Puppies and Swayze snare $70m in online Aussie scams

Pedigree puppies that never arrived was one of the online scams that cost Australians more than $80 million last year. Photo / Greg Bowker.

From pedigree puppies to Patrick Swayze, fraudsters swindled nearly A$70 million ($81.91m) from Australians last year by exploiting a wide swath of online scams.

About 20,000 people reported becoming victims of fraud in 2009 through scams that targeted their "emotional decision making", a new report says.

But Peter Kell, deputy chair of the Australian Competition and Consumer Commission (ACCC), says real losses could be much higher.

"This figure is likely to be the tip of the iceberg - given people can be embarrassed about reporting that they have fallen victim to scams and lost money in the process," he said in a statement.

The real figure is probably closer to A$1 billion, the ACCC's report released on Monday says, if based on calculations by Australian Bureau of Statistics estimates on annual fraud losses.

Most who have lost money to scams have escaped with less than A$1000 in damages, but two unlucky people reported loosing over A$10 million each in the past 12 months.

Scam complaints tend to peak mid-year with online scams increasing in popularity, the report says. About 54 per cent of scams involved a "mass-marketed advance fee" where consumers pay costs up front for a product that is never supplied.

In one scam last year, pedigree puppies were sold and consumers paid for transportation costs. The puppy was never delivered and the seller disappeared online.

Other scams have involved fake donation websites for the Victorian bushfires and sites that convince consumers to reveal personal information to claim unexpected prizes.

Celebrity deaths were also exploited, the report says. When actor Patrick Swayze died, fake news websites shot up online with ads that sold "anti-virus software" as a scam to gain personal information and credit card numbers.

"Regardless of age, gender, education or income level, any consumer can be scammed," the report says. "Everyone is vulnerable."

The ACCC says such scams artists are hard to track down because they are based overseas. The organisation is instead focusing on prevention and awareness.

* Facts on fraud in 2009

Top 10 types of scams:

- Advance fee or up-front payment (32.4 per cent)
- Online auction and shopping (16.6 per cent)
- Lottery and sweepstake (10.8 per cent)
- Unexpected prize (9.0 per cent)
- False billing (6.8 per cent)
- Banking and online accounts (6.7 per cent)
- Job and employment, business opportunity (5.0 per cent)
- Dating and romance, adult services (2.7 per cent)
- Mobile phone (ringtones, competitions) (2.4 per cent)
- Computer prediction software (including betting) (2.4 per cent).

Scam highlights in 2009:

- February: Australians warned of possible online scams involving the Victorian bushfire appeal.
- April: The economic stimulus package is used by scammers.
- May: A spam email promises a A$500 ($642.21) Myer gift card.
- June: An email starts circulating about a possible tax return of A$452 by completing an online application - really a ruse to gain personal information.
- July: Spyware emails sent out that contain links to viruses and spyware in songs and videos.
- September: Fake news sites on the death of Patrick Swayze prompt warnings of fake anti-virus software advertising.
- October: Facebook users warned of hoax email requiring accounts to be re-set with new password.

Source: Targeting Scams: Report of the ACCC on Scam Activity 2009.

- AAP