Con-artists swindle $150K from Aussies: Don't fall for these fake celebrity scams
Scammers are using images of popular celebrities to swindle Aussies out of almost $150,000.
From Cate Blanchett’s anti-ageing lotion to Eddie McGuire’s erectile dysfunction pills, unsuspecting people are being deceived by fake celebrity endorsements.
Since the start of the year, fake celebrity endorsements have increased by a huge 400 per cent.
The Australian Competition and Consumer Commission's (ACCC) Scamwatch website received almost 200 reports this year alone with the losses of victims totalling $142,000.
Those aged 45 years and older account for 63 per cent of victims of the celebrity scams, while women are also more likely than men to be deceived by the advertisements.
The scams appear on social media platforms as online advertisements or promotional stories and use the image and often fake quotes from a celebrity to give credibility to the product being sold.
Victims are then asked to hand over their credit card details to sign up for a “free trial” of the product, which either never turns up or has difficult contract terms to back out of.
Celebrities who have been exploited by scammers include Carrie Bickmore, Delta Goodrem, Kyle Sandilands, Lisa Wilkinson, Meghan Markle and Shark Tank’s Steve Baxter.
ACCC deputy chair Delia Rickard said most people who have fallen for the scam this year lost between $100 and $500, but one victim was swindled of more than $50,000.
Ms Rickard said tech giants, such as Facebook and Google, were responsible for not being diligent enough.
“Most of the reports to Scamwatch involve these scam advertisements running on Google ad banners or as ads in Facebook news feeds,” Ms Rickard said.
“These tech giants must do more to quickly suspend ads, as every time consumers click on a scam ad, they are at risk of losing money.”
Recently, Channel 9’s Sonia Kruger's image was used in a number of ads selling a facial cream.
“It’s a relief to see the ACCC step in with regards to this issue,” she told The Daily Telegraph.
“It’s very concerning that Australians are being duped into parting with their hard-earned money on the false belief that these products have been endorsed by Australian celebrities. Facebook and Google should block these ads.”
A Google spokeswoman said advertisements that violated its polices would be removed, while Facebook Australia and New Zealand’s head of communications, Antonia Sanda, said false and misleading ads are also being disabled.
“From January to March 2018 we took down 837 million pieces of spam, nearly 100 per cent of which we found and flagged before anyone reported it,” she said.
“We also disabled about 583 million fake accounts — most of which were disabled within minutes of registration.”
To avoid being caught up in a celebrity scam, the ACCC encourages all online shoppers to research a company before they hand over their details.
“It is vital to research and read independent reviews of the company. Consumers should verify celebrity endorsement of products from the celebrity’s official website or social media account,” Ms Rickard said.
The ACCC said if someone falls victim to a fake celebrity endorsement, they should contact their bank, arrange a chargeback and stop any further debits to their credit card.
Have you spotted any of these celebrity scams while scrolling online? Let us know in the comments below.