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Date: April 29, 2024 Mon
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9 results foundAuthor: Budd, Carolyn Title: Consumer Fraud in Australasia: Results of the Australasian Consumer Fraud Taskforce Online Australia Surveys 2008 and 2009. Summary: Those who perpetrate consumer scams use a wide range of deceptive practices and methods of communication. However, all aim to trick unsuspecting consumers into parting with money or information, often to criminals located overseas. Phishing attacks, lottery and prize scams, financial investment scams and advanced fee fraud are just a few of the more common scam varieties that are used in an attempt to gain either money or personal details that will eventually be used for financial gain by offenders. The increased use of electronic forms of communication and the ease of sending mass scam invitations via the Internet has also resulted in an increase in the number of scam requests disseminated globally. Scam invitations may appear benign to those who receive them and choose not to respond. This form of spam may be seen as an unfortunate consequence of using the Internet, however, scams can cause serious financial and other harms to those who are victimised, as well as to the wider community. Consumer fraud has been estimated to cost Australia almost $1b annually, although the full extent of the losses is unknown as many choose not to report their experiences officially. Although victims of scams can lose as little as $1, some send substantial amounts to criminals, occasionally exceeding many hundreds of thousands of dollars. Those who send such large amounts frequently feel ashamed of what they have done, or apprehensive that they might have acted illegally. Victims may also receive little sympathy for having being victimised and may be blamed for being gullible. These factors act to deter victims from formally reporting the scam to police. When the full circumstances of cases are known, however, the sophistication of the deception makes it clear that victims have been enticed by a serious and concerted campaign of trickery which preys on their weaknesses and vulnerabilities. The Australasian Consumer Fraud Taskforce (ACFT) includes 20 government regulatory agencies and departments in Australia and New Zealand that work alongside private sector, community and non-government partners to prevent fraud. In order to understand the dynamics of consumer fraud victimisation, the ACFT has conducted a range of fraud prevention and awareness-raising activities since 2006. One key activity of the ACFT is to hold an annual consumer fraud survey to obtain a snapshot of the public’s exposure to consumer scams, to assess their impact, to determine how victims respond and to identify any emerging typologies and issues. This report presents the results of surveys conducted in conjunction with the 2008 campaign that focused on Seduction and Deception Scams and the 2009 campaign that focused on sending the message— Scams Target You: Protect Yourself, Don’t Be a Victim of Scammers and Fight the Scammers. Don’t Respond. Overall, both surveys found that despite most respondents indicating that they had received a scam invitation over the specified 12 month period, the majority did not respond. Invitations sent by email remained the most common method of receiving an invitation, with lottery scams attracting the highest number of victims in 2008 whereas in 2009, work from home scams were the most common way respondents were scammed. Although the survey relies on self-reported data, it still provides a useful means of identifying the nature of victimisation and for identifying areas for further research into consumer fraud. The links identified between scam victimisation and factors such as age, income, reporting and jurisdiction could be used to develop more strategic consumer fraud awareness campaigns that focus on the groups more vulnerable to scam victimisation. The relationships between these variables and victimisation could then be explored more fully using representative samples of the population, or in-depth data collection techniques such as interviewing of those who have been defrauded. With a more extensive understanding of who is victimised and why, more effective scam prevention measures can be enacted. Details: Canberra: Australian Institute of Criminology, 2011. 74p. Source: Internet Resource: Technical and Background Paper No. 43: Accessed March 10, 2011 at: http://www.aic.gov.au/publications/current%20series/tbp/41-60/tbp043.aspx Year: 2011 Country: Australia URL: http://www.aic.gov.au/publications/current%20series/tbp/41-60/tbp043.aspx Shelf Number: 120967 Keywords: Consumer FraudConsumer ProtectionFinancial CrimesInternet CrimesScams |
