be true, perhaps a phone call to help fix your computer or a threat to pay the money you do not owe, an alert from your bank or telecommunications provider about a problem with your account or even an invitation to ‘befriend’ or connect online? Scammers know how to press your buttons to get what they want.

They are getting smarter, moving with the times to take advantage of new technology, new products or services and major events to create believable stories that will convince you to part with your money or personal details.

However, thanks to the tens of thousands of scam reports received every year, the ACCC has prepared a list of common scams to reveal

Threat and penalty scams

If a government authority or trusted company is telling you to pay up, stop, think and double-check.

How the scam works

Instead of offering a prize, money or rebate, these scams use threats designed to frighten you into handing over your money. The scammer may call you and threaten you with arrest or send you an email claiming you owe money for a speeding fine, a tax office debt or an unpaid bill.

During the phone call, scammers will pressure you into paying immediately and tell you the police will be sent to your house if you refuse. Scammers have been known to target vulnerable people in our community, such as newly arrived migrants. They pretend to be Immigration Department officials and threaten victims with deportation unless fees are paid to correct errors in their visas. A very similar scam involves the scammer pretending to be from the Australian Tax Office telling their victims they have an outstanding tax bill.

Scammers also pretend to be trusted companies such as your bank, gas, electricity, water or phone provider. They will threaten to cancel your service or charge you excessive penalty fees if you don’t pay the bill immediately. Sometimes they may impersonate a business like Australia Post stating you have an item to pick up or you will be charged a holding fee every day you don’t pay. Whatever the case, they try to make you worried and act without stopping to think and check that the story is true.

If the scam is sent by email, it is likely to include an attachment or link to a fake website where you will be asked to download proof of the ‘bill’, ‘fine’ or ‘delivery details’. Opening the attachment or downloading the file will result in infecting your computer with malware (see page 16).

Protect yourself

• Don’t be pressured by a threatening caller. Stop, think and check whether their story is true. • A government agency or trusted company will never ask you to pay by unusual methods such as by gift card, wire transfers or Bitcoins. • Verify the identity of the contact by calling the relevant organisation directly—find them through an independent source such as a phone book, past bill or online search. • Do not use the contact details provided in emails or given to you during phone calls. Again, find them through an independent source.

Unexpected money scams

If you are asked to provide payments before receiving goods or money, think twice.

How the scam works

Scammers tell you out of the blue that you are entitled to money, precious gems, gold or valuable shares, but you need to make upfront payments to get them. You will never receive what was promised, and there will always be an excuse for why you have to pay more. If you pay the fees, you will lose your money.

Rebate or reclaim scams involve a scammer telling you that you are owed money for reasons such as overpaid taxes, bank fees or some sort of compensation. However, before you can get your money, you are asked to pay a small administration fee.

With inheritance scams, scammers pose as lawyers, bankers or foreign officials and tell you that you are entitled to a large inheritance or offer you a share in a scheme because you have the same name as someone who died. They often use official-looking documents and ask you to make payments for fees and taxes before you can receive the inheritance. They can also ask for your personal details to fill out ‘official paperwork’. This means that you might have your identity stolen as well as your money.

Commonly called Nigerian scams may have originated in West Africa but can come from anywhere in the world. They involve scammers telling you they need your help to secure a vast fortune which they are desperately trying to transfer out of their country. They may claim the estate is a hidden stash of money, gold or assets abandoned by a corrupt government or official and if you agree to receive it, they will give you a large share when it is safe to do so. Like all of these scams, they will say you first need to pay taxes, bank charges or fees for anti-terrorism and money laundering checks before they can send the money.

These scams commonly come from overseas and ask for payment via wire transfer but may also ask for bank transfers or other payment methods.

If you fall for these scams, you will never receive anything from the scammer and lose any money you sent.

Protect yourself

• Remember there are no get-rich-quick schemes: if it sounds too good to be true, it probably is. • Avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer, international funds transfer, pre-loaded card or electronic currency. It is rare to recover money sent this way. • If an unsolicited email looks suspicious, just delete it. Don’t click on any links. • Government departments, banks or utilities will never contact you asking you to pay money upfront to claim a fee or rebate. • If you are unsure, check the identity of the contact independently.

Do not use the contact details provided in the message sent to you—get correct contact details through an independent source such as a phone book or online search. • Conduct a search online using the exact wording of the offer— many scams can be identified this way.

Prize and lottery scams

Don’t be lured by a surprise win— only the scammer takes home a windfall.

How the scam works

These scams try to trick you into giving money upfront or your personal details to receive a prize from a lottery, sweepstake or competition that you never entered. Scammers claim that you need to pay fees or taxes before your ‘winnings’ or reward can be released. You may also have to call or send a text to a premium rate phone number to claim your prize.

Scratchie scams involve getting mail containing glossy brochures and several scratchie cards, one of which will be a winner. To make it more believable, it will often be a second or third prize. When you call to claim your prize, the scammers will ask for fees or taxes to be paid before you can get your winnings.

Lottery scams may use the names of real overseas lotteries to claim that you’ve won cash, even though you never entered into them.

Scammers typically ask for fees or taxes to release the funds. They will also tell you they need your personal details to prove you are the correct winner but then use this information to steal your identity or money from your bank account.

Fake vouchers and gift cards involve scammers sending you an email or text message or a social media message claiming you have won a gift card for a well-known retailer, but you need to provide some details before you can claim it. This is an attempt to get personal information which can be used for identity theft or to target you with another scam. Offers like these have also been known to deliver ransomware on your device.

Travel prize scams involve scammers claiming you’ve won a free holiday or airfares. In fact, what you’ve actually won is the chance to buy accommodation or flight vouchers. These travel vouchers often have hidden fees and conditions or maybe fake and worthless.

