Scams cost Australia $1 billion

The largest survey of personal fraud ever undertaken in Australia found lottery and prize scams were the most prevalent, but money laundering requests and phishing - fraudulent requests for personal details - were also common. In 2007, personal fraud cost Australians $977 million, or an average loss of $2,156 per victim. Surprisingly, the real cost of fraud could be even higher, given experts believe only 25 per cent of cases are actually reported to the police.

More than 14,000 people from across the country participated in the survey, which Home Affairs Minister Brendan O'Connor said highlighted the need for greater consumer awareness. "The more they know, the less likely they are to fall victim," he said.

There were generally four types of scams - bogus lottery wins, money transfer scams, phishing and fake "get rich quick" schemes. But scams also took other forms, including fake job offers and inheritance scams, as well as romance scams, involving fake profiles on matchmaking sites. Most were received via email or the post.

About five per cent of those exposed to a scam ended up being duped, the survey, Consumer fraud in Australia: costs, rates and awareness of the risks in 2008, found. Lotteries were the most successful rorts, with about 0.5 per cent of respondents becoming a victim.

Mr O'Connor urged Australians to be more open about scams and report them freely. "It is important to encourage greater reporting of consumer fraud, to raise community awareness of emerging and widespread threats," he said.

The government is also trying to improve the situation for consumers, by toughening up laws that would see scammers facing fines of up to $1.1 million. Meanwhile, university students on the hunt for work during the school holidays are the latest targets of money launderers.

The Australian Federal Police urges students to beware of any unsolicited emails promising jobs or quick cash, that end up in a request to launder dirty money. It could lead to up to 20 years in prison, even if you were duped.

University students were especially vulnerable to this type of scam because of their need to work, federal police believe.

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