Charity Scams
Pyramid Schemes
Health and Medical Scams
Online Shopping/Auctions and Classifieds Scams
Lottery,Sweepstakes and Competitions Scams
100
What is a Charity Scam?
Fake organisations which are created in response to recent natural disasters.
100
Define the word, 'scam'.
An illegal business practice, a dishonest scheme or an act of fraud.
100
What are health and medical scams?
Scams that try to make money off people who are worried about their health, through miracle cures, weight loss scams and fake online pharmacies.
100
What are some examples of online shopping and classifieds scams?
Answers may vary, but some examples are: -Putting a genuine looking advertisement, while in reality, the ad is fake. -Purchasing something online, but is sent something useless or nothing at all.
100
What are lottery, sweepstake or competition scams?
This is where the victim is convinced that they have won a large sum of money in a competition they never entered.
200
Name 4 warning signs which tell a person that they have been encountered by a charity scam.
- The person does not have a genuine identification - They will not give any specific details such as phone numbers and address - They do not give you a receipt. - The person is sensitive when asked what an organisation does.
200
What are pyramid schemes?
Pyramid schemes are a type of scam which are very common in society. These scams often seen enticing and have a large incentive for participation.
200
A product tells you that it is effective in curing a wide range of problems. What does this mean?
This means that the product is most likely to be a scam.
200
You have been wanting a toy teddy bear since forever, and you see the cutest one online on a shopping site. The seller tells you that they want you to send them the money immediately via another internet site instead of the shopping site because it would be quicker and more efficient. Should you go to the other website?
NO.
200
What do scammers claim the fees the victims send to them are for?
They claim the fees are used for: - Courier costs - Insurance costs - Government taxes - Bank fees
300
How do we prevent ourselves from getting in a situation with Charity Scams? Name at least 3 Reasons.
- Confront the organisation to confirm that it is real - Never rely on specific phone numbers or addresses as they tend to be fake and could be impersonating a real charity or cause. - Never release personal details such as credit card details or online account details, unless it is a trusted source. - Research is the Charity is a real organisation. - If the collector is reluctant to give out this information, find another way to contribute. - Always do research on the charity to see if it is a legitimate one
300
Name some real life examples of pyramid schemes
Some examples could include: -Chain letters/emails where you will supposedly have bad luck if you do not forward an email to a number of people in a set amount of time -Facebook games where you are encourage to invite people to gain points However, these are only mild cases of pyramid schemes. There are organisations out there which focus of targeting people to join these schemes as their only source of income.
300
What does 'fly by night' nature mean?
Secretive and shady nature.
300
Give an example of an auction/shopping/classifieds scam. (A made-up scenario)
Answers may vary. - The seller may make "dummy" bids to make the price of their product higher. - If you are selling a product, a "consumer" may make a very low bid, and then make a very high bid, then drop the high bid out of the auction, making the low bid win the auction. - Genuine looking ads that use other companies' names, photos and informations that are actually scams are put on websites.
300
How successful are lottery scams?
Lottery scams are the second most successful type of scam known, having a 5.8 success rate.
400
Fill in the Gaps Since 1. ______________ a new law called the Australian Consumer Law. This law states that consumers have the same protection and businesses have the same 2.___________ and 3.___________ across Australia to 4.__________ supplies, or 5._________ selling. Misleading Conduct is when 6.______________________________.
1. January 1st, 2011 2. obligations 3. responsibilities 4. unsolicited 5. Pyramid 6. a person gives a deceiving impression towards the audience, for example, who the donations somebody is giving, is actually for
400
What are the warning signs of pyramid schemes?
Some warning signs include: large up-front costs, being , reassured that it is a fool-proof method of 'getting rich, quick' and other incentives which seem 'too good to be true'.
400
What should you always do to before purchasing a health product online?
- Research the product - Check with your health care professional - Make sure the company has their telephone number and address on their website so if anything goes wrong you can contact them
400
What are some warning signs of an online shopping scam?
-The product is advertised at a very low price. -The seller or any initial bidders have a very poor rating on an auction site. -The other party wants you to complete the sale outside of the auction site ( since if you do this, you lose any protections that the site operator offer to their users). -The other party wants immediate payment, or payment by electronic funds transfer or a wire service. -The online shopping website does not provide accurate information about privacy, terms and conditions, or contact details.
400
What are some possible ways consumers can protect themselves from lottery scams?
Consumers can: - Keep their details safe - Delete possible scams - If it seems to be too good to be true don't trust it - Never respond to suspicious messages
500
Its 2009, and you've seen the Victorian Bushfires, there are many charities and organisations willing to help. You want donate some money, what do you do? a) Just give them what they ask for b) There are other things you should do before giving me. If there are, explain them in order.
B) 1. You must ask them the details of the charity such as name, address and phone number. 2. Go Home and research if the charity is legitimate. 3. NEVER release any details to the organisation if you have not confirmed if it is real. 4. Ask friends or family to see if they have heard of the organisation 5. If they are real, confront the organisation and always ask for a receipt after you have donated. 6. If they pressure you into donating, or make you feel bad, do not contribute. 7. Happily contribute a reasonable amount to the charity after you have checked their legitimacy.
500
Explain how the law is able to protect you against pyramid schemes/scams in general.
The Australian Consumer Law (ACL), states that consumers have protection against businesses who do not fulfill their legal obligations and responsibilities. You are able to seek protection if: - They participate in misleading conduct - Misleading representations - Unconscionable conduct - Unsolicited supplies - Pyramid Selling However, keep in mind that if you participate in a pyramid scheme, you are also partaking in something illegal.
500
What does the Australian consumer law say about misleading or deceptive conduct?
It says that scammers are not allowed to accept the money if they are not planning to deliver goods or services. Also scammers cannot make false testimonials. Whether its about: - age - quality - sponsorship - approval - price
500
What should you do if you have been scammed? (Online Shopping and Auction scams)
Contact your bank account and ask them to cancel the transfer. If that is not possible, suspend your account, and obtain new account details to hinder the scammer from obtaining even more money from you.
500
When a victim earns the message saying they won the lottery, what are some of the ways they apparently became the winner?
The victim is told either that it was an international lottery, an e-mail lottery, or a random pick of winner.
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