Scam Activity

The Hon. J.S. LEE (14:57): I seek leave to make a brief explanation before asking the Minister for Business Services and Consumers about the 'Targeting scams' report.

Leave granted.

The Hon. J.S. LEE: On 16 June this year the Australian Competition and Consumer Commission (ACCC) released their 'Targeting scams' report, which recorded that telephone calls were the most common scam in Australia during 2013, increasing by 13 per cent to 39,921. In addition, the commission received nearly 37,000 reports about online scams involving internet and email, representing increases of almost 47 per cent and 14 per cent, respectively. The report confirmed that over 7,000 South Australian consumers had lost almost $5 million due to scams. The most prominent scams were the advanced fee/up-front payment scams which cost 1,960 South Australian consumers over $1.6 million.

In addition to the information presented earlier by the minister saying that the government has released a Savvy Seniors guide, I wonder what additional measures has the government put in place to address scamming issues across the board for South Australian consumers. Also, what assistance has the government provided to help those who have been affected by the scams, particularly those suffering financial hardship? Furthermore, I wonder whether the minister has consulted with CBS and SAPOL about introducing a new policing and investigation system to safeguard vulnerable South Australian consumers from being cheated by scammers.

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (14:59): I thank the honourable member for her most important question, and her ongoing interest in these policy areas. Our investigation and enforcement operations within CBS are incredibly diligent. They operate in a way to continue to try to make the public more aware of their rights and responsibilities and educate both the consumers and service providers around their obligations.

I am advised that, in relation to the last financial year, 2013-14, enforcement activities relating to the ACL resulted in the issuing of 14 public warnings in relation to faulty products, itinerant traders and solar companies; 20 written warnings and two written assurances were received, and overall CBS issued 1,090 written warnings and 20 public warnings, 138 expiation notices and received 17 assurances.

There are a range of areas in which they have been very active, particularly around investigations into a solar company. Itinerant traders, particularly those which lay bitumen and such like: they have undertaken a range of activities in that space. Second-hand vehicle dealers is another area in which they have been very involved. They were involved with a joint operation with SAPOL into second-hand vehicle dealers failing to supply warranties to consumers, where SAPOL attended the location to help ensure that vehicles complied with the Road Traffic Act. There are a range of complaints that are at issue and that might result in prosecution.

A whole range of compliance operations have taken place. Product safety operations are also an area in which they have been very active. The area that has cost us the most in terms of scamming has been these online romance services, friendship chat lines, where relationships start. They particularly target older people who are looking for some companionship, the relationship flourishes and the person offers all sorts of things to the person and then, all of a sudden, is asking them for large amounts of money because a member of their family has become seriously ill or so that they can come out and meet and spend a holiday with the person. The scope is unlimited, but it usually results in asking the person for large amounts of money after cultivating a relationship with them.

A great deal of work has been done in this area as well. These sort of scams are notoriously difficult to prosecute or pursue because they are online and are often conducted from overseas. However, CBS works very hard in that space to make the public aware of those scams, and provides general information on how you might check out whether that person and site are really genuine. A great deal of work has been done in that space.