Beware of Online Scams
Scams are increasing in number and sophistication. They appear in many forms from dating and romance scams, investment scams, upfront money scams, phishing, online auction scams, computer hacking scams, unsolicited computer service calls, mobile menaces, and more.
Scammers often send emails pretending to be from a bank or a trusted organisation. These emails try to trick the recipient into giving their personal details. A common ploy is claiming their account has been compromised and they direct the recipient to a fake, but official-looking website to “fix” the user’s login details. In reality, the account in question is fine, and the website is recording login details for the scammers to use later. If you receive a call saying your computer system has a virus, hang up immediately. Microsoft will never call you without you having first contacted them.
Phishing
Phishing is one of the most common types of scams. The name refers to the scammers “phishing” (fishing) for victims by sending official-looking emails. When a recipient clicks on a link in the email or replies, they can unwittingly provide the scammers with access to the user’s personal information. Scammers are increasingly using social media sites to spread malware and phish for information. NEVER Click on any links in the email, forward or reply to suspicious messages. If your email account has a “Report spam” or “Report phishing” feature, report them. This also blocks future emails from that sender. Immediately delete the email and block the email address.
Trading Scams
Online trading scams target people selling items via auction. The scammer pretends to be interested in the auctioned item as a present for someone else and they will wire payment via PayPal. The seller receives an email purportedly from PayPal saying the money has been paid. The payment also includes a little extra for shipping costs. To finalise the trade, the scammer asks the seller to forward this extra money to a “shipping company”. Unwittingly, the seller forwards money directly to the scammer (who promptly disappears). The original payment never materialises, and it turns out the email from PayPal is fake.
Mail order can be a great way to buy, and there are many legitimate companies using this selling approach. However, there are also lots of mail order scams and rip-offs. Fake gift cards and survey scams account for more than half of all social media attacks. Typically, scammers post an advertisement on a social media site that reads “Click here for a $100 gift card”. Users are then duped into handing over personal details in exchange for a non-existent voucher.
And there’s more
Other common scam types include Employment scams. These can turn up anywhere from a newspaper’s situations vacant pages to your email inbox. They offer the chance to work from home at your own pace – and still make loads of cash. These scams usually have you sending money to a PO Box or forwarding your credit card details in advance.
Rent scams focus on websites listing houses and rooms for rent. Scammers pretend to be interested in a room, and they send an overpayment of rent in advance and ask for a partial refund. But after you send the refund, you find the cheque they paid has bounced. Sometimes it is the scammer offering a place to rent and you are asked to pay upfront before you have seen the room. If this happens, report it to the website owner.
Boiler Room Brokers call you with the promise of huge returns if you buy “one-off” shares. But the shares don’t exist or are worthless. These scams can feature slick sales pitches backed up by professional looking websites and certificates. If you fall for the pitch, you may get a call from another broker offering to buy the shares in exchange for a small transaction fee. This “recovery room” scam results in your transaction fee also being pilfered.
Facebook “for sale” groups allow vendors to advertise and sell goods via posts on their Facebook page. But as these profiles are easy to set up and abandon, you may find it difficult to track down a seller if the transaction goes awry. People have bought goods on Facebook, but the goods never materialise. Alternatively, counterfeit goods are shipped instead of genuine items.
Staying Safe
Be wary of overseas traders if you are buying or selling goods through an online auction. Avoid sellers or buyers who want you to wire money through a service like Western Union. It is difficult to cancel payment once money has been transferred.
Reputable auction sites have systems to spot scams. When selling or buying on an auction website, do not go outside the site to complete the trade.
Never click on unusual links in emails or social media messages – even if the message comes from a friend. Scammers spread malware by sending links to the contact list of a compromised account.
Do not click on any online advert if you are unsure of its validity. If you are really interested in the advert, Google it first.
Regularly download the latest security patches for your internet browser and operating system – and keep your antivirus software up to date.
Before buying any vouchers check out the company that sells them. It also pays to check whether organisations at the other end will accept the vouchers.
Look for a written, money-back guarantee if you are not happy for any reason.
Never buy from a company that just gives a PO Box number. Ensure the company provides a physical (street) address, contact phone number or GST registration number.
Trade via a New Zealand-based company; you involve the Disputes Tribunal if you have problems with a product or service.
Look for a company that is a member of an official, recognised Marketing Association. Members are required to meet the association’s code of ethics and follow its recommendations.
For overseas companies, it is advisable to stick with large and well-established firms.
Never reply to any email or phone request asking you to confirm your bank or credit card details. Legitimate organisations will never ask you to do this.
Research the firms you are dealing with. Use the Companies Register to see if the company exists and who is behind it.
Do not be swayed by cold-callers promising bargain deals or instant riches if you sign up.
What to Do If You Are Concerned
If you are scammed, report to NetSafe immediately. NetSafe will advise you of the best course of action or redirect your complaint to one of its partner organisations – for instance, the Commerce Commission, Consumer Protection or the New Zealand Police.
In addition, you can report spam messages (unsolicited commercial emails and texts) from New Zealand businesses to the Department of Internal Affairs. The Department’s anti-spam compliance unit can investigate spam messages and penalise the sender.
If you have been cold-called or emailed by scammers disguised as a legitimate organisation report the scam to the genuine organisation so it can take measures to protect itself and its clients.
If you have been scammed, act quickly. You should stop communication immediately, and confide in a friend or family member who can support you. Being the victim of a scam is scary and upsetting but talking about it can help.
If you have handed over your bank details, contact your bank and suspend your account immediately. Fraudulent credit-card transactions can sometimes be reversed. It is safer to pay by credit card than bank transfer when you are shopping online.
If you think the scam is being run within New Zealand, report it to the police. You can also report a scam to Consumer Protection, which can post a warning on its site.
If you suspect you have been a victim of identity theft, contact the police. If the scammer has a specific piece of ID, such as your driver’s licence or passport, contact the department responsible for issuing the document. It is also a good idea to get a credit check done by a credit-reporting agency.
For more information contact:
Consumer Protection www.consumerprotection.govt.nz
Commerce Commission www.comcom.govt.nz/fair-trading/scams-and-alerts/