Credit card users warned about cost of web scams

Monday 01 March 2010

Article by Mozo

Credit card users need to be cautious when using the web, a new report has warned.

According to the Australian Competition and Consumer Commission, Australians have lost around $70 million to online scams in the past year, with almost 20,000 people becoming targets of fraud due to "emotional decision making".

However, the real cost of fraud could be much higher as people are often reluctant to come forward if they have fallen victim to a scam.

The majority of the schemes involved a "mass-marketed advance fee," where consumers pay costs up front for a product that is never supplied, while other popular scams revolve around donation sites.

"Regardless of age, gender, education or income level, any consumer can be scammed," the report warned.

"Everyone is vulnerable."

Earlier this year, the taxi industry launched a crackdown on drivers who scam passengers that use credit cards as payment, reported the Herald Sun.

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