ACCC reports 2000 per cent increase in money being lost to fake charity scams in South Australia

South Australians donating to online crowdfunding sites are among dozens of victims to be duped by fake charity scams. The losses this year are already double that of 2019.

• Scammers are targeting bushfire victims in cold call con
• Woman pleads guilty to deceiving charities following fire

Bogus crowd-funding pages, including ones playing to people’s sympathies for victims of bushfires and the impacts of COVID-19, are driving huge increases in reports of scams – and the amount of money lost to them.

South Australians made 80 reports to the Australian Competition and Consumer Commission’s Scamwatch in the first six months of this year, compared with 77 for the whole of last year.

And the amount of money lost to fake charities to June 30 this year, $32,400, was already more than double last year’s $13,578.

The rise in scams has been linked to fake crowd-funding pages and has police warning that con artists will take advantage of any crisis to take money from charitable people.

The Australian Competition and Consumer Commission has also received reports of a rise in classic scams like cold calls and people pretending to be relatives of victims.

The ACCC’s Scamwatch received 77 reports of fake charities in 2019. In the first six months of 2020 there have been 80 reports of fake causes and $32,400 scammed.

“Of these, 16 reports from South Australia were related to bushfire fake charity scams, with no losses,” an ACCC spokeswoman said.

“Types of issues reported to Scamwatch include crowd-funding pages impersonating charities, receiving text messages and phone calls asking for donations and impersonating a relative of a victim and requesting money.”

A South Australian Police Cybercrime prevention spokesman said scammers take advantage of misfortune to find targets for attacks.

“Cybercriminals continue to evolve their tactics and methods to carry out scams,” the spokesman said.

“Unfortunately cybercriminals often leverage from significant events, such as the bushfires earlier this year and COVID-19, to reach potential victims who are willing to assist people in need.

“In times of crisis it is important to keep an eye out for fake charity scams. Scammers recognise that people want to help by giving to charities and will take advantage of their generosity.”

In the wake of the Cudlee Creek bushfire, which killed one person, destroyed more than 80 homes and devastated the Adelaide Hills, two people were arrested for falsely collecting donations.

The ACCC report also shows that ransomware and malware, forms of malicious software which siphon money from users, increased 1000 per cent in 2019.

In South Australia, 1277 people lost $5.76m in frauds and scams of all different varieties.

As is traditionally the case, investment scams accounted for the lion’s share of the losses, amounting to $2.64m.

The ACCC recommends double-checking the legitimacy of all charities before donating, while police advise people to be wary of people asking for unusual methods of payment, such as gift cards.