Online scams

Reporter: Clare Brady
Broadcast Date: October 15, 2009

When it comes to online scams it seems no one is immune. About 5.8 million Australians were exposed to a scam in the past year - that's about a third of the population.

It's a billion dollar racket born in one of the poorest countries in the world and now the Rudd Government is rolling up its sleeves, trying to protect the innocent from loosing the lot.

Money stories

One woman was too embarrassed to show her face after she fell for an elaborate scam with links to Nigeria. The promise of love peppered with lies and excuses has not only broken he trust, but also her savings.

"I'm really down on myself that I would be caught up in it because its just something I've never done before. I ended up losing $30,000 and I am a single mum, so that to me is a lot to lose," she said.

New, snappy, enticing scams emerge every month. The latest seem odd, but still reap in the dollars. Like the Patrick Swayze or Michael Jackson scams where spam emails are inked to viruses and spyware, cleverly embedded in the artists' songs, videos and pictures.

Top of the list is the fake job offer or inheritance scams. The dating and romance scams involving fake profiles on matchmaking websites are even more popular.

The Australian Institute of Criminology is so concerned about the increase in scams, it commissioned a report based on a survey of almost 1000 people.

The results were staggering. About nine in ten Australians have been targets of scams and up to 18% had fallen prey to the online shysters.

Federal Consumer Affairs Minister, Craig Emerson: "The common features of scams is they want you to send cash or credit card details."

Mr. Emerson says even his Government Department is bombarded by scams every day.

The Rudd Government will pass a law by Christmas to fine corporations $1.1 million for peddling scams. But catching the mercurial tricksters will take a lot more than that.

The success rate of a scam relies heavily on how believable it appears - it targets its market, usually the retired, and hones in on greed to get an eager response.

"I think one of the most insidious, scary ones is the Tax Office reportedly offering a refund. 'You're entitled to a refund of $240 send credit card details'. Don't send credit card details, it's not the Tax Office, it's a scam," Mr. Emerson said.

One of the saddest scam victim stories must be that of the late Elsie Carland. Right up until the day she died, the pensioner received thousands of letters promising her she'd be wealthy beyond her wildest dreams. Elsie believed every false cheque, every false promise, religiously sending money til the day she died. Her daughters Raelene and Gayle had no idea she was sending so much money.

The scams originated in Canada and of course again, Nigeria.

"My advice is never send cash, never send credit card details. If it sounds too good to be true, it is too good to be true," Mr. Emerson said.