Targeting scams Report of the accc on scam activity 2012

7 Conclusions and future challenges

While the ACCC undertakes considerable efforts to educate and empower consumers, such as through the SCAMwatch website, the importance of raising community awareness about the need to remain vigilant against scams activity will always remain a high priority. With over $93 million reported lost to scams in 2012, as well as the unquantifiable and devastating non-financial costs experienced by many victims, it is crucial that Australian consumers and businesses are able to identify scams and avoid victimisation in the first instance.

In addition to helping the individual, the ACCC also recognises the importance of working with industry, other regulators, and local and international law enforcement agencies to disrupt scams. Building upon its successful collaboration with the online dating and romance industry in 2012, the ACCC will continue to work with key industries where consumer detriment arises. In line with the fact that more Australians are shopping online and scam reports continue to increase, in 2013 the ACCC will focus its efforts on the online retail industry. The ACCC will also continue to work with members and partners of the Australasian Consumer Fraud Taskforce to deliver a coordinated response to scams in Australia and New Zealand.

Where possible the ACCC will take enforcement action against the perpetrators of scams. In 2012 the ACCC took successful court action against individuals involved in the TVI Express pyramid selling scheme, and against traders falsely signing up small businesses to advertising services. It also provided assistance to the Essex Police in its case against a global scam that saw some defendants sentenced and an Australian victim awarded compensation. These efforts show that scammers cannot always evade prosecution.

The scams landscape will continue to evolve in line with developments in technology and how communication channels are used. For many Australians, mobile technology, smart phone devices, connecting with family and friends online, and shopping or banking over the internet is now a daily part of life. It is therefore unsurprising that in 2012 the ACCC saw an increase in reports and associated losses of scams sent via mobile phones as a way of delivering scams direct to people’s pockets.

At the same time scammers are also increasingly sophisticated in their operations, using professional business models such as call centres, virtual offices, sophisticated or mirror websites and even their own version of clients lists—‘victims lists’—to dupe people. Scams are also now regularly committed overseas and on a global scale, with the potential to reach millions of potential victims at the click of a button.

The speed in which developments in technology and communications occur, and the modus operandi used by scammers, presents considerable challenges to law enforcement agencies. The ACCC and international law enforcement agencies will continue in their efforts to stay one step ahead of scammers.

Appendix 1: Scam categories by state and territory

Where possible the ACCC collects data about the geographic location of people reporting scams. Appendix 1 provides a breakdown of 2012 scam categories by state and territory.

Overall New South Wales saw the greatest amount of scam reports (23.5 per cent), followed by Queensland (21 per cent), Victoria (18 per cent) and South Australia (12.5 per cent). Contacts received from the remaining state and territories were below 10 per cent.

The ACCC also received reports from overseas, with 8 per cent of total contacts identified as originating from individuals based outside Australia.

New South Wales