ACCC leads global crackdown on online scams

The Australian Competition and Consumer Commission will today launch a sweep of websites making misleading or fraudulent claims as part of an international effort to stamp out online scams.

In partnership with the International Consumer Protection and Enforcement Network, the ACCC will help uncover and disrupt websites that are offering customers a “quick fix” for problems that are actually scams.

ICPEN president and acting ACCC chairman Peter Kell says the focus will be on websites that are offering solutions to concerns about the economic downturn. The crackdown will use predetermined search terms such as “business opportunity” and “unclaimed money” to produce a list of websites to investigate.

“The sweep aims to disrupt scammers from exploiting the global financial crisis or
other economic pressures to mislead consumers,” Kell said.

“When people are in financial hardship they may be more likely to take a chance on a scheme that promises to help them out of a bind, whether it relates to employment, easy money, or fixing a health problem. However, scammers will take their money regardless of their personal circumstances.”

The ICPEN includes countries such as Austria, the United States, New Zealand, France, Germany, Denmark, Greece, Spain and Switzerland as members, with the sweep operating in all member countries.

“As internet fraud moves beyond international boundaries, so too must consumer protection agencies. The annual sweep enables consumer protection agencies to collaborate in the fight against these frauds,” Kell said.

“By the end of the sweep thousands of websites will be inspected and suspicious sites will be flagged for further investigation and follow-up action. As a result of the sweep the agencies aim to disrupt the activities of scammers.”

Kell says the crack down comes after 37,000 websites and 18,000 spam messages were tracked for investigation last year as part of an international effort to stamp out scams.

“Cross-border cooperation can and does bring about results. Recently the ACCC worked with US counterparts to get refunds for consumers misled by a website claiming to sell designer brands. This year the ACCC has also been successful in going through the courts to take down a series of misleading websites selling medical eBooks.”