Some Types

of Scams and what you need to now about

them

Contents.1. Title Page

2. Contents list

3. Unexpected prize scam

4. Card skimming

5. Bait and switch scams

6. Lottery scams

7. Bibliography

Unexpected prize scamAn unexpected or fake prize scam will notify you that you have won a prize or a competition. There are often costs involved with claiming your prize or winnings, and even if you do receive a prize, it may not be what was promised to you. These scams work by taking your money and then not sending you the prize or sending a prize that is not what you expected. The scammers make their money by making you pay small or large fees, or call their premium rate phone numbers (usually starting with 190) to claim your ‘prize’. These premium rate calls can be very expensive and the scammers will try to keep you on the line for as long as they can or ask you to call a different premium rate number. You will lose any money that you pay and you may not even receive a prize.

You are approached with an offer of a guaranteed prize.

To claim your prize you have to first buy a ticket.

You have to pay fees to collect your earnings.

You have to call a premium rate phone number (usually starting with 190) to claim your prize.

The notification claims to be legal.

Card Skimming Card skimming’ is the illegal copying of information from the magnetic strip of a credit card or ATM card. The scammers try to steal your personal details so they can access all your accounts. Once scammers have skimmed your card, they can create a fake or ‘cloned’ card with your personal details on it. Card skimming is also a way for scammers to steal your personal identity and use it to commit identity fraud. By stealing your personal details and account numbers the scammer is able to borrow money or take out loans in your name. Warning signs:

A shop assistant takes your card out of sight to process your transaction.

You are asked to swipe your card through two machines.

You notice something suspicious about the card slot on an ATM (e.g. an attached device).

You notice unusual or unauthorised transactions on your account or credit card bill.

Bait and switch ScamsBait-and-switch is s scam where a business advertises a great product or service for a low price. When the customers attempts to buy the product or service, however, they find out that the product is not available. The business then uses this opportunity to try to sell customers a more expensive product instead. This type of scam is commonly found in a newspaper or in a retail store.

Some warning signs are:

To good to be true

Confusing price terms

Sales person pushes towards a different deal.

Lottery ScamsFor some consumers, the idea of winning millions of dollars in an overseas lottery is a dream come true. Unfortunately, this type of scam can be the beginning of a huge nightmare. If you receive an email or a letter letting you know that you have won a huge cash prize in an overseas lottery it is almost certainly a fraud. The Spanish Lottery or El Gordo lottery scam is one of the most common type of lottery scams. It starts off with the consumer receiving a series of credible looking documents either offering tickets in an overseas lottery or advising them that they have won millions of Euros in an official lottery draw overseas. The documents are usually addressed personally to the consumer and are often marked with things like ‘official notification’ or ‘confirmed’ or ‘verified’ in an attempt to create the scam look reliable or real. To collect their winnings, consumers have to pay an up-front fee to arrange for the funds to be ‘cleared’ and deposited into their bank account, giving personal information. Often, the initial request for advance payment is followed by demands for more money to cover unexpected expenses about the clearing or transfer of the money. These scams also require the consumer to provide extensive personal information such as a copy of their driver’s license and passport to establish their identity. This information can then be used to steal their identity which can destroy their entire life. What do do if you receive a overseas lottery winning’s notice. 1. Ignore the notice it is almost certain that it is a scam. 2. Do not send any money or give any personal details out to the contactor. 3. Remember you have to be in it to win it so if you did not buy tickets you could not have won.

“Wow you have won 1,000,000 Euros in the London Bridge Lottery. Click on this link below to claim your

winnings??” Would you click??

http://www.fairtrading.nsw.gov.au/ftw/Consumers/Scams/Types_of_scams/Lottery_scams.page? 9/7/15

http://www.scamwatch.gov.au/content/index.phtml/tag/CardSkimming 9/7/15

http://www.scamwatch.gov.au/content/index.phtml/tag/UnexpectedPrizes 10/7/15

http://www.moneycrashers.com/bait-and-switch-advertising-definition-laws/ 10/7/15