‘Underground economy’ of counterfeit phones rips off vulnerable Aussies: ‘I was completely gutted’
- Replies 9
In today's digital age, smartphones have become an indispensable part of our lives, keeping us connected with the world at any time and from anywhere.
For many, a smartphone is not just a luxury but a necessity for staying in touch with family, managing health apps, and even for security purposes.
However, the convenience of technology comes with its own set of risks, one of which is the alarming rise of counterfeit smartphones being sold by large criminal networks in Australia.
Courtney Smith's story is a cautionary tale for all of us. The single mother, eager to upgrade her phone, used her long service leave payout to purchase what she believed was a reasonably priced second-hand Samsung Galaxy.
‘It was new in the box, it was sealed, and the story is that [the seller] bought it for his ex-girlfriend and they separated,’ Smith said.
‘It was all pretty believable, I'm usually pretty switched on with this stuff.’
However, after spending $1,000 on what she thought was a top-of-the-line device, Courtney was devastated to discover it was a fake when she got home.
The poor screen quality, outdated operating system, and subpar camera were telltale signs that she had been scammed.
‘I was completely gutted,’ she said.
‘Unless you were buying a $70 phone, you wouldn't find the kind of technology and slowness that it has on it these days.’
‘It makes it hard in this day and age to trust people,’ she added.
‘I've had to pay another $700 to get my old phone repaired since, so essentially I'm down nearly $2,000 from just a shit experience.’
This issue is not isolated to Courtney or her hometown of Albury. Senior lecturer at the University of Melbourne in cybersecurity, Dr Shanaan Cohney, has highlighted that fake phones are being sold across Australia.
These scams often peak around shopping seasons, such as Christmas, when people are looking for good deals on gifts.
‘These are large criminal organisations that are typically building and then on-selling these devices before they eventually reach the consumer,’ Dr Cohney said.
‘By purchasing one of these, you end up supporting that ecosystem inadvertently.’
These criminal organisations are not just a couple of individuals looking to make a quick buck; they are large networks with a chain of production, wholesale, and retail operations. By buying a counterfeit phone, consumers inadvertently support this illegal ecosystem.
‘There'll be one party manufacturing them, another that is wholesaling them, and eventually individual lower-level criminals will be the retailers scamming individual people out of their hard-earned money,’ Dr Cohney said.
Dr Cohney warned that the prevalence of online marketplaces and the low cost of producing such phones contribute to the problem.
Experts like Dr Cohney and Kathy Sundstrom, the National Outreach Manager at the cyber support service ID Care, advise taking several precautions to avoid falling victim to these scams.
‘If the profile looks fake, it's probably fake,’ Dr Cohney said.
‘I would definitely encourage anyone purchasing electronics to actually try them live before completing a transaction.’
‘I actually have myself been similarly scammed...so once bitten, twice shy.’
Since May, Sundstrom said ID CCare had received an average of 18 calls a month from people reporting scams with premium phone sales.
‘Not everyone even receives a dodgy phone, they may pay the money and end up with nothing,’ she said.
‘Even more concerning though is that many fake sellers are also harvesting driver licences from victims, and then recycling them to appear legitimate to future victims.’
‘People should never provide their driver's licence details when buying something on Facebook Marketplace or Gumtree. It creates another world of pain when a person's identity is compromised.’
Australia's consumer watchdog, the Australian Competition and Consumer Commission (ACCC), urged consumers to exercise due diligence when purchasing from individuals on online marketplaces.
‘Consumers should think carefully before purchasing from an individual on an online marketplace, and check things like reviews of the seller or how long their profile has existed for,’ an ACCC spokesperson said.
‘Most online marketplaces also have a function that allows consumers to report a seller... [people] may also wish to enquire with their bank about the potential to recover their funds.’
Have you encountered a similar situation? How did you manage the situation, and was the booking removed promptly after you reported it? Share your stories and experiences in the comments below.
For many, a smartphone is not just a luxury but a necessity for staying in touch with family, managing health apps, and even for security purposes.
However, the convenience of technology comes with its own set of risks, one of which is the alarming rise of counterfeit smartphones being sold by large criminal networks in Australia.
Courtney Smith's story is a cautionary tale for all of us. The single mother, eager to upgrade her phone, used her long service leave payout to purchase what she believed was a reasonably priced second-hand Samsung Galaxy.
‘It was new in the box, it was sealed, and the story is that [the seller] bought it for his ex-girlfriend and they separated,’ Smith said.
‘It was all pretty believable, I'm usually pretty switched on with this stuff.’
Courtney Smith believed she was buying a legitimate second-hand Samsung Galaxy. Credit: Shutterstock
However, after spending $1,000 on what she thought was a top-of-the-line device, Courtney was devastated to discover it was a fake when she got home.
The poor screen quality, outdated operating system, and subpar camera were telltale signs that she had been scammed.
‘I was completely gutted,’ she said.
‘Unless you were buying a $70 phone, you wouldn't find the kind of technology and slowness that it has on it these days.’
‘It makes it hard in this day and age to trust people,’ she added.
‘I've had to pay another $700 to get my old phone repaired since, so essentially I'm down nearly $2,000 from just a shit experience.’
This issue is not isolated to Courtney or her hometown of Albury. Senior lecturer at the University of Melbourne in cybersecurity, Dr Shanaan Cohney, has highlighted that fake phones are being sold across Australia.
These scams often peak around shopping seasons, such as Christmas, when people are looking for good deals on gifts.
‘These are large criminal organisations that are typically building and then on-selling these devices before they eventually reach the consumer,’ Dr Cohney said.
‘By purchasing one of these, you end up supporting that ecosystem inadvertently.’
These criminal organisations are not just a couple of individuals looking to make a quick buck; they are large networks with a chain of production, wholesale, and retail operations. By buying a counterfeit phone, consumers inadvertently support this illegal ecosystem.
‘There'll be one party manufacturing them, another that is wholesaling them, and eventually individual lower-level criminals will be the retailers scamming individual people out of their hard-earned money,’ Dr Cohney said.
Dr Cohney warned that the prevalence of online marketplaces and the low cost of producing such phones contribute to the problem.
Experts like Dr Cohney and Kathy Sundstrom, the National Outreach Manager at the cyber support service ID Care, advise taking several precautions to avoid falling victim to these scams.
‘If the profile looks fake, it's probably fake,’ Dr Cohney said.
‘I would definitely encourage anyone purchasing electronics to actually try them live before completing a transaction.’
‘I actually have myself been similarly scammed...so once bitten, twice shy.’
Since May, Sundstrom said ID CCare had received an average of 18 calls a month from people reporting scams with premium phone sales.
‘Not everyone even receives a dodgy phone, they may pay the money and end up with nothing,’ she said.
‘Even more concerning though is that many fake sellers are also harvesting driver licences from victims, and then recycling them to appear legitimate to future victims.’
‘People should never provide their driver's licence details when buying something on Facebook Marketplace or Gumtree. It creates another world of pain when a person's identity is compromised.’
Australia's consumer watchdog, the Australian Competition and Consumer Commission (ACCC), urged consumers to exercise due diligence when purchasing from individuals on online marketplaces.
‘Consumers should think carefully before purchasing from an individual on an online marketplace, and check things like reviews of the seller or how long their profile has existed for,’ an ACCC spokesperson said.
‘Most online marketplaces also have a function that allows consumers to report a seller... [people] may also wish to enquire with their bank about the potential to recover their funds.’
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