5 March 2007

If It's Too Good to Be True then It's Probably a Scam

If it's too good to be true then it's probably a scam says Consumer Affairs Minister Judith Tizard at today's launch of Fraud Awareness Month.

During the month-long campaign called "Scams target you - protect yourself", the government is working to help New Zealanders become aware of how to protect their money, phone, computer and their personal identity against scammers.

"It's estimated that more than 20,000 New Zealanders a year get caught up in a scam and invest time or money in it – that's a city the size of Taupo," says Judith Tizard.

"Unfortunately scams are seldom reported as most people are too embarrassed to report them, making it even harder to catch the scammers. UK research estimates that less than 5% of scams are reported.

"But scams are illegal and should be reported like every other crime."

Consumer Affairs estimate that nearly half of New Zealand adults had been exposed to mass marketed scams, spread especially through email or the internet.

UK research has exploded the myth that the elderly are the targets of scams. People of all ages and backgrounds are being taken in by these increasingly sophisticated scams. The most common scams are banking and investment scams, Nigerian letters and pyramid selling schemes.

In a worst case scenario a New Zealand mother and son lost $200,000 to a Nigerian scam last year. The pair said it was very believable and they even developed a rapport with the scammers exchanging information about their families.

"The rule of thumb is that if it's too good to be true then it's probably a scam. You can't win a lottery you didn't enter. And banks don't ask for your pin number by phone or email. Be vigilant – don't do online banking at internet cafes."

"Please use the opportunity and the advice available during this month-long campaign to improve your awareness and increase your vigilance. And if you do get burnt, then please report it".

Further Information

The Ministry of Consumer Affairs and the Commerce Commission have prepared the following advice on protecting yourself from scams:

Protect Your Money

• Don't send money or give credit card details to someone you don't know or trust
• Never respond to an email asking for your PINs or passwords
• Seek independent advice before investing
• Avoid online banking at internet cafes
• Check bank statements

Protect Your Phones

• Don't give out your number to just anyone.
• Be cautious about unexpected calls and text messages.

Protect Your Computer

• Keep your software protection up to date
• Don't respond to unsolicited emails
• Don't open attachments unless it's from a trusted source

Protect Your Identity

• Don't share personal information (e.g. PINs, maiden names)
• Destroy old bills, statements or expired credit or identity cards
• Check your credit report at least once a year.

Report Scams

• If you get burnt tell the Police
• Find out more or forward any you receive to Scamwatch
• Or contact your nearest Citizen's Advice Bureau