Nearly $1 billion dollars of Australians hard earned cash lost to personal fraud states the ABS report (1)

The Chair of the Australasian Consumer Fraud Taskforce, Ms Louise Sylvan said, the results of the ABS survey results on Personal Fraud showed how clearly consumer fraud has become a major concern with nearly one billion dollars ($980 million) lost as a result of personal fraud according to the first National Personal Fraud Survey, by the Australian Bureau of Statistics ABS.(2)

This survey, commissioned by the Taskforce, is the first occasion in Australia where we have had absolutely reliable statistics about the extent to which Australians are exposed and are victims to scams and frauds, including identity theft.

The ABS in 2007 conducted a survey asking people aged 15 and over about their experiences relating to personal fraud incidents in the preceding 12 months. The survey found that 453,100 Australians lost on average $2,160 as a result of personal fraud.(2)

The ABS found that almost 6 million people are exposed to scams and frauds during any given year, with over 806,000 falling victim in some way. The financial losses are of major concern – with almost $1 billion in losses – a good part of which will go out of the Australian economy.

Other results from the survey include: (1)

• 806,000 Australians reported they were victims of at least one incident of personal fraud in the previous 12 months. This represented 5% of the population aged 15 years and over.
  
  
• Half a million Australians have experienced a form of identity fraud. The majority 383,300 (77%) were victims of credit or bank card fraud; identity theft accounted for the balance.
  
  
• Nearly 6 million Australians (36%) were exposed to a range of selected scams; that is they received, viewed and/or read an unsolicited invitation, request or notification designed to obtain personal information or money or obtain a financial benefit by deceptive means.
  
  
• 329,000 people fell victim to at least one type of scam by responding to or engaging with the unsolicited offer. The three main categories of selected scams were: lotteries (84,100 victims), pyramid schemes (70,900) and phishing and related scams (57,800).
  
  

"While the normal kind of frauds still persists, mass-marketed global fraud is a new phenomenon that consumer protection and police agencies have not encountered before historically.

"Mass-market frauds and scams represent a serious problem from the perspective of the private sector with 40 private sector businesses join the Taskforce each year in the co-ordinated campaign to help consumers avoid these scams and frauds.

Lotteries, pyramid schemes and phishing attacks are at the top the list of these scams (which also follows the general complaints data from consumers). "Given that so many of these criminal perpetrators are not easily in the reach of Australian enforcement agencies, consumers need to be more vigilant than ever," Ms Sylvan said.

"The key message for consumers is not to respond to 'out-of-the-blue too-good-to-be-true offers', keep up the protections on your computer, and keep credit cards in sight."(2)

There is nothing that can be done?

What I have posted is just one of the many ways Australian's are being caught up in scams. It is very frustrating to read that such scam falls outside the Australian Securities & Investments Commission's responsibilities.(4)

ASIC statement on its webpage state they can't take any action apart from warn people. They say scams cross many national boundaries, even responsible government agencies are limited in what can be done.?(4)

With the theft of well over "$1 Billion AU" reported stolen from trusting Australian's I find it amazing and totally horrifying the only thing be done after reporting a scam to the authorities is absolutely "NOTHING" but warn you.

When I reported to American Express I was to receive Travelers Cheques in the mail as payment they passed me onto their fraud agency here in Australia. I told them about what was about to happen. I was asked by a staff member to call back when the Cheques arrived.

The Cheques arrived I called back as requested spoke to man who said he had read all the emails I'd sent to the agency. I was however taken back when he became was somewhat rude towards my enthusiasm of wanting to try and catch this scamster. At this stage he did not know what I did for a living as I was calling as a potential victim.

He said and I quote: "reality is, no one is going to go to Nigeria or Africa to catch these guys, its far to dangerous".

I said, so the bad guys gets my money if they get lucky and I get the bill, if I'd been trusting or stupid enough to cash the cheques right, which I am not.

He went on to say. Quote: "we judge each case on its merits, not too many cheques get past the bank teller's. It's like you trying to present a piece of paper with American express written on it and expect the bank to give you the money, they're trained to spot these things".

