Australians have lost $300 million last year to scams as scammers preying on them are increasingly turning to social media.
According to the Australian Competition and Consumer Commission’s latest report, it received 200,000 reports of scams during 2016 which was 47 per cent more than the previous years.
The ACCC says the scammers were increasingly using social media to target people with dating and romance scam which alone cost Australia $42 million, second only to investment scam which saw Australians lost $59 million last years.
Deputy chair Delia Rickard says around 30 per cent of dating and romance scam victims were contacted via social media sites, particularly Facebook.
“Dating and romance scammers trick their victims into falling in love with them and then use their victim’s trust to deceitfully take their money,” Ms Rickard said.
“If someone you’ve met through social media but you’ve never met in person asks you for money, your alarm bells should be ringing. Don’t ever wire transfer or send money to someone you don’t know because you won’t see it again.”
"Wherever you see an offer that seems more generous than normal, do your research on the company, where the product is coming from, check the company’s website and try and find any reviews about the business before making a purchase."
Ms Rickard says fake trader scams selling non-existent products are also on the rise.
“Wherever you see an offer that seems more generous than normal, do your research on the company, where the product is coming from, check the company’s website and try and find any reviews about the business before making a purchase. Only pay using secure payment methods such as Paypal or a credit card,” Ms Rickard said.
Ms Rickard said the majority of reports to Scamwatch about scams via social media were taking place on Facebook.
She says the ACCC is working with the company as well as major banks and companies such as Paypal and the Western Union to tackle scams.
