16 March 2002

New Initiative to Slam Million-Dollar Scams

The Government today announced a new national information initiative to help combat the growing number of scams being targeted at Australian consumers.

Senator Ian Campbell, Parliamentary Secretary to the Treasurer, announced the release of a new consumer publication, The Little Black Book of Scams and a Web site, www.scamwatch.gov.au that aim to raise consumer awareness of the different types of scams that exist and how to deal with them.

"I am committed to equipping consumers with the information they need to both identify scams and defeat them. Unfortunately, many people are prone to the influence of scammers by being unaware of their tricks and too trusting in accepting their deals," said Senator Campbell.

"For instance, the Australian Competition and Consumer Commission (ACCC) is currently prosecuting an organisation called Greenstar in the Federal Court in Perth, which the Commission believes is involved in an illegal pyramid selling scam involving worm farming and an ATM card scheme. The Commission alleges Australian consumers and investors could have lost up to $10 million," said Senator Campbell.

"That sort of money redirected into quality managed investment schemes or other Australian companies would help to build the economy, rather than undermine it along with the lives of so many individuals," said Senator Campbell.

The Little Black Book of Scams and the Scamwatch Web site have information on a wide range of consumer scams including unsolicited letters, investment scams, miracle cures and Internet scams. They also include information about what the key elements are of any scam.

"Part of the difficulty in shutting down scams is that they invariably crop up again in slightly different forms. For example, today's Nigerian Scam, where a consumer receives a letter or an e-mail from a fictitious Nigerian exile wanting to transfer millions of dollars, is just a variation on the Spanish Prisoner scam which dates back to 1588. The only difference is that the original scam used parchment and the promise of a hidden treasure chest," said Senator Campbell.

"That is why it is important for consumers to understand the basic tricks behind most scams and always be one step ahead of the scammers. By picking up a free copy of The Little Black Book of Scams, a consumer can quickly understand the key things to look for when being approached by someone with a special offer," said Senator Campbell.

"There is no shame in being scammed either. It is important for people to report scams to consumer protection agencies so that action can be taken and others can benefit. People who may feel ashamed to speak up shouldn't feel alone, as even the smartest of consumers can be tricked by a clever scammer. I hope that these new information resources serve to expose these shady and often secretive practices to the wider public," said Senator Campbell.

Copies of the Little Black Book of Scams can be obtained from the Consumer Affairs Division of the Treasury on 02 6263 3300 or by e-mail at publications@treasury.gov.au.

CANBERRA
15 March 2002

Contact: Tammie Webb, Senator Campbell's Office
02 6277 3955 or 0417 400 227;
http://parlsec.treasurer.gov.au

WA MEDIA: Copies of The Little Black Book of Scams will be available from Senator Campbell's Perth office by calling 08 9325 4227.