Author: Australian Competition and Consumer Commission Title: Targeting Scams: Report of the ACCC on Scam Activity 2012 Summary: Scam reports •• In 2012 the ACCC continued to observe a high level of scams activity in Australia, with 83 803 scam-related contacts received from consumers and small businesses. •• Estimated scam losses reported to the ACCC totalled $93 423 030, a nine per cent increase from 2011. Actual losses are likely to be higher as many scams go unreported and the ACCC is only one of several agencies that receive scam reports. •• Similar to 2011, the majority of consumers and small businesses contacting the ACCC about scam-related activities in 2012 (nearly 88 per cent) reported no financial loss. The most common category of loss was again between $100 to $499. This indicates the continued use of ‘high volume scams’, which are delivered to large numbers of recipients but cause smaller amounts of loss per victim. At the same time, the ACCC continued to receive reports of individuals suffering very high losses. Most reported scams •• For the fourth consecutive year, advance fee/up-front payment scams were the most commonly reported scam type, constituting 32 per cent of all scam contacts. •• Computer hacking remained the second most reported scam type in 2012, representing just over 13 per cent of total scam reports to the ACCC. The ‘Microsoft’ computer virus scam continued to heavily target Australians. The public was also targeted by a scareware scam where the perpetrators pretended to be from the Australian Federal Police. •• Online shopping scams increased by 65 per cent with reported financial losses totalling $4 038 479. •• The ACCC also received a high level of contacts about banking and online account scams, false billing, job and employment scams, dating and romance, and unexpected prize scams. Age range and location demographics •• In 2012 scams were most commonly reported by persons in the 35 to 44 age category, representing 32 per cent of contacts. This saw a shift from the previous year, where contacts were spread across a wider range of age from 25 through to 54 years. •• The greatest amounts of scam reports to the ACCC came from New South Wales (23.5 per cent), Queensland (21 per cent), Victoria (18 per cent) and South Australia (12.5 per cent). Scam delivery method •• Scams delivered via telephone (landline and mobile) remained the preferred delivery method in 2012, with combined voice and text message scams constituting over half (56 per cent) of all reports to the ACCC. Unsolicited telephone calls represented just over 42 per cent (35 419) of contacts reported to the ACCC, accounting for $24 213 979 in reported losses. Scams delivered via SMS represented over 14 per cent (11 797) of total contacts and $759 986 in reported losses. Details: Canberra: Australian Competition and Consumer Commission, 2013. 82p. Source: Internet Resource: Accessed July 10, 2013 at: http://transition.accc.gov.au/content/item.phtml?itemId=1117162&nodeId=18648488db8502f9c2a254d931814e39&fn=Targeting%20scams:%20Report%20of%20the%20ACCC%20on%20scam%20activity%20in%202012.pdf Year: 2013 Country: Australia URL: http://transition.accc.gov.au/content/item.phtml?itemId=1117162&nodeId=18648488db8502f9c2a254d931814e39&fn=Targeting%20scams:%20Report%20of%20the%20ACCC%20on%20scam%20activity%20in%202012.pdf Shelf Number: 129358 Keywords: Consumer Protection and FraudFraudScams |
Author: Chilton, Bart Title: Ponzimonium: How Scam Artists are Ripping Off America Summary: In December of 2008, the world learned that legendary investment guru Bernard Madoff made-off with an estimated $50 billion in what was called the Mother of all Ponzi Schemes. Ponzi schemes, named after Charles Ponzi, are scams in which early investors are given sup-posed returns paid through funds provided by later investors. Typically, an investment is made and then some profits are paid out, prompting the investor to assume that his or her money has increased in value. In actuality, the perpetrators of these schemesPonzi, Madoff, or the others described in this booktake the money for themselves. The legal term for this kind of taking is misappropriation. As new investors enter the fraud, supposed returns are offered continually to initial investors, and many times are accompanied by fake account statements. This continues until new money stops flowing in and the investors want their money back. During the 2008 economic downturn, people needed their money back at the same time that there were no new investors. Many house of cards scams have fallen and the perpetrators of the swindles have been caught. Charles Ponzi ran these types of scams in the U.S. until he was deported to Italy, his birth-place, in 1934 as an undesirable alien. Many think that one would have to be foolish to invest in such a scam, but Madoff and other such folks are good at their craft. They often put on a great false front, even fooling the master of illusion, movie director Steven Spielberg. But Spielberg wasn't alone. Even banks we assume would undertake due diligence before funds were invested got caught in Madoff's web. Investors included Austrian, British, Dutch, Swiss, French, Italian, Portuguese, and Spanish banks. Larry King and the owner of the New York Mets, Fred Wilpon, were duped, as was former LA Dodgers pitcher, Sandy Koufax. Actors Kevin Bacon, Kyra Sedgwick, John Malkovich, and Zsa Zsa Gabor, as well as New York University and New York Law School, a union's health care fund, several