To print this article, all you need is to be registered or login on Mondaq.com.
Many scammers out of reach as financial impact of scams
rises
Every year Australians lose millions of dollars to dating and
other online scams, as people are lured into handing over money to
scammers who create fake online profiles targeting people looking
for love.
Scamwatch, operated by the Australian Competition and Consumer
Commission, says $324 million was lost to scams in 2021, mostly to
investment and dating or romance scams. It is even worse in 2022,
with $167 million lost in the first three months of the year,
mostly to investment scams.
In Australia, people aged 25 to 34 and men lost the most through
scams. (Please see Scam statistics, ACCC Scamwatch.)
Scamwatch says very little of the scammed money is ever
recovered. Even if the scammers are identified and tracked down,
the vast majority are overseas, so it is extremely difficult for
Australian authorities to take action against them.
Penalties in Australia for scammers
If identified and found inside Australia, scammers can face
charges under several laws, with criminal penalties ranging from
ten to twenty years, depending on the scale of the proceeds of
crime.
There may be breaches of Australian Consumer Law, which protects
people from false and misleading advertising. Some scams may be
criminal offences, such as fraud, where a person deliberately sets
out to deceive someone.
An online scam may also come under the law as a type of
cybercrime. This includes hacking, fraud, identity theft, attacks
on computer systems and illegal or prohibited content.
Legal options for scam victims
A scam victim may be able to bring a private action in the
Federal Court. If successful, the remedies could include damages,
injunctions and other orders.
However, this is likely to be an expensive and lengthy procedure
and it would be best to get legal advice before embarking on this
path.
Australian jailed for involvement in romance scam
One scammer who did face justice in Australia was a woman jailed
in Western Australia for 12 months, for helping a Nigerian con man
fleece more than $12,700 from a man in Germany.
It started with her being a target of the fraudster, but when
she challenged him, he persuaded her to help him extract money from
the German.
The German contacted Australian authorities and the woman was
charged with dealing with the proceeds of crime. A reparation order
was made to the victim. (Please see Australian jailed for her role in international
romance scam, CDPP, 2018-19.)
Proceedings against Facebook owner Meta for scam ads
In what is likely to be a far bigger case, the ACCC recently
instituted Federal Court proceedings against Facebook owner Meta,
alleging the global giant engaged in false, misleading or deceptive
conduct by publishing scam advertisements featuring prominent
Australian public figures. (Please see ACCC takes action over alleged misleading conduct
by Meta for publishing scam celebrity crypto ads on
Facebook, ACCC, 18 March 2022.)
The ACCC alleges that this conduct was in breach of Australian
Consumer Law, in that Meta aided and abetted or was knowingly
involved in false or misleading conduct by the advertisers on its
platform.
Anneka Frayne
Criminal law
Stacks Law Firm
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Criminal Law from Australia
