Buying or selling scams

Buying and selling scams are highly variable and change over time as scammers find new ways to manipulate the buying or selling process that we all engage with. Many of these scams can be foiled if we pay attention when we are buying or selling anything. It is also important to be aware of some of the key indications of these scams.

Australians lost over 37 million dollars to buying or selling scams in 2020, although this is only a small percentage of the real loss incurred. Many scams go unreported to ScamWatch or Police because their victims just put it down as a lose and move on. However, it is always important to report all scams, especially when there is a financial loss. You may not always be able to recover the money you have lost but these reports allow police and consumer agencies to be aware of new and emerging scams and target them.

Report all scams to ScamWatch at: https://www.scamwatch.gov.au/

If you have incurred a financial loss report it also to your local Police. Please also let us know about the scam here at NT Consumer Affairs on (08) 8999 1999 or 1800 019 319 or at consumer@nt.gov.au

Buying and selling scams come in many forms. Listed below are some of the more common.

• Classified scams trick online shoppers on classified websites into thinking they are dealing with a legitimate contact but it is actually a scammer.
• False billing scams request you or your business to pay fake invoices for services such as directory listings, advertising, domain name renewals or office supplies that you did not order.
• Health and medical product scams often try to sell discounted healthcare products at low prices that you never end up receiving. These scammers also make false promises about health products, medicines and treatments that are not supported by medical science.
• Mobile premium services involve scammers creating fake SMS competitions or trivia scams to trick you into paying extremely high call or text rates when replying to an unsolicited text message on your smart phone.
• Online shopping scams involve scammers pretending to be legitimate online sellers, either with their own fake website or via a fake ad on a genuine retailer website.
• Overpayment scams work by getting you to ‘refund’ a scammer who claims to have sent you too much money for an item you are selling.
• Psychic and clairvoyant scams are designed to trick you into giving away your money, usually offering ‘help’ in exchange for a fee.

Warning signs

Buying and selling scams are highly variable. Below are some of the warning signs to look for. Remember that you may be able to spot a romance scam easily but be sure to discuss this form of scam with family and friends. Scammers often target people that are vulnerable or people that are going through a vulnerable period of their life.

• The classified ad promotes products, services or rental properties advertised at very low prices, often lower than comparable items advertised on the same and other websites.
• The seller claims to be unavailable (e.g. they are travelling or have moved overseas) and insists on payment prior to arranging for delivery of the goods.
• The potential buyer is willing to purchase your item without having viewed it in person – even if you are selling an expensive item such as a car.
• A potential overseas buyer is interested in purchasing your item despite it being a commonly available item in their home country (e.g. a car or a couch). Often the shipping costs would far outweigh the cost of the item itself.
• You receive an invoice or phone call from a business directory or other publication you’ve never heard of, ‘confirming’ your entry or advertisement. You recognise the listing as one you put in a different publication.
• A product is advertised at an unbelievably low price, or advertised to have amazing benefits or features that sound too good to be true.
• The other party insists on immediate payment, or payment by electronic funds transfer or a wire service. They may insist that you pay up-front for vouchers before you can access a cheap deal or a give-away.
• Somebody makes an offer to buy something you have for sale and pays you more than the agreed price with a cheque or credit card.
• You receive an email from the scammer claiming that they have made payment but the amount is being held until you have forwarded on the extra amount.
• You receive an email or letter out of the blue from somebody claiming to be a psychic or clairvoyant. This person claims to have some sort of special insight into your life.
• They may claim you have been cursed or jinxed and offer to remove this themselves or give you the name of someone else who can do so.
• You may be offered a good luck charm, the secret to enormous wealth, magic potions or winning lottery numbers for a fee.

How to Protect Yourself

The best way to protect yourself is to never 100% trust someone you have yet to meet. Always look for inconsistences and do not transfer money directly into a strangers bank account.

Always remember:

• if the advertised price of a good, service or rental property looks too good to be true, it probably is. If you have any doubts, don't go ahead with the deal.
• don’t trust the legitimacy of an ad just because it appears in a reputable newspaper or classifieds website – scammers post fake ads in these too.
• never agree to any business proposal on the phone: always ask for an offer in writing. If you are unsure about any part of a business offer, ask for more information or seek independent advice.
• always check that goods or services were both ordered and delivered before paying an invoice, and always read the fine print carefully.
• check if the website or social media page has a refund or returns policy, and that their policies sound fair. The better online shopping and auction sites have detailed complaint or dispute handling processes in case something goes wrong.
• when using retail websites, find out exactly who you are dealing with. If it is an Australian company, you are in a much better position to sort out the problem if something goes wrong.
• never send money on for a customer. This might be money laundering, which is a crime.
• use secure payment methods you are familiar with only. Avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer, international funds transfer, pre-loaded card or electronic currency, like Bitcoin. It is rare to recover money sent this way.
• if you have been sent a cheque for more money than the agreed price, send it back and ask for another cheque with the correct amount. Do not agree to repay the difference until you are certain that the cheque has cleared.
• if you are approached by a psychic or clairvoyant and they tell you that you are in danger, have bad luck or are cursed, be very cautious – their solution is likely to be a scam.
• never send any money, credit card or other personal details to these scammers, and never by email. Responding for any reason only indicates you're interested and you could end up with many more potential scam letters and emails in the future.
• if you want to engage the services of a psychic or clairvoyant, ensure you know the total cost of anything you order and exactly what you will receive. Ask if there are any conditions and ongoing or hidden costs.