trusts, endowments, and non-profits such as the Elie Wiesel Foundation for Humanity made the widely publicized victims list. Even the International Olympic Committee wasn't immune from the Madoff scam. While this may have been the largest swindle ever, scores and scores of Ponzis of all sizes and values continue to be unearthed. There have never been more of these scams, and they are occurring all over the world. That's why this publication is called Ponzimonium. The cases described here are just as damaging to the victims as the Madoff scam, and many of them are every bit as complicated and seemingly authentic. Meanwhile, Madoff traded his Manhattan penthouse for a jail cell for the next 150 years, but the damage he did to those he took advantage of cannot be repaired. Their story and others provide an instructive window into how these schemes operate and how to avoid becoming a Ponzi scheme victim. Details: Washington, DC: Commodity Futures Trading Commission, 2011. 73p. Source: Internet Resource: Accessed March 12, 2014 at: http://bookstore.gpo.gov/sites/default/files/files/Ebooks/Ponzimonium_PDF.pdf Year: 2011 Country: United States URL: http://bookstore.gpo.gov/sites/default/files/files/Ebooks/Ponzimonium_PDF.pdf Shelf Number: 131862 Keywords: Financial CrimesFraudPonzi SchemesScams |
Author: Australian Competition and Consumer Commission Title: Targeting Scams: Report of the ACCC on Scams Activity 2013 Summary: This report explains key trends in scam activity and highlights the impact of scams on the community. It highlights the cooperative work of the ACCC, other regulators and law enforcement agencies to disrupt scams and educate consumers. Overall contacts levels and financial losses - In 2013 the ACCC continued to observe a high level of scams activity in Australia, with 91 927 scam-related contacts received from consumers and small businesses, an increase of nearly 10 per cent over 2012. - Estimated scam losses reported to the ACCC totalled $89 136 975, representing an almost 5 per cent decrease from 2012 ($93 423 030) - a reversal in trend from 2011 and 2012 where large increases were observed. However, actual losses are likely to be higher as many scams go unreported and the ACCC is only one of several agencies that receive scam reports. Most reported scams - In 2013 dating and romance scams moved to number one position in terms of financial losses, with $25 247 418 reported lost. For the third consecutive year the ACCC has observed a decrease in the conversion rate of people who responded to an approach by a scam admirer and subsequently lost money - from 48 per cent in 2011 to 46 per cent in 2012 to 43 per cent in 2013. However, financial losses continue to remain substantially disproportionate to contacts, with dating and romance scams making up only 3 per cent of all scam-related contacts in 2013. - Similar to previous years, the majority of people contacting the ACCC about scam-related activities in 2013 (slightly over 86 per cent) reported no financial loss. Nearly one third of people who lost money reported losing between $100 and $499, which indicates scammers continuing to prefer 'high volume scams' - that is, scams that are delivered to large numbers of recipients but cause smaller amounts of loss per victim. - At the same time, the ACCC continued to receive reports of individuals suffering significant losses. Over 10 per cent of scam contacts reported losing above $10 000. However, there were only two reports of losses above $1 million in 2013 compared to six reports in 2012. - In 2013 the top 10 scams reported to the ACCC in terms of contact levels remained the same with some minor movements in ranking. The three most commonly reported scams were advance-fee fraud, phishing and identity theft, and computer hacking scams. - The ACCC observed a significant increase in phishing and identity theft scams, with reports increasing by over 73 per cent from 2012 to 15 264 contacts. Actual financial losses remained low, suggesting that scammers are instead seeking personal information for later gain. - Computer prediction software scams saw a significant increase in both contacts and financial losses from the previous year, with an increase of 41 per cent in contact levels and associated losses more than doubling to a total of $9 144 288. This increase is likely attributable to a collapsed gambling system in Victoria, which received widespread media coverage. Age range and location demographics - In 2013, of all individuals who contacted the ACCC and provided their age, scams were most commonly reported by persons in the 45 to 54 age category. The percentage of reports from people who identified as 65 years and over nearly doubled to 18 per cent. - The greatest amount of scam reports came from New South Wales, Victoria and Queensland. Contact levels and associated losses were largely consistent with the percentage of the Australian population by state and territory. - At the end of 2013 the ACCC updated its data collection process and in 2014 will be able to analyse scam categories against new fields such as a victim's gender, whether they are a small business, or