False advertising alert
UNREAL DEAL: Sonia Kruger has slammed “disturbing” ads that used her image to sell skin care products. creams, weight loss pills or investment schemes.
In the case of skincare and weight-loss scams, typically they work by encouraging consumers to sign up for a “free trial” of a product.
“When you apply you have to give your credit card details, and they will then automatically roll you into an ongoing subscription unless you cancel within an impossibly short time-frame,” Ms Rickard told news.com.au.
Investment schemes lure victims with promises of huge returns. If they hand over money, the scammers will then “start showing great returns to con you into putting in more money, but of course if you try to take it out it won’t be there”.
The ACCC said it was calling on Facebook and Instagram to do more to crack down on such fake ads that appear on its platforms and also singled out Google, calling on the search engine giant to help prevent scammers reaching potential victims.
It comes as Channel 9 TV host Sonia Kruger slammed “disturbing” ads which used her image to sell skin care products.
Facebook says it took down 837 million pieces of spam from January to March 2018.
“We also disabled about 583 million fake accounts – most of which were disabled within minutes of registration,” Facebook Australia head of communications Antonia Sanda said in a statement provided to news.com.au.
But some of the scams flagged by the ACCC that can make their way to social media can be quite convincing and appear to be legitimate businesses at first glance.
“Scammers are getting more sophisticated,” Ms Rickard said. “They know people respond to celebrity endorsement and there’s a lot of money to be made.”
A majority of victims who fell prey to these sorts of online scams were older. Of those who reported to ScamWatch, people aged 45 and older accounted for 63 per cent of losses. And women were more likely to be duped than men.
To avoid being caught up in such scams, do your homework before signing up to anything, the ACCC urged.
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