Feeling rather insulted by his comment re "it's like you trying to present a piece of paper with American express written on it and expect the bank to give you the money" I replied, if this is the case then training's not working to well as a bank in Melbourne got caught out. I was informed this by the Bank of Queensland who I had asked to help me identify these Travelers Cheques. They contacted American Express while I waited. It was then they informed me a bank in Melbourne lost $3500 to this kind of scam this week.

At this point I felt it necessary to inform this man what I did for living. Our conversation ended but he requested I post my cheques to AEP fraud agency, I asked why. He said, "so we can post them off to the FBI in the US to be filed with the rest".

The Nigerian Email Spam Scam


The Nigerian Email Spam Scam part.2 - part.3 - part.4 - part.5 - part.6

I was sent Travelers Cheques as payment for a service.

Earlier in the week I talked with another person at the AEP agency a Mr.R. I asked how come we Australians haven't read anything about these Traveler's Cheque fraudsters working their fraud here in Australia.

He said and I Quote: "its not something the Travelers cheque providers wants widely known, as it might put people off accepting Travelers cheques as payment, it could damage the industry. Its not that big a problem here, only a small percentage manage to get them cashed".

This comment was somewhat disturbing as the Australasian Consumer Fraud Taskforce found that almost 6 million people are exposed to scams and frauds during any given year with an average $2500 being lost. When you add those figures up its not something that should be brushed under the carpet.

Whichever way you look at it. If you get caught in a scam it can create far bigger problems for you than the scamster as the banks have the upper hand in this fraud and will want their money back. Reality is, Travelers Cheque provider's go after their money they want it back one-way or another and from what I have researched most people who get caught are forced to pay up or be placed on the bad credit list. (read witness testimony bottom of this page).

Interestingly while researching this topic for Australia I found the word Cheque used quite often to describe various Cheque frauds here I not, find the words Travelers Cheque/s together nothing about Travelers Cheque fraud on any Australian Government web sites. One would have to wonder if what Mr.R said is correct.

So what is the difference between a Travelers Cheque & Personal/Bank Cheque?
A Bank Cheque - Personal Cheque must be deposited they are cleared within 3 working days, the funds are then made available. Travelers Cheque's are totally different they're like cash in hand. You can use them to pay for goods and services at shops, restaurants, and hotels. You can take them to the bank cash them the bank gives you cash there is no waiting.(6)

How does a scam start - I hope after reading this I've made you thinka little.
This is my story Diane I felt this experience important enough to share.

You advertise either in the local newspaper or on the internet via one of many free web sites. I used Gumtree.com a site I had used before to give some kitten's away. It worked well so I was confident in using the site gain. And to be fair to Gumtree.com they do warn you to be very careful of fraudsters as they take no responsibility, here is a link to Gumtree safety tips.

To be honest I started off trusting this person Elizabeth as she had given me no reason not to, in the begining. However alarm bells rang when an email arrived informing me she would pay by Travelers Cheques. I thought is this girl crazy dosen't she know what I do for a living I'd even signatured my emails with my web address attached, I went so far as to send her this email indicated I meant business.

But that did not deter her she kept playing the game. I came personally confronted and very angry when this scamster kept it up. Then the fake Travelers Cheques turned up in my Mail box. Even American Express thought by sending her the above email it would scare her off, but it did not. My anger turned into curiosity and curiosity turned into wanting to see just how far this girl was going to go and what journey this scam would take me on.

This is how the emails started, I found the emails sent to are a variation of a template sent to many potential victims of fraud

This is the name of my perpetrators Elizabeth please note of her email adderss.

They tell you they're coming over for an holiday from Africa and looking for a place to stay for a few months, sound familiar?

* Emails supplied by Diane as an example of how they tried to gain my trust.

Introductions begin, ground rules set but NO bartering this is strange.

Elizabeth starts the befriending scenario

* Emails supplied by Diane as an example of how they tried to gain my trust.