may be disadvantaged or vulnerable. Scam delivery method - In line with a shift in recent years, in 2013 over half (52 per cent) of scams were delivered via phone and text message, with combined total financial losses of $29 391 887. Telephone calls remained the most popular delivery method, with reports and losses rising in parallel by nearly 13 and 14 per cent respectively, and losses totalling $3 335 763. Scams delivered by text message decreased by around 35 per cent, while reported losses more than doubled to $1 848 805. - Despite representing a lower percentage of contacts (40 per cent), scams delivered online caused the greatest financial harm with associated losses totalling $41 781 071. While contacts of reports delivered via email increased by nearly 14 per cent, financial losses almost halved (49 per cent), which could indicate scammers using email to 'fish' for personal information but turning to other online communication platforms such as social networking sites for monetary gain. The ACCC's education and awareness raising activities - The ACCC continued to educate the public about how to identify and avoid scams, and raise community awareness about current scams targeting Australians. SCAMwatch, the Australian Government's website for information about scams that is run by the ACCC, received 1 228 599 unique visitors in 2013, an increase of over 26 per cent from the previous year. - The ACCC also continued to issue SCAMwatch radar alerts to its free subscription base, which in 2013 increased by 30 per cent to reach 29 150 subscribers. A total of 18 SCAMwatch alerts were issued warning about current scams, including joint radars issued with other government agencies and companies about scammers misusing consumer trust in these well-known entities. - The ACCC's SCAMwatch_gov Twitter profile also continued to communicate with its 4374 followers in real time as scams emerged, with 583 tweets posted during the year. - The 2013 National Consumer Fraud Week campaign, 'Outsmart the scammers!' (17-23 June), received significant media coverage as the ACCC and the Australasian Consumer Fraud Taskforce urged people to stay one click ahead of scammers when shopping online. - The Little Black Book of Scams is the ACCC's most popular publication and 91 203 copies were distributed in 2013. A new small business scams factsheet was also produced. The ACCC's collaboration, disruption and enforcement activities - In 2013 the ACCC worked with a range of private and public sector representatives to disrupt scams including online shopping scams and the 'Yellow Pages' small business scam. - The ACCC continued to chair the Australasian Consumer Fraud Taskforce, and hosted a conference and workshop as part of National Consumer Fraud Week where representatives across government, industry and academia explored how to minimise scams activity in the digital economy. - The ACCC successfully prosecuted the perpetrators behind schemes targeting small businesses including the operators of a pyramid selling scheme, an online business directory scam with a philanthropic slant, and an office supply scheme. - The ACCC also commenced planning for a national disruption project aimed at relationship scams, which is a 2014 compliance and enforcement priority. The ACCC will work closely with other agencies on this project, building upon previous work undertaken to disrupt relationship scams. Details: Canberra: ACCC, 2014. 81p. Source: Internet Resource: Accessed July 11, 2014 at: https://www.accc.gov.au/system/files/Targeting%20Scams%202013.pdf Year: 2014 Country: Australia URL: Shelf Number: 132658 Keywords: Consumer Protection and FraudCrimes Against BusinessFinancial CrimesFraudScams |
Author: Australian Competition and Consumer Commission Title: Targeting Scams: Report of the ACCC on scams activity 2015 Summary: The Australian Competition and Consumer Commission's (ACCC) seventh annual report on scams activity in Australia highlights the significant financial loss and emotional harm incurred by the Australian community as a result of scams. In 2015 the ACCC received over 105 000 scam reports, 14 000 more than in 2014. Reported monetary losses also grew by 4 per cent, to almost $85 million. For this year's report the ACCC has also reviewed data from other jurisdictions that receive reports or detect scams to gain a clearer picture of the significance of losses caused by scam activity in Australia. Reports to the Australian Cybercrime Online Reporting Network (ACORN) revealed losses of over $127 million1. Additionally, various scam disruption programs, operated by the ACCC and other agencies, also detect Australians sending funds to high risk jurisdictions. A combined estimate of losses to this unreported scam activity is $17.1 million. Combining Scamwatch and ACORN data with losses detected through scam disruption work, total scam losses exceed $229 million. This report seeks to explore the nature of scam losses and identify some emerging trends. It focuses on data reported to Scamwatch and statistics provided in the report are in respect of that data unless specifically stated otherwise. By far