SWINDLES, SCAMS AND STINGS

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SWINDLES, SCAMS AND STINGS Col Fry, Australian
High Tech Crime Centre Russell Smith, Australian
Institute of Criminology Delia Rickard,
Australian Securities Investment Commission
Chaired by Louise Sylvan (ACCC)
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(No Transcript)
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2007 National Consumer Congress

• Col Fry
• Coordinator
• Australian High Tech Crime Centre
• 14 March 2007

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Role of the AHTCC

• Centre of knowledge and expertise
• assist Australian policing jurisdictions in
  building high tech crime capacity
• Coordinated national approach
• serious, complex and/or multi-jurisdictional
  nature
• generally beyond the capability of any one
  Australian policing jurisdiction

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Key Partners

• State / Territory Police Services
• International Law Enforcement Agencies
• Internet Service Providers (ISPs)
• Commonwealth Government agencies
• Australian Communication and Media Authority
  (ACMA)
• Australian Financial Institutions
• Anti Virus Vendors

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Key Investigation Tools

• Data supplied by ISPs
• Telephone / Data Intercepts
• Search Warrants
• Technical analysis of compromised computers
• Information sharing with International law
  enforcement agencies
• IP / Domain redirection
• Data from victim organisations

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Limitations

• Transnational nature of crime type
• Technical counter-measures designed to disrupt
  law enforcement activities
• Level of cooperation between jurisdictions /
  organisations
• Legislative limitations

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Effectiveness

• IP Blocking effected within hours of site
  identification
• Deregistration of illegitimate sites
• 2 4 days dependent on action by site registrar
• ?? of sites removed from internet

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(No Transcript)
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National Consumer CongressSwindles, scams and
stings what do we know?
Recorded Australian Fraud Offences 1953 - 2006
Rate / 100,000 pop.
Year
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What are swindles, scams and stings?
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What are the main types of scams?

• Most prevalent current types of scams
• Lottery advance fee scams
• Pyramid / chain letter scams
• Employment / money mule / work from home scams
• Other advance fee / Nigerian scams
• Investment / get-rich-quick scams
• Developing types of scams
• Phishing scams
• Online auction scams
• Mobile and wireless scams
• Email threats and extortion scams

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The path to being scammed
Experiencing scams Aust (online scams) 25
NZ (consumer scams) 48
USA (consumer fraud) 36
Responding to scams NZ (Nigerian scams) 1
NZ (ID theft) 1
NZ (investment scams) 0.5
Phishing (NZ) 4 (USA) 8
Losing money to scams Aust (Scamwatch callers)
16 Aust (Sensis online fraud) 4 UK (plastic
card fraud) 3 Hong Kong
(cybercrime) 13
Being victimised by scams Aust (14-64) 9 (gt65)
4 UK (adults scammed) 6.5
ID fraud (Can)20 (USA)4 Online
fraud (USA) 40
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Current avenues for reporting
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How do consumers respond to scams?
Report to police Aust (Scamwatch callers) 7
Aust (online scams) 3
Aust (offline fraud) 24
Aust (online auctions) 6 USA (ID fraud) 34
Canada (marketing fraud) 6
Report to bank / card issuer Aust (online scams)
26 Aust (offline fraud)
72 Canada (marketing fraud) 6
Make no report Aust (Scamwatch callers) 69
Aust (online scams) 50
Aust (offline fraud) 12 Aust
(online auctions) 19 USA (consumer fraud)
29 USA (ID fraud) 21 Canada
(marketing fraud) 44 Canada (ID theft) 17
Report to other agencies Aust (Scamwatch callers)
13 Aust (online scams) 21 Aust
(offline fraud) 8 Aust (online
auctions) 2 Canada (marketing fraud) 1
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Improving our knowledge of consumer fraud

• ACFT / AIC survey of callers in March 2007
• Survey of those who call ACFT agencies throughout
  March 2007
• go to www.aic.gov.au/surveys/acft/
• ACFT / ABS household survey of consumers in 2007
• Scam victimisation questions in the ABS national
  household survey
• Coordinated data collection by ACFT member
  agencies
• Consultation between ACFT agencies to improve
  data holdings
• Encouraging reporting by consumers
• Publicity to improve scam reporting rates by the
  public

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Swindles Scams Stingsan ASICPerspective
Delia Rickard 2007 National Consumer Congress
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What we will cover

• The scams, victims some solutions re
• Illegal investment schemes
• Early release of super scams
• Cold Calling and
• Online banking wrong number scams.

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Illegal Investment Schemes

• Often structured as managed investments.
• 2 categories
• Inadvertently illegal
• Deliberately illegal
• Often marketed through affinity groups
• Techniques to tackle include, proactive ad
  monitoring, better use of intelligence, research,
  enforcement and consumer information campaigns.

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Early release of super schemes

• Early release only possible in very limited
  circumstances.
• Schemes target people on low incomes or in
  financial difficulty
• Consequences tragic often lose all your super
  plus expose yourself to heavy tax liability.
• ASIC, the ATO industry working together to
  tackle.
• Compliance checking, enforcement and education.

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Cold Calling Scams

• Top scam complaint to ASIC
• Numbers growing
• Broad range of potential victims.
• International cooperation re enforcement but
  wont get all.
• Education essential
• Key message just hang up
• Check ASICs free databases
• are they licensed
• does the company exist
• have they been banned
• are they on our illegal cold caller list?

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Online banking wrong number scams

• Phishing, skimming, unauthorised transactions
• Organised crime.
• Review of the EFT Code
• Wrong number scam
• Bottom line
• If it sounds to good to be true it probably
  isnt and
• Even if it doesnt, do your checking before ANY
  investing.