Written by Patrick Fullerton in November, 2011

(Source: http://www.scamwatch.gov.au)

Before the introduction of the internet, small business was usually confined to a local customer base. The internet has changed this forever. Now the sole trader who sells items as a hobby from their home has worldwide customer base. Unfortunately this is also the case for criminals.

Criminals throughout the world are fraudulently obtaining funds from unsuspecting victims through the use of the internet, in particular email. One of the most common scams is known as the “Nigerian 419 scam” (named after the Nigerian Penal Code under which it is prosecuted).

This scam usually involves the victim receiving an email where the offender introduces themself and their story. The story usually revolves around the offender having access to a large amount of money but needing assistance in transferring it out of the country. The victim is promised a large amount of that money if they assist the offender in the transfer. After an amount of correspondence with the victim, the offender will inform them they need to pay things such as legal fees, bribes, taxes etc to secure the money. The victim is then asked to fund these payments via a cash transfer to an international account. Once the cash is transferred the offender may try to obtain more funds or simply disappear never to be heard of again.

The Australian Consumer and Competition Commission (ACCC) have created a website (http://www.scamwatch.gov.au) to assist the public in recognising, avoiding and reporting these scams. As these scams usually originate overseas they are hard to investigate and therefore the victims rarely receive their money back.

This is just one of many types of scams being conducted over the internet. Some scams use incentives such as the promise of romance or employment.  The website offers information on all types of scams and has a contact page for reporting them.

What can you do? As these scams are evolving on a daily basis it is important to be aware of them. Visit http://www.scamwatch.gov.au and become familiar with its contents. Be vigilant and thoroughly investigate any investment opportunities. Always seek professional advice before getting involved in such opportunities and remember to never send credit card details via email or open up websites through email attachments.

PLEASE NOTE:  All information contained in the articles below was correct at time of publishing.