Aussies lost $9.6 million to this ‘devastating’ scam

Have you received a job offer through a social media platform that looked too good to be true? Well, you’re not alone.

The Australian Competition and Consumer Commission’s (ACCC) Scamwatch revealed Aussies lost $9.4 million last year to employment scams.

“The most devastating employment scams in 2022 happened via social media, with victims told they could earn several hundred dollars for little effort while working from home,” Scamwatch said.

“Typically, these scams claim to be associated with legitimate companies, offering ‘task’-based work requiring highly repetitive yet simple data entry or validation via an app or website, the need to top up accounts via online trading platforms, and requests for more money to allow withdrawal of large sums.”

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The average loss was $14,963 and the median loss was $3,150. Most financial losses were experienced by people who were contacted on social media ($3.2 million) or via mobile applications like WhatsApp ($3.2 million). Most payments were made via cryptocurrency ($4.8 million) followed by bank transfer ($3.4 million).

Scamwatch said that, while many of these scams came from social media platforms, they could even be found on classified ad websites.

“The job on offer may require you to do something simple such as stuffing envelopes or assembling a product using materials that you have to buy from the ‘employer’. To accept the job, you will be asked to pay for a starter kit or materials relevant to the job or scheme,” Scamwatch said.

“If you pay the fee, you may not receive anything or what you do receive is not what you expected or were promised. For example, instead of a ‘business plan’, you may be sent instructions for how to get other people to join the same scheme.

“On completion of your work, the scammer will refuse to pay you for some or all of your work, using excuses such as the work not being up to the required standard.”

Scamwatch said another type of job-opportunity scam asked victims to use their bank accounts to receive and pass on payments for a foreign company.

The scammers promise a percentage commission for each payment passed on.

“This is likely to be a form of money laundering which is a criminal offence,” Scamwatch said,

“If you provide your account details, the scammer may use them to steal your money or commit other fraudulent activities.”

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