the most concerning trend in the ACCC's Scamwatch data related to investment scams, which overtook dating and romance scams as the category with the largest financial losses reported by Australians in the last year. Losses to investment scams almost doubled, from $12.5 million to $24.4 million with six people reporting individual losses of $1 million or more. Additionally, ACORN data shows reported losses to investment scams of almost $17 million. This brings total reported losses to more than $41 million and this still does not include those that do not report or may have reported to another organisation. It is not hard to see why many Australians are losing large sums of money in these scams given how difficult they are to identify. These more sophisticated scams often involve scammers who use accurate technical jargon in carefully crafted cold calling scripts and accompany this with glossy brochures backed up by professional-looking websites. Even astute investors have been known to fall victim to these more calculated scams. Losses reported to Scamwatch from dating and romance scams have reduced by more than $5 million (18.5 per cent) to $22.7 million, and are the second highest category in 2015. Together with investment scams, they account for 56 per cent of scam losses reported to Scamwatch in the past year. A further $14.8 million was reported to ACORN. When you add in the $17.1 million identified through disruption initiatives, this brings the total for relationships scams to over $54 million. While investment and dating scams caused the most losses in 2015, the most commonly reported scams to the ACCC have been phishing scams, reclaim scams and upfront payment/advanced fee scams. Over 15 000 reports of phishing scams have been received, resulting in a total reported loss of $363 270. While the number of reports we received are spread across all age groups, it is middle aged and older Australians who are reporting the highest losses. The ACCC has taken a closer look at the risk that scam activity poses to older Australians in this report. Details: Canberra: ACCC, 2016. 81p. Source: Internet Resource: Accessed May 19, 2016 at: http://apo.org.au/files/Resource/targeting_scams_-_report_of_the_accc_on_scam_activity_2015.pdf Year: 2016 Country: Australia URL: http://apo.org.au/files/Resource/targeting_scams_-_report_of_the_accc_on_scam_activity_2015.pdf Shelf Number: 139103 Keywords: Consumer Protection and Fraud Crimes Against BusinessCybercrimeFinancial CrimesFraud Scams |
Author: Lonsdale, Jeremy Title: National Trading Standards -- Scams Team Review Summary: Mass marketing fraud (MMF) is broadly defined as a misleading or deceptive business practice in which uninvited contact and false promises are used to con people out of money. These could include lottery and prize draw scams, inheritance scams, get-rich-quick schemes and the selling of bogus products and services. Relatively inexpensive modes of communications, such as the Internet, telephone and direct mail, have transformed MMF activities in the UK and worldwide. National Trading Standards (NTS) established a Scams Team in 2012, initially as a pilot, hosted by East Sussex County Council Trading Standards. It was developed out of a desire to deal more effectively with MMF on a local, regional and national level, and to support victims. The Scams Team's activities are guided by five objectives: To identify victims of fraud To intervene and protect victims from further victimisation To investigate criminal activity To inform local authorities and agencies on how to work with and support scam victims To influence people at local, regional and national levels to take a stand against scams Goals During 2015 and 2016, NTS commissioned RAND Europe to undertake an independent review of the Scams Team to help inform its future development, delivery and effectiveness. The review included: An assessment of the Scams Team in its current form Recommendations for service improvements and future provision in the context of the Consumer Landscape Reforms, building on ideas generated by delivery partners Recommendations for existing measures and measure of consumer detriment Methodology The project team used four main sources to carry out the review: A review of academic and grey literature Interviews with partners, local authorities, Scams Team and NTS members A survey of all 200 local Trading Standards Services A review of documents and data provided by the Scams Team and NTS, which included data on 30,000 UK victims of MMF In addition, the researchers also held a 'Theory of Change' workshop with staff from the Scams Team, to examine how the Team's activities are expected to lead to the overall objectives, also to examine the Team's current methodology for measuring consumer detriment and savings. Findings Based on the analysis of data on 30,000 UK victims of MMF, it was found that these victims lost, on average, $6,744 to scams over their lifetime. The amount lost varied across victims, with the majority losing around $100 to $100; however, one per cent were found to lose more than $100,000. Older people tended to be the most prominent