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
Toyota returns $18m in JobKeeper payments
An unexpected surge in sales in 2020 has inspired car manufacturer Toyota to write an $18 million check to the government, returning the amount it received in JobKeeper subsidies and touting the move...Read more
Spending
Aussies spend up big during pre-Christmas sales
Consumers have taken advantage of new freedoms post-lockdown and pre-Christmas discounts as retail sales soared in November, official figures have revealed. ...Read more
Spending
Aussies unlikely to splash the cash following pandemic
Australian consumers are likely to cut back on discretionary items in 2021 with many re-evaluating their spending habits following the COVID-19 pandemic, new research has revealed. ...Read more
Spending
‘It’s back’: SA unveils second Great State Voucher
South Australian residences or those planning to travel to the state could save up to $150 as the government continues its support for the local tourism sector. ...Read more
Spending
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” prem...Read more
Spending
Young Aussies pressured to buy love this Christmas
Younger Australians are likely to spend more this Christmas as they equate expensive gifts with love, a researcher has found. ...Read more
Spending
Buying local this Christmas could raise over $1bn for small business
New research suggests that Australians could deliver an estimated $1.12 billion to the small-business sector this Christmas just by buying one more gift from their favourite local business. ...Read more
Spending
WFH sees CBD pubs’ profits halve
Despite a lift in consumer spending, the easing of restrictions has not translated into a boom for the hospitality sectors in NSW and Victoria, a big four bank has revealed. ...Read more
Spending
Toyota returns $18m in JobKeeper payments
An unexpected surge in sales in 2020 has inspired car manufacturer Toyota to write an $18 million check to the government, returning the amount it received in JobKeeper subsidies and touting the move...Read more
Spending
Aussies spend up big during pre-Christmas sales
Consumers have taken advantage of new freedoms post-lockdown and pre-Christmas discounts as retail sales soared in November, official figures have revealed. ...Read more
Spending
Aussies unlikely to splash the cash following pandemic
Australian consumers are likely to cut back on discretionary items in 2021 with many re-evaluating their spending habits following the COVID-19 pandemic, new research has revealed. ...Read more
Spending
‘It’s back’: SA unveils second Great State Voucher
South Australian residences or those planning to travel to the state could save up to $150 as the government continues its support for the local tourism sector. ...Read more
Spending
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” prem...Read more
Spending
Young Aussies pressured to buy love this Christmas
Younger Australians are likely to spend more this Christmas as they equate expensive gifts with love, a researcher has found. ...Read more
Spending
Buying local this Christmas could raise over $1bn for small business
New research suggests that Australians could deliver an estimated $1.12 billion to the small-business sector this Christmas just by buying one more gift from their favourite local business. ...Read more
Spending
WFH sees CBD pubs’ profits halve
Despite a lift in consumer spending, the easing of restrictions has not translated into a boom for the hospitality sectors in NSW and Victoria, a big four bank has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
