SCAMS

THE GOLDEN RULE OF SCAMS IF IT SOUNDS TOO GOOD TO BE TRUE IT PROBABLY IS!!

Scams are schemes and ventures that promise unrealistic opportunities to create wealth from investments, or to buy services at prices that are far below those you would expect to pay.

The people who operate and market scams are usually presented in a very professional and attractive manner.

Scams can be sold and circulated in a number of ways. Direct contact via door-to-door salespeople is common as well as telephone contacts, unsolicited mail or advertisements in newspapers and magazines. Increasingly, Get Rich Quick Scams are being circulated via the Internet.

 

STEPS IN PROTECTING YOURSELF AGAINST SCAMS

You can avoid being caught in a scam by observing some or all of the following advice:

• ask the name of the person you are speaking to, who they represent, obtain ABNs, addresses, contact numbers and keep notes of conversations;

• ask for explanations of things you do not understand;

• seek professional help in understanding the offer and terms and conditions of the venture;

• check the bona fides of a company with the Australian Securities and Investments Commission;

• make any decisions carefully and take the time you need - do not be rushed by high-pressure salespeople and short deadlines;

• do not judge the venture by the professional appearance of promotional material - the basis of many scams is the seemingly high quality of personnel and material;

• do not provide any financial or personal information before you establish whether the company is legitimate;

• ask questions - even if the venture is legitimate, the more questions you ask the better;

• if you encounter a problem, do not let embarrassment or fear keep you from reporting fraud or abuse to the appropriate authorities;

• be cautious of 1900 and 0055 telephone number scams. These calls are often very expensive; and

• be wary of free travel and accommodation deals. They are often loaded with terms and conditions that erode any advertised savings.
  

.Remember - if it sounds too good to be true it probably is!

Click here for Media Releases relating to scams

Further information can be obtained by logging on to www.scamwatch.gov.au or check out The Little Black Book of Scams.

The Australian Competition and Consumer Commission (ACCC) also provides excellent information on its website.