Invest
Race that stops the nation doesn’t stop the scammers
The Melbourne Cup is one of the biggest days on the Australian calendar but punters should be aware of sports and investment scams they may be the target of.
Race that stops the nation doesn’t stop the scammers
The Melbourne Cup is one of the biggest days on the Australian calendar but punters should be aware of sports and investment scams they may be the target of.
According to the Australian Competition and Consumer Commission’s (ACCC) Scamwatch, nearly $1.6 million has been lost to betting and sports investment scams this year already. Men are “overwhelmingly” likely to be victims, sending in three out of every four reports the ACCC receives.
Minister for small business, Michael McCormack said those considering a flutter should watch out for scams that falsely promise high odds.
“Do not believe anyone who says they have foolproof systems that can ‘guarantee’ a profit through betting. If someone can accurately predict gambling results, why would they need to sell it to you to make money?” Mr McCormack said.
“Scammers use fancy brochures and technical terms to try to convince you their ‘opportunity’ is legitimate. If you are contacted by someone trying to sell you ‘investment opportunity’ or ‘prediction software’, hang up the phone, delete the email or toss the glossy brochure in the bin.”
The ACCC identified three dominant forms of sports betting and investment scams:
1. Computer prediction software. Scammers may try to sell software that promises to “accurately predict sporting results”.
2. Betting syndicates. In this instance, scammers will attempt to convince people to join a betting syndicate at a large fee. This fee will often be in excess of $15,000 and people are also required to make frequent deposits.
“The scammers say the funds are being used to place bets on behalf of the syndicate but in reality the scammer is pocketing all the funds,” the ACCC said.
3. Sports investment. According to the commission, this particular scam is “nothing more than a con to get people to put money into an investment that does not exist”. The scam is often presented as a business or investment opportunity and the scammer will use terms like “sports arbitrage” or “sports trading” to give the schemes a legitimate appearance.
Commenting on the scams, Mr McCormack said: “Unfortunately, sports investment scams are very successful with half of the reports to Scamwatch from people who have already lost money.”
“The average loss is very high at more than $18,000 compared to about $6,500 for all scams. These scams are sophisticated and convincing which is why it is vital people should know the warning signs.”
Nearly $1.8 million was lost in betting and sports investment schemes last year and of the 319 reports made, 35.7 per cent had suffered a financial loss.
Forty-seven per cent of scams were delivered by the phone, followed by email (12.2 per cent), internet (9.4 per cent), text message (8.8 per cent), mail (6.6 per cent), social networking (6.3 per cent) and in person (5.3 per cent).
In the nine months to the end of September 2017, Australian investors collectively lost more than $21 million to investment scams. While more money has been lost, the rate of scams resulting in financial casualties has been less, with just 27.7 per cent of the 1,374 reports made resulting in financial loss.
Spending
Aussies choose to shop local in pandemic recovery
Australians are increasingly turning their attention to homegrown businesses and brands as they look to help the country recover from its first economic downturn in nearly three decades, new research ...Read more
Spending
Awareness of BNPL surges as consumers look for alternative credit
Consumer awareness of buy now, pay later services, including AfterPay and Zip, continues to grow as Aussies look for alternative ways to make purchases. ...Read more
Spending
Tap for Uber, share bike in world-first trial
The NSW government has announced that thousands of Sydney commuters will be able to pay for various modes of transportation through their Opal cards, receiving discounts in the process. ...Read more
Spending
‘Ultra-desirable’ Holden Torana up for auction
A piece of Holden motoring history is up for grabs this weekend, with nostalgic investors likely to spend upwards of $200,000 to secure the rare car. ...Read more
Spending
CBA takes on BNPL sector
The big four bank has launched a new buy-now-pay-later service in a bid to take on established players in the lucrative industry. ...Read more
Spending
Alcohol industry did not profit from the pandemic as was predicted
The COVID-19 pandemic was not the win for alcohol distilleries as previously predicted, with widespread fears about soaring alcohol consumption now proven baseless, new research has found. ...Read more
Spending
New car sales soar but EVs are left behind
Despite Australian consumers continuing to purchase new vehicles, EV sales have remained stagnant, new research has revealed. ...Read more
Spending
Consumer advocates hit back at self-regulated BNPL code of practice
The long-awaited buy now, pay later code of practice is set to come into effect from 1 March, but industry experts remain sceptical of the self-enforced rules. ...Read more
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
The continued property boom, ethical investing and engaging with your super fund
Listen now
Spending
Aussies choose to shop local in pandemic recovery
Australians are increasingly turning their attention to homegrown businesses and brands as they look to help the country recover from its first economic downturn in nearly three decades, new research ...Read more
Spending
Awareness of BNPL surges as consumers look for alternative credit
Consumer awareness of buy now, pay later services, including AfterPay and Zip, continues to grow as Aussies look for alternative ways to make purchases. ...Read more
Spending
Tap for Uber, share bike in world-first trial
The NSW government has announced that thousands of Sydney commuters will be able to pay for various modes of transportation through their Opal cards, receiving discounts in the process. ...Read more
Spending
‘Ultra-desirable’ Holden Torana up for auction
A piece of Holden motoring history is up for grabs this weekend, with nostalgic investors likely to spend upwards of $200,000 to secure the rare car. ...Read more
Spending
CBA takes on BNPL sector
The big four bank has launched a new buy-now-pay-later service in a bid to take on established players in the lucrative industry. ...Read more
Spending
Alcohol industry did not profit from the pandemic as was predicted
The COVID-19 pandemic was not the win for alcohol distilleries as previously predicted, with widespread fears about soaring alcohol consumption now proven baseless, new research has found. ...Read more
Spending
New car sales soar but EVs are left behind
Despite Australian consumers continuing to purchase new vehicles, EV sales have remained stagnant, new research has revealed. ...Read more
Spending
Consumer advocates hit back at self-regulated BNPL code of practice
The long-awaited buy now, pay later code of practice is set to come into effect from 1 March, but industry experts remain sceptical of the self-enforced rules. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
