Crackdown on fraudsters: tougher penalties
by Ernie Davitt, National Affairs Editor, ASM
Despite considerable effort by governments to educate the community about online and other consumer fraud, hundreds of people are still falling prey to criminals and tricksters.
Latest estimates indicate consumer fraud is costing the Australian community close to $1 billion annually, and the Federal Government has introduced tough new penalties to crack down on the perpetrators.
“It is important that Australians know about consumer fraud,” Minister for Home Affairs Brendan O’Connor said. “The more they know, the less likely they are to fall victim.”
Welcoming an Australian Institute of Criminology report, Consumer fraud in Australia: costs, rates and awareness of the risks in 2008, Mr O’Connor said 90 per cent of respondents reported having contact with a variety of scams, such as fictitious lotteries, phishing scams and other attempts to elicit personal information.
“The AIC’s research shows that 18 per cent responded to the scammer, and went on to correspond for further information, putting themselves at risk of financial loss or identity theft,” Mr O’Connor said.
Consumer Affairs Minister Dr Craig Emerson said the Government was introducing tough new legislative penalties with fines of up to $1.1 million to crack down on scammers.
“Under the new Australian Consumer Law the ACCC will have increased powers to prosecute people who have acted unconscionably or have misled consumers,” he said.
“Scammers would also face bans from managing companies. Australia is working with other countries, through the International Consumer Protection and Enforcement Network to ensure an effective international approach.
“If consumers are approached by scammers – whether on the doorstep, through the mail, online or anywhere else – they should report the matter to the ACCC by calling 1300 302 502. They can also contact the local consumer affairs agency in their State or Territory.”
Scams may also be reported online, at the ACCC’s SCAMwatch website, www.scamwatch.gov.au.
The AIC’s report was prepared in conjunction with the Australasian Consumer Fraud Taskforce’s annual awareness-raising activities, and is available at www.aic.gov.au