Retiree loses $110K in life savings to scam using Gina Rinehart’s image
- Replies 25
Retirement should be a time of relaxation and enjoyment, a reward for decades of hard work.
But for one Queensland retiree, the golden years turned to lead when he lost nearly all his life savings to a cunning online investment scam.
The scam was so egregious that it caught the attention of mining magnate Gina Rinehart, who has since taken action against the social media giant where the scam proliferated.
Gary, a former auto-electrician, was looking to supplement his superannuation and thought he had found a golden opportunity when he came across an online trading scheme on Facebook.
The ads featured prominent Australian figures like Gina Rinehart, Twiggy Forrest, and Clive Palmer, lending an air of credibility to the scheme.
After seeing the ads repeatedly over several weeks, Gary was convinced of their legitimacy, thinking, 'They must be genuine because they would have been taken down by now.'
The trading platform, Rapidnex, appeared to be endorsed by Rinehart, and Gary even received a fake email from Hancock Prospecting confirming his account activation.
Despite his due diligence, checking the company's Australian Business Number (ABN) and not finding any immediate red flags, Gary was duped.
He invested a total of $109,055 over five transactions, believing he was watching his money grow in a cryptocurrency account.
Unfortunately, Rapidnex has been identified by the Australian Securities & Investments Commission (ASIC) as a potential imposter entity, allegedly utilising the information of another Australian company bearing a similar name.
The harsh reality hit when Gary attempted to withdraw funds and discovered his account was empty.
‘It was all my savings bar a couple of thousand I kept in my savings account. Nearly all of my super—luckily, I did keep some of my super but I did take a lot out,’ Gary stated.
The devastating loss meant that his lifestyle had to change drastically, with holidays and other luxuries now out of reach.
Gina Rinehart's team has taken a strong stance on the issue, directly addressing Meta CEO Mark Zuckerberg and demanding accountability for the scams proliferating on Facebook.
They argued that Zuckerberg should compensate the victims of these scams, given the platform's role in their dissemination.
Rinehart's team has noted a stark contrast in the number of scams on Facebook compared to those on platforms owned by Elon Musk, suggesting that more could be done to prevent such fraudulent activities.
‘In our view, Mark Zuckerberg should be held accountable given his lack of action, and pay all those who have lost money on scams he has publicised,’ a spokesperson stated.
‘We have several staff trying to cope with getting these scams taken down, and also rely on people writing in, in case our staff miss any.’
Andrew 'Twiggy' Forrest has also been proactive, bringing criminal charges against Meta and suing the company in California, USA.
The Australian Competition and Consumer Commission (ACCC) has similarly launched legal proceedings against Meta for its role in publishing scam ads in 2022.
Meta has defended its practices, stating that it removed hundreds of millions of fake accounts and invests in tools to help users report and avoid scams.
A Meta spokesperson shared: ‘In the final quarter of 2023, we removed 691 million fake accounts globally. We also invest in tools on our services that allow people to report scams and to warn people if they are contacted by someone they don’t know.’
‘We partner with local organisations to educate consumers to spot and avoid scams and bring enforcement action against scammers,’ they added.
Gary's experience is a cautionary tale for everyone. He said that he considers himself ‘pretty lucky’ to still have money left.
‘There are a lot of people worse off than me,’ he said.
He is advising other Australians to exercise caution when investing online, to avoid falling victim to the same scam.
‘I wouldn’t believe anything that’s on Facebook and I wouldn’t be giving any money to any company or business online,’ he advised.
‘If you want to invest, do it with a broker, face to face in your city. I don’t even answer the phone anymore. If I see a number I don’t recognise, I just don’t answer it,’ he added.
This is not the first time cybercriminals have used the images of popular personalities to target online users.
TV veteran Tracy Grimshaw has previously warned fans about online scammers using her image and voice in a fake diet gummy ad on social media.
'Let me say it again. **This is a scam*** I’m not flogging gummies. I have zero sponsorship or advertising deals with anybody. Zero. So I’m not flogging anything. Ever,' her post read.
She also acknowledged Gina Rinehart, and famed Australian entrepreneur, Dick Smith, in her post.
