BUSINESS SCAMS

The Hon. B.V. FINNIGAN (15:09): My question is to the Minister for Consumer Affairs. Can the minister update the council regarding current consumer scams of which members and the South Australian public should be aware?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for the City of Adelaide) (15:09): I thank the honourable member for his important question. Indeed, the Office of Consumer and Business Affairs (OCBA) provides advice and warnings to the public in relation to a wide range of scams and get-rich-quick schemes, as well as other illegal pyramid-type schemes.

It is really the public's awareness and diligence around these get-rich-quick schemes that are important in preventing them from being ripped off, sometimes very badly. Warnings are usually published by a media release with the information on specific schemes available through the Consumer Affairs telephone advisory service and on OCBA's internet site. OCBA also publishes booklets providing information to consumers on how to spot scams and avoid getting caught.

One of the recent scams reported to OCBA is the fake government grant cold calls. These scammers claim to represent the Australian government. They cold call victims and offer grant services or grants themselves. The scammers request a fee of $199 to release grant funding. Sounds too good to be true? You are absolutely right—it is. The ACCC and the departments of infrastructure, transport, regional development and local government have issued scam alerts warning potential victims that the government does not cold call offering grants and does not charge a fee to release grant funds either.

Another is the pedigree puppy scam. There are reports of non-existent pedigreed puppies being advertised at low prices in newspapers and on classified websites. The seller claims that they live overseas and that it is necessary for the buyer to pay a fee to have the puppy transported. Payment is subsequently made via money transfer, but the puppy is never delivered. This type of scam is also common, I understand, with cars, boats, motorbikes and, more recently, horses and saddles as well. As you are a horseman, Mr President, and a lover of horses, I know that you will be particularly careful of that scam when you are looking for a saddle next time.

There is the Do Not Call Register scam. This involves telemarketers calling Australian consumers and requesting payment to list their telephone numbers on the Australian government's free Do Not Call Register. If you agree, any payment made will be lost, but you could also be putting your financial details and personal security at risk as well. Consumers who receive such a call should contact the administrators of the Do Not Call Register and the Australian Communications and Media Authority and make a complaint. Information provided will help prevent the scam. As members would be well aware, the Australian government's Do Not Call Register is, of course, free for anyone who wishes to register—no fees are required.

The Hon. R.I. Lucas: Speak louder and keep Russell awake, will you?

The Hon. G.E. GAGO: He needs to concentrate. When he closes his eyes, it helps him to concentrate and absorb the full extent of the information I am giving him.

Members interjecting:

The Hon. G.E. GAGO: It shows his intense interest.

The PRESIDENT: Order! I am sure the Hon. Mr Wortley is well aware of all the schemes.

The Hon. G.E. GAGO: I know he is listening, Mr President. Consumers should also be suspicious if they receive a colourful travel brochure in the mail which contains scratchy cards. At least one of the scratchy cards received will be a winner. The scam takes place when you contact the trader to claim your prize and then you are asked to provide payment for various fees via transfers. If the payment is made, the consumer does not receive their prize and will usually never see their money again.

There is also a mystery shopper scam that I should draw members' attention to. If job hunters see a mystery shopper job ad in the employment section of their local newspaper, they should be extremely wary, because it is likely to be a scam. I am advised that the unsuspecting job hunters are asked to send their CV to an overseas email address and, after doing so, they are sent American Express travellers cheques in US dollars, European dollars or British pounds.

The cheques, which are often forgeries, will generally be for a round sum of money such as $1,000 or $2,000. Recruits are then told to cash the cheques at financial institutions and take a percentage as a wage or commission. They are then asked to transfer the remaining cash back overseas. Anyone who has replied to a mystery shopper job scam and has been sent travellers cheques should not—I stress, not—cash them, as they may be committing an offence and they may also receive further emails pressuring them then to cash the cheques. They should immediately delete those emails and not respond. If any honourable members have concerns or constituents who may have concerns, they can simply contact OCBA for advice.