Then she asked for our mailing address so they can make a payment. They advised their company will pay via cheque.

Over the next view days I receive the occasional email filled with idle chatter, again these are befriending emails. These emails don't ask for money there only purpose is to try and gain your trust to give you a false impression of what the scamster's true intentions are.

* Emails supplied by Diane as an example of how they tried to gain my trust.

* Emails supplied by Diane as an example of how they tried to gain my trust.

She informed me she is going to send me Travelers Cheques for safety reasons, if the travelers’ cheques are lost or stolen en-route, American Express will replace them. This is meant to give me a false impression that she is ethical and a responsible person.

Now the CLINCHER
(a must read email)
I'm advised by the scamster there has been a very big mistake, her company sent all the Travelers Cheques to me and the value of the travelers cheques sent far exceed the amount required to pay bills $3000 US, I say wow that's just stupid.
(just hold that thought).

But wait there is more, read on.

* Emails supplied by Diane as an example of how they tried to gain my trust.

Now I'm to start to think "poor girl" what a mess her company has caused her by sending me the travellers cheques and I know she desperately needs the money to buy her airline ticket to get to Australia to start her holiday.

The scamster sends another email seeking more sympathy "I hope you understand the circumstance I find myself in.

(You should be smelling a rat by now)

Instructions arrive for cashing the Cheque's before the Cheque' arrived?.

* Emails supplied by Diane as an example of how they tried to gain my trust.

Still no Cheques 10.05.2009, the money transfer instructions arrive 3 days later.

* Emails supplied by Diane as an example of how they tried to gain my trust.

Travelers Cheques arrive: 13.05.2009 - Email sent to inform scamster - 7:54:14 PM

* Emails supplied by Diane as an example of how they tried to gain my trust.

From:xxxxxxx@bigpond.com>
Date: 13 May 2009 7:54:14 PM
To: Elizabeth Bell <elizabeth.bell11@gmail.com>
Subject: wow!! there here!! Re: Transfer Details

Hi Elizabeth

Wow!! finally your cheques have got here all 6 of them at $500 each? you said there was only going to be 3? never mind they're here that's all that matters.!!!! I was getting worried for you.

Australian Witness testimony

Sue A - Melbourne VIC trusted a man called Enrique Gad Jimenez Celis from the USA. He sent me some AAA Travelers Checks to the value of $4500US. l cashed them at my bank and a day later was informed that the checks were fraudulent and l am liable to over $5000AUS. This man goes by the name of Henry. So please anyone do not listen to this man. l was so naive to believe all his lies. l am on a pension raising a child and will be in debt for over 4 years thanks to him. He has stopped communicating with me, which came of no surprise. l have learnt an expensive lesson. (5)

Walter C - Melbourne VIC I advertised to rent a room out with Share Accommidation Australia and a lady called Andrea Schoeman replied to my add and sent me $3500.00 us in Viza Travelers cheques I was told to keep my Mths rent and send the ballance back to her in South Africa Via Money 3 all good firms to deal with, the only thing is the Travelers cheques were all Fraudulent and I had to pay back to the bank $4000.00 dollars of my own money. The Banks new of this happening but still cashed the cheques after me telling them where they came from, I think there should be gilt on the Banks for cashing these cheques its there Duty of care to there customers to look after us and stop all this from happening to other people. I am trying to take the bank to court next mth so lets see what happens. Thanks Walter (5)

The sad and sorry thing about it all, nobody is going to bother catching these scamsters and they know it.

Sites of interest: Fraud Aid

Referenced from:
1. Ref: Australia Bureau of Statistics
2. Australasian Consumer Fraud Taskforce
3. Ref: Media Note: Personal fraud included: credit or bank card fraud, identity theft (includes the unauthorised use of a person's personal details), and the following selected scams; lotteries, pyramid schemes, phishing and related scams, financial advice, chain letters and advance fee fraud.
4. Ref Australian Securities & Investments Commission
5. Manchester Forum
6. American Express