Have you or someone you know encountered a similar scam? Share your experiences in the comments below to help raise awareness within our community.
But for one Queensland retiree, the golden years turned to lead when he lost nearly all his life savings to a cunning online investment scam.
The scam was so egregious that it caught the attention of mining magnate Gina Rinehart, who has since taken action against the social media giant where the scam proliferated.
Gary, a former auto-electrician, was looking to supplement his superannuation and thought he had found a golden opportunity when he came across an online trading scheme on Facebook.
The ads featured prominent Australian figures like Gina Rinehart, Twiggy Forrest, and Clive Palmer, lending an air of credibility to the scheme.
A retiree fell victim to a scam that used Gina Rinehart’s image. Image source: ginarinehart.com.au
After seeing the ads repeatedly over several weeks, Gary was convinced of their legitimacy, thinking, 'They must be genuine because they would have been taken down by now.'
The trading platform, Rapidnex, appeared to be endorsed by Rinehart, and Gary even received a fake email from Hancock Prospecting confirming his account activation.
Despite his due diligence, checking the company's Australian Business Number (ABN) and not finding any immediate red flags, Gary was duped.
He invested a total of $109,055 over five transactions, believing he was watching his money grow in a cryptocurrency account.
Unfortunately, Rapidnex has been identified by the Australian Securities & Investments Commission (ASIC) as a potential imposter entity, allegedly utilising the information of another Australian company bearing a similar name.
The harsh reality hit when Gary attempted to withdraw funds and discovered his account was empty.
‘It was all my savings bar a couple of thousand I kept in my savings account. Nearly all of my super—luckily, I did keep some of my super but I did take a lot out,’ Gary stated.
The devastating loss meant that his lifestyle had to change drastically, with holidays and other luxuries now out of reach.
Gina Rinehart's team has taken a strong stance on the issue, directly addressing Meta CEO Mark Zuckerberg and demanding accountability for the scams proliferating on Facebook.
They argued that Zuckerberg should compensate the victims of these scams, given the platform's role in their dissemination.
Rinehart's team has noted a stark contrast in the number of scams on Facebook compared to those on platforms owned by Elon Musk, suggesting that more could be done to prevent such fraudulent activities.
‘In our view, Mark Zuckerberg should be held accountable given his lack of action, and pay all those who have lost money on scams he has publicised,’ a spokesperson stated.
‘We have several staff trying to cope with getting these scams taken down, and also rely on people writing in, in case our staff miss any.’
Andrew 'Twiggy' Forrest has also been proactive, bringing criminal charges against Meta and suing the company in California, USA.
The Australian Competition and Consumer Commission (ACCC) has similarly launched legal proceedings against Meta for its role in publishing scam ads in 2022.
Meta has defended its practices, stating that it removed hundreds of millions of fake accounts and invests in tools to help users report and avoid scams.
A Meta spokesperson shared: ‘In the final quarter of 2023, we removed 691 million fake accounts globally. We also invest in tools on our services that allow people to report scams and to warn people if they are contacted by someone they don’t know.’
‘We partner with local organisations to educate consumers to spot and avoid scams and bring enforcement action against scammers,’ they added.
Gary's experience is a cautionary tale for everyone. He said that he considers himself ‘pretty lucky’ to still have money left.
‘There are a lot of people worse off than me,’ he said.
He is advising other Australians to exercise caution when investing online, to avoid falling victim to the same scam.
‘I wouldn’t believe anything that’s on Facebook and I wouldn’t be giving any money to any company or business online,’ he advised.
‘If you want to invest, do it with a broker, face to face in your city. I don’t even answer the phone anymore. If I see a number I don’t recognise, I just don’t answer it,’ he added.
This is not the first time cybercriminals have used the images of popular personalities to target online users.
TV veteran Tracy Grimshaw has previously warned fans about online scammers using her image and voice in a fake diet gummy ad on social media.
'Let me say it again. **This is a scam*** I’m not flogging gummies. I have zero sponsorship or advertising deals with anybody. Zero. So I’m not flogging anything. Ever,' her post read.
She also acknowledged Gina Rinehart, and famed Australian entrepreneur, Dick Smith, in her post.
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