Scams and frauds
Counterfeit cards and Skimming
Card Skimming is the fraudulent copying of the information contained in the magnetic stripe on the back of your VISA or redicard. Once the information as been copied it can be used to create a counterfeit card that contains your details.
Card Skimming can occur at either an ATM or an EFTPOS terminal.
An ATM skimming device is often smaller than a standard pack of cards and is fastened close to or over the top of the ATM’s factory-installed card reader. It is generally used in conjunction with a pinhole camera device that captures your PIN number when you type it in to the keypad. In some cases, the keypad can also be compromised by keypad overlays which record the key strokes of your PIN.
EFTPOS Skimming has often occurred in taxis and at restaurants – situations where you handover your card to someone else to swipe. You need to ensure that you are able to perform the swipe yourself, or keep the card in sight at all times.
To protect your card against Skimming whenever you are using an EFTPOS or ATM terminal:
- Make sure you can always see your Card
- Cover your PIN
- Only swipe the Card once
Refer to ‘What you can do to protect yourself’ for more useful tips on safe and secure banking.
Lotteries
Lottery scams involve a letter or email advising the recipient that they have been fortunate enough to win a major lottery prize. To claim this prize the recipient will need to provide either their banking/personal details, or send funds to the lottery organisers to cover administration costs. The letter or email will often specifically state that the lottery is legal and/or has government approval.
If you receive a letter or email advising you that you have won a lottery prize there are a number of things you need to consider:
You cannot win a prize in a lottery prize unless you’ve entered the lottery yourself, or someone has entered on your behalf. Without an entry you cannot be chosen as a random winner.
A legitimate lottery does not need you to send money for fees and costs or require you to provide your personal banking details.
For most legitimate lotteries, such as Spanish lotteries or UK Lotto, tickets must be purchased in that country.
What can happen
Any money you send in response to the letter or email will be lost, with absolutely no chance of recovery.
Any personal/banking information you send can potentially be used to access your accounts or to misuse your identity.
Money Transfer Requests
Scams related to money transfer requests are one of the most common scams affecting Australians. You need to be very careful if someone offers you money to help them transfer funds. Some of the more common money transfer scams are outlined below;
Advance Fee Fraud
Many of these sorts of scams originally started in Nigeria and as such are often referred to as ‘Nigerian Scams’. However, similar scams have been started by scammers all over the world and are increasingly referred to as ‘Advance Fee Fraud’.
You receive an email or letter from a scammer claiming to be a trustworthy person such as a solicitor or other professional. The person claims to have access to a large sum of money due to be seized by the government and they are asking for your help to transfer the money overseas. It also claims that you are offered a share of the money if you will provide your Bank Account details to help with the transfer. You will also need to pay all kinds of fees and taxes before you can receive your ‘share’ of the money.
Inheritance Fraud
As with Advance Fee Fraud you receive a letter from someone claiming to be a trustworthy person. However this letter states that a wealthy, previously unknown, relative of yours has died and has left you a huge inheritance. They ask you to provide personal documents and bank account details to prove that you’re entitled to the funds. Often they will also request that you send money to cover and fees or costs of processing the payment.
Overpayment Fraud
Overpayment scams target people selling goods over the internet (including online auction sites) and through the newspaper. In response to your advertisement you receive a generous offer from a buyer which you accept. You receive payment from the buyer by cheque or money order however they have paid you more than the agreed sale price. When you contact the buyer they tell you that they have overpaid you by mistake and then ask you to return the excess money to them via a bank transfer. The scammer is hoping that you will complete this transfer before the cheque they sent you bounces or you discover the money order is fake.
What may happen
If you provide any of the money they ask for you will lose it with no chance of recovery.
Any personal/banking information you send can potentially be used to access your accounts or to misuse your identity.
Employment Scams
Although there are some genuine work from home jobs, there are also scams which are disguised as genuine part time employment. These scam jobs are often promoted through spam emails or on notice boards and can be fronts for illegal money laundering activity or pyramid schemes.
Supposedly genuine overseas companies try to recruit people to act as their agents within Australia. Because the “work” is part time, high skills are not required, but the participant must have internet access and be able to provide either a Bank Account number.
The job requires to the ‘employee’ to accept funds into their bank account and to then pass on these funds in accordance with instructions provided by the ‘employer’. These instructions will require the bulk of the funds to be transferred overseas via an instant cash service (i.e. Western Union or Moneygram) and a small amount will be retained by the ‘employee’ as commission.
What’s actually happening
Funds stolen via Internet Banking from other people are transferred into the ‘employee’s’ account.
By participating in these schemes, you are actually involved in Money Laundering through handling and forwarding money which has been obtained by unlawful means. Money Laundering is a federal offence.
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