victims of MMF; however, no particular group should be isolated or ignored as potential victims. MMF was found to affect all members of society regardless of their age, class, occupation, socio-economic background, race or gender. Many perpetrators of MMF are based outside the UK, making it a truly global issue. In addition, these perpetrators are often linked to international organised crime, as they are selling MMF models internationally and also involved in other types of crime. There is clear evidence that the work of the Scams Team has helped to identify more victims of MMF and, through interventions with local Trading Standard Services, has helped to reduce the impact of MMF on these victims. The Scams Team has facilitated a coordinated national approach to tackling MMF in the UK, while also introducing a variety of innovative approaches and pilot projects. Based on the evidence available, the Scams Team appears to be delivering significant value for money. Through its work, it was estimated that the Team is saving $27 per $1 invested. Even when only taking into account the savings that the Scams Team is able to identify with a high degree of precision, these are still high - $12 per $1 invested over three years. Details: Santa Monica, CA; Cambridge, UK: RAND, 2016. 96p. Source: Internet Resource: Accessed September 13, 2016 at: http://www.rand.org/content/dam/rand/pubs/research_reports/RR1500/RR1510/RAND_RR1510.pdf Year: 2016 Country: United Kingdom URL: http://www.rand.org/content/dam/rand/pubs/research_reports/RR1500/RR1510/RAND_RR1510.pdf Shelf Number: 140263 Keywords: Consumer FraudFraudMass Marketing FraudScamsWhite Collar Crime |
Author: Cross, Cassandra Title: Improving responses to online fraud victims: An examination of reporting and support Summary: This study was developed to understand the needs of fraud victims through in-depth interviews conducted with 80 individuals from across Australia who lodged complaints of online fraud involving losses of $10,000 or more in the preceding four years to the Australian Competition and Consumer Commission's (ACCC) "Scamwatch" website or hotline. The aims of the study were: to document the various impacts and harms that victims of online fraud experience; to examine the reasons why some individuals choose to report online fraud to authorities, while others fail to make reports; and to determine how the support needs of this group of victims might best be met. The personal stories of those interviewed describe the financial impact of what occurred, as well as a range of emotional, psychological, interpersonal and physical impacts resulting from their victimisation. In addition, the barriers to reporting the crimes they suffered officially are documented. The report concludes by identifying what victims of online fraud really want in terms of support from government and non-government bodies, friends, relatives and counsellors. Research participants The 80 participants ranged in age from 30 to 77 years, with a mean age of 56. Forty-six (58%) were male and thirty-four (42%) were female. Participants identified as being from a wide range of countries of birth, predominantly Australia (68%), the United Kingdom (11%) and New Zealand (5%). Participants resided in Queensland, New South Wales, Victoria, South Australia and Western Australia. Financial impact Reported financial losses ranged from $10,000 to approximately $500,000. In many cases, participants were not able to indicate precisely how much money they had lost to online fraud, as often losses had been incurred over a lengthy period of time (up to several years) while in other cases, victims had simply lost track of how much money they had sent. Some victims, however, suffered substantial and debilitating financial impacts. Some of the current participants described losing all their superannuation, being 'sucked dry', having to pay off loans over periods of months or years, 'losing everything', losing their life savings, not being able to afford to buy food, and 'throwing good money after bad' by hiring lawyers or pursuing civil proceedings against perpetrators. Details: Sydney: Criminology Research Advisory Council, 2016. 90p. Source: Internet Resource: Accessed October 8, 2016 at: http://www.crg.aic.gov.au/reports/1617/29-1314-FinalReport.pdf Year: 2016 Country: Australia URL: http://www.crg.aic.gov.au/reports/1617/29-1314-FinalReport.pdf Shelf Number: 145372 Keywords: Corporate CrimeFinancial CrimesFraudOnline VictimizationScams |
