ACCC targets scam websites preying on Gen Y in internet sweep

The Australian Competition and Consumer Commission will target websites scamming younger customers into giving up money and confidential information as part of this year’s Internet Sweep Day.

But businesses and consumers alike are being warned to watch how they conduct business online or face being tricked into giving up their information, which could see them become victims of cyber crime.

But Teresa Corbin, deputy chief executive of the Australian Communications Consumer Action Network, also says businesses need to be aware the ACCC will be targeting operations that even have misleading information on their websites and aren’t necessarily designed to scam.

“We absolutely support this initiative because the interesting thing is, young people may be tech-savvy but they often don’t have the street-smarts needed when it comes to making purchases. So they find a bargain but actually leads to them giving up their information.”

“The sweep will target anyone using misleading advertising. I also think the focus on social networking is interesting because many times you have services on these sites that gather information about your friends in order to scam you. These are growing in popularity.”

ACCC deputy chair Peter Kell says all consumers and businesses should be extremely wary when browsing online, and should follow several safety methods including not responding to unsolicited offers of easy money, conducting due diligence of partners and consider using prepaid credit or debit cards.

He also warns consumers to constantly use secure payment systems and avoid payments via wire transfers, which often can’t be reversed.

“Use a dedicated email or pre-paid phone account for dealing with online traders to avoid unwanted emails or harassment from scammers,” he warns in a statement, and “check out who you are dealing with first from an independent source”.

The sweep, organised by the International Consumer Protection and Enforcement Network with consumer authorities from over 42 countries, will aim to shut down websites and catch cyber criminals.

Kell says this year’s focus is on younger shoppers who are more likely to communicate and shop online. Targets will include advertising on social networking sites and entertainment news providers, among others, which act as a front for stealing information.

“Young people are more likely to shop, conduct financial transactions and socialise online than other groups. But while many may have the technical knowhow they can be easy targets for unscrupulous traders or scammers,” Kell says.

Kell notes that during the past year, the ACCC has received over 2,640 complaints and inquiries from customers aged under 25, but argues the actual number of complaints will be much higher as younger shoppers don’t often contact the agency.

The most common complaints were related to goods not being delivered after they were paid for, not matching the online description or attempts to deny consumer warranties and refund rights. Other complaints relate to online classified ads and rental scams, designed to steal confidential information like credit card numbers.

“The thrill of finding a great bargain or product online can sometimes lead people to take risks,” Kell says. “But be aware that online scams are growing dramatically. Consider some practical safety tips for shopping online so you are the one that ends up with the bargain, not a scammer.”

The sweep will involve agencies across the world searching for various scams, with the aim of tracking down perpetrators and cyber criminals “who are out to make easy money” by taking advantage of younger consumers.

Many of these scams often involve advertisements for jobs, while travel scams are another popular category. These often occur before Christmas and involve spending up to thousands of dollars in some instances.

Like last year’s sweep, the campaign will target any online offer that contains even some wrong information that will hurt consumers. Last year over 40 websites were shut down as part of the scam, including a fake tickets website.