Fraud Awareness Month Protect Your Phone

Think that phone call or text message sounds like a scam? "Hang up or delete" is the advice today from the Ministry of Consumer Affairs and the Commerce Commission, as part of Fraud Awareness Month.

"As well as the cold-call scam promising an incredible investment return that has been around for a while now, scammers are devising more sophisticated ways to take advantage of consumers through phone calls or texts," says Liz MacPherson, General Manager of the Ministry of Consumer Affairs.

"Scammers might disguise themselves as friends - using chatty "Hi, you back yet?" style text messages to get you to reply. Don't think that these must be from someone you know. Always check a phone number before replying - it may not be a friend at all."

Consumers can avoid scams that target them by phone when they know what to look out for, or exercise caution so as not to fall into the scammer's trap.

Ms McPherson offered the following tips to help consumers protect themselves from phone scams:

• If the call is unwanted, or sounds too good to be true, hang up.
• Be suspicious of unexpected calls and text messages. Before replying, check the number - you might be charged at a higher rate to return the call, fax or text if it goes to an 0900 service.
• If you are receiving unwanted text messages: text "Stop" to the number.
• Don't give your number to just anyone. Ask them why they need your number and what will they use it for. Also think about using the facility on your phone to block your phone number when you make calls. Contact your phone company for advice on how to block your phone number.

Businesses can also be targeted by scammers over the phone or by fax, advises Deborah Battell, Commerce Commission Director of Fair Trading.

Proforma invoicing is one example. This is the practice of charging a business for advertisements they did not order or authorise. In these cases, a person will telephone a business confirming that an advertisement has been approved for placement in a publication, when the business has not, in fact, previously approved it.

Ms Battell says, "Businesses receiving proforma invoices should exercise the same caution as they would with any unsolicited offer. Do not sign or approve anything on the spot. Ask who approved the advertising. Be suspicious if the caller cannot give a name and check with any named person first."

"Do not automatically blame a bad memory if the caller says you approved advertising but you cannot recall the approval. It is likely you are being scammed."

Businesses receiving proforma invoices for services or goods they didn't order can report this to the Commerce Commission.

Background

Consumer scams are crimes of dishonesty, such as forgery, counterfeiting, on-line deception, and theft, which target people who seek to purchase goods and services. Potential victims can be those who use computers and the internet, older people, people whose financial situation makes them interested in 'get rich quick schemes', and people who use mobile phones.

As part of a trans-Tasman approach to combat consumer fraud and scams targeted at consumers, the Australasian Consumer Fraud Taskforce was established in March 2005 and comprises 18 government regulatory agencies and departments in Australia and New Zealand.

Agencies participating in the Taskforce are:

New Zealand Government:

Australian Government:

State and Territory Governments:

Consumers who think they've spotted a scam can get more information and report them on the Scamwatch website at www.scamwatch.org.nz

Consumers affected by scams can complete the Fraud Awareness Month online survey at www.consumeraffairs.govt.nz/scamwatch/scammediareleases.html

Consumers can also report scams to the Commerce Commission.