Similarly, scammers may offer you amazing discounted holiday packages that just don’t exist.

Protect yourself

• Remember: you cannot win money in a lottery or competition unless you entered. • Contests and lotteries do not require you to pay a fee to collect winnings—conduct a search online using the exact wording of the offer. It may help confirm that it’s a scam. • Think twice before calling or text messaging a phone number starting with ‘19’—they are charged at premium rates.

Job and employment scams

Significant income—guaranteed? Unlikely!

How the scam works

Job and employment scams involve offers to work from home or set up and invest in a ‘business opportunity’. Scammers promise a job, high salary or substantial investment return following initial upfront payments. These payments may be for a ‘business plan’, training course, software, uniforms, security clearance, taxes or fees. If you pay the fee, you may not receive anything or not what you expected or were promised.

Some job offers may be a cover for illegal money laundering activities, where you are asked to act as an ‘accounts manager’ or ‘personal assistant’, receive payments into your bank account for a commission, and then pass the money on to a foreign company.

Job scams are often promoted through spam email or advertisements in well-known classifieds and on job seeker websites—even government job seeker websites.

A significant danger with these job scams is that you can be asked for a lot of personal details that you should not provide including your tax file number and copies of your passport or driver’s licence.

This information could be used later for identity theft.

Protect yourself

• Beware of offers or schemes claiming to guarantee income or requiring payment upfront. • Never agree to transfer money for someone else—this is money laundering, and it is illegal. • Do not provide your tax file number, driver’s licence or passport when applying for a job. You may need to provide this information but only after you have started work.

Money laundering is a criminal offence: do not agree to transfer money for a stranger.

Charity and medical scams

Scammers are heartless and can strike during desperate times of need.

How the scam works

Scammers take advantage of people seeking to donate to a good cause or find an answer to a health problem.

Charity scams involve scammers collecting money by pretending to work for a legitimate cause or charity, or a fictitious one they have created. Often scammers will exploit a recent natural disaster or crisis that has been in the news.

These scams divert much-needed donations away from legitimate charities. Charities must be registered with the government—donate confidently by checking their registration first.

Miracle cure scams offer a range of products and services that can appear to be legitimate alternative medicines, usually promising quick and effective remedies for severe medical conditions. The treatments are often promoted using false testimonies from people who have been ‘cured’.

Weight loss scams promise dramatic weight loss with little or no effort. This type of fraud may involve an unusual or restrictive diet, revolutionary exercise, a ‘fat-busting’ device, breakthrough pills, patches or creams. You may be required to make a significant advance payment or enter into a long-term contract to receive ongoing supplies.

Fake online pharmacies offer counterfeit drugs and medicine at low prices and sometimes provide them without a doctor’s prescription. These drugs may have limited or no active ingredients, which can have lethal consequences for users.

Protect yourself

• If you are approached by a charity street collector, ask to see their identification. If you have any doubts about who they are, do not pay. • Check the Australian Charities Not for Profit Association’s list of registered charities. • Consult your healthcare professional if you are considering a ‘miracle’ or ‘instant-fix’ claim about medicines, supplements or other treatments. • Ask yourself: if this really is a miracle cure, wouldn’t your healthcare professional have told you about it?

Business scams

Scammers take advantage of the busy nature of many businesses to swindle them.

How the scam works

Scams targeting businesses come in all sorts of guises and are likely to strike at the busiest times, like the end of the financial year.

A false billing scam is the most common trick scammers use against businesses. Scammers issue fake bills for unwanted or unauthorised listings, advertisements, products or services. The business directory scam is a well-known example, where you receive a bill for a listing in a supposedly well-known directory. Scammers trick you into signing up by disguising the offer as an outstanding invoice or a free listing, but with a hidden subscription agreement in the fine print.

The domain name scam is another ploy used by scammers, where you are deceived into signing up for an unsolicited internet domain registration very similar to your own. You may also receive a fake renewal notice for your actual domain name and pay without realising.

An office supply scam involves you receiving and being charged for products that you did not order. These scams often involve products or services that you regularly order, such as stationery and cleaning supplies. Scammers typically call your business pretending that a service or product has already been ordered.

Payment redirection scams involve a scammer using information they have obtained by hacking your computer systems. They then pose as one of your regular suppliers and tell you that their banking details have changed. They may tell you they have recently changed banks and may use copied letterhead and branding to convince you they are legitimate. They will provide you with a new bank account number and ask that all future payments are processed accordingly.

The scam is often only detected when your regular supplier asks why they have not been paid.

Ransomware can be extremely damaging for any business. The best defence is to back up your data regularly and store your backups offsite and offline. 

Protect yourself

• Don’t agree to offers or deals straight away—always ask for an offer in writing and seek independent advice if the agreement involves money, time or a long-term commitment. • Never provide your business’ banking, financial and accounting details to someone that contacts you unexpectedly and that you don’t know and trust. • Effective management procedures can go a long way towards preventing scams—have clearly defined processes for verifying and paying accounts and invoices and look very carefully at requests to change banking details. • Train your staff to recognise scams. • Back up your business data offsite and offline. • Beware of emails requesting changes to payment details. Always verify changes to payment details directly with the business or individual.

How scams work—the anatomy of a scam

Most scams follow the same pattern, and once you understand this, the tricks of the scammer become easier to spot.

If you look carefully at all of the different types of scams outlined in this book, you’ll soon notice that most scams go through three stages: (1) approach; (2) communication; and (3) payment.

Understanding the essential parts of a scam will help you to avoid the current crop of scams and to be on guard against new scams that emerge in the future.

  1. The approach: delivery method

When scammers approach you, it will always come with a story designed to make you believe a lie. The scammer will pretend to be something they are not, a government official, an expert investor, a lottery official or even a romantic admirer.

Scams - Part 2


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