Author: Great Britain. National Audit Office Title: Protecting consumers from scams, unfair trading and unsafe goods Summary: The UK consumer protection system has made some progress in the last five years, with some individual bodies making good impacts. The system as a whole, however, has not yet demonstrated that it provides value for money in protecting consumers from modern scams, unfair trading, and unsafe goods according to the National Audit Office. The Department for Business, Energy and Industrial Strategy (the Department) has overall responsibility for consumer policy but does not routinely calculate the total cost of the consumer protection system. The NAO, however, estimates it to have cost £165 million in 2015-16. Local Trading Standards services received an estimated £124 million and Citizens Advice received £18 million, Although there is limited robust data on the overall scale of consumer detriment, the NAO estimates that consumers lost at least £14.8 billion in 2015, of which £4.2 billion is estimated to be hidden and unreported detriment from problems such as mass marketing fraud and counterfeit goods. The Government has created opportunities for a more preventative approach to consumer protection. The Department has ensured better co-ordination across the landscape, in particular by bringing together the consumer protection bodies in the Consumer Protection Partnership, and integrating case management across the system. National Trading Standards, which was set up in 2012 following a previous NAO report, has made a good impact into consumer protection issues, having prevented £345 million worth of detriment to consumers since April 2014, with a cost-benefit ratio of around 12.6 to 1. Funding for this is still, however, small compared with the size of the problem, and annual budgeting prevents proper long-term planning. While the system has made progress at the national level, it is not keeping pace with the growth in online consumer fraud. The UK’s E-commerce market is now the third largest globally, with over a third of non-food retails sales being conducted online. A national e-crime team has been established but Trading Standards has lost e-crime expertise at the local level. Furthermore, the interaction between the consumer protection bodies and other government agencies tackling online consumer fraud is not yet well developed. The majority of law enforcement is carried out by local authority Trading Standards services. While the consumer protection bodies have improved data on consumer threats, significant gaps remain, with some local authorities having no or few intelligence logs. At the same time, Local Trading Standards have become increasingly small, as local authorities have moved funds to other areas. Overall, local Trading Standards have lost 56% of full-time equivalent staff since 2009, with 20 services in England having funding cut by over 60% since 2011. Some services now have only one qualified officer. Despite this lack of funding, Local Trading Standards teams are expected to enforce 263 different pieces of legislation for different government departments with little direction from government on the priority of these. Local Trading Standards teams are being incentivised to prioritise local issues, in particular safeguarding, with few resources available to either undertake enforcement cases or to organise services on national priorities. The changing nature of commerce has meant more consumer issues are occurring at national and international levels, however only 7% of local trading standards teams base their priorities on nationally-advocated ones. The Competition and Markets Authority is also making good impacts in addressing market-wide consumer issues and estimates that its consumer enforcement work generates at least £74 million of direct financial benefits to consumers annually for a cost of £6 million. Details: London: NAO, 2016. 54p. Source: Internet Resource: Accessed December 15, 2016 at: https://www.nao.org.uk/report/protecting-consumers-from-scams-unfair-trading-and-unsafe-goods/ Year: 2016 Country: United Kingdom URL: https://www.nao.org.uk/report/protecting-consumers-from-scams-unfair-trading-and-unsafe-goods/ Shelf Number: 140477 Keywords: Consumer FraudConsumer ProtectionCounterfeit GoodsScams |
Author: Jain, Juhee Title: Why People Fall Prey to Ponzi Schemes? - An Analysis of Attitudes, Behaviours, Demographics, and Motivations Summary: This research project seeks to analyse the demographics, motivation, behaviour patterns, and attitudes of victims of ponzi schemes in India. The project employs, chiefly, a survey based research approach and its main contribution would be providing pointers to the regulatory agencies for devising effective investor education programs as well as other recommendations which can be used to help curb the menace of ponzi schemes which is afflicting India. The study uses data collected through interviews and an online survey of victims of the INR20.0 billion (around GBP227.0 million) Gainbitcoin ponzi scheme recently unearthed in India. The data, for the research project, has been collected keeping in view all the relevant ethical considerations. Details: Leicester, England: De Montfort University, 2018. 133p. Source: Internet Resource Dissertation: Accessed May 30, 2019 at: https://www.researchgate.net/publication/328797929_Why_People_Fall_Prey_to_Ponzi_Schemes_An_Analysis_of_Attitudes_Behaviours_Demographics_and_Motivations_of_Victims_in_India Year: 2018 Country: India URL: https://www.researchgate.net/publication/328797929_Why_People_Fall_Prey_to_Ponzi_Schemes_An_Analysis_of_Attitudes_Behaviours_Demographics_and_Motivations_of_Victims_in_India Shelf Number: 156099 Keywords: Bitcoin Financial Crime Fraud India Ponzi Schemes Scams |