spot a scam - Consumer and Business Services - SA.gov.au

Lucky winneror gullible victim?Ever opened your mail and found you've unexpectedly won acompetition, lottery or other exciting prize? In some cases this mailmay be genuine, but often it is a scam to get you to part with yourmoney.Letters from scam operators are often personally addressed to youor your business. Most scams originate and operate from outsideSouth Australia, and the majority are from overseas.Ways to spot a scamDeceptive promotional material• documents may look "official" or genuine (eg companyletterheads, certificates, logos)• it states the scheme is legal - this usually means it isnot• it has been checked and approved by some bogus orunnamed Government Authority• you must respond or buy quickly otherwise the'opportunity will be lost'Have you heard these "too good to be true" claims before?• you have "won" a lottery or competition that you havenever entered• this is a 'big money earner' with 'no risk'• mystical or religious groups will solve your money orhealth problems if you send a donation• an unknown "millionaire" wishes to share their secretsof success with you• earn big dollars through commissions by introducingothers into a schemeIt is easy for scam operators to take your money and runif you simply send them cash or a cheque or if you handover your financial details (eg. bank account)Do not hand over your money or financial/personal details if:• you have to send money before you can receive your prize, or• you must reply to a post office box number or to aninternational address, or• an overseas organisation needs to deposit money into your bankaccount so that another important business transaction can takeplace.How scams operateScam operators:• conceal their identity bycreating false business andpersonal names, use postbox numbers or temporaryaddresses• often operate outside theirown state or country toreduce the risk of beingcaught• appeal to people's needs andthe desire to be wealthy,healthy, attractive or safe• hope that a smallpercentage of people from alarge mail distribution listwill take the bait and sendmoney• compile a "sucker list" ofthose who have respondedto bogus offers and then sellthe list to other scamoperators• regularly change the nameof the scheme and vary theclaims made.Some sensibleadvice• be wary about giving detailsof your credit card, bankaccount or personalinformation (eg. passport ordriver's licence)• be wary about sendingmoney to a post office boxnumber or to an overseasaddress• if it sounds too good to betrue, it probably is• do business with companiesyou know and trust• report any suspected scamsto Consumer AffairsAUTHENTICTHIS IS

InternationalAuthority of scamsFinal Attempt To NotifyB Scam Smart13 Beat the Cheats AveSmartville 3390What should you do if you think it's a scam?Be scam smartContact Consumer Affairs before responding to any offer.This may help prevent you and others from being ripped offby scam operators.Ph: 8204 9777Country callers: 131 882www.ocba.sa.gov.auTypical scamsNigerian LetterA Nigerian business orgovernment official will spin ayarn saying that they need totransfer funds from Nigeria toAustralia. They request yourhelp, and so if you allow themto transfer the funds into youraccount you will be rewardedwith a share of the milliondollar bonanza. Never sendmoney to cover the costs forthe processing fee as you maynever see your money again.Do not send your bank accountdetails either as you will findyour account totally cleanedout within days. Similar lettersare sent about funds in otherAfrican nations.Overseas lotteriesWhatever claims the promotermay make about the lottery,overseas lotteries are illegal inAustralia. They claim that thechances of winning are greaterwith overseas lotteries, butthey take your money withouteven buying tickets for thelottery.Unexpected windfallYou receive a letter telling youthat you've won a prize whichcan only be claimed if you paya "processing fee". You shouldnot have to pay for somethingthat you have won, otherwiseyou are either buying theproduct (usually a cheapimitation of what is offered) orthe scam operator simply takesyour money and you neverhear from them again.