Retiree loses $110K in life savings to scam using Gina Rinehart’s image

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.


IMG_20210919_155634.jpeg
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.
Key Takeaways
  • A retiree lost nearly $110,000 in superannuation after falling for an online investment scam using the image of Gina Rinehart.
  • The scam advertised on Facebook appeared legitimate to the retiree due to the presence of well-known Australian figures and the duration it stayed on the platform.
  • Gina Rinehart's team has directly contacted Meta CEO Mark Zuckerberg, urging him to take action against the widespread scams and to take responsibility for those affected.
  • The mining magnate Andrew 'Twiggy' Forrest has taken legal action against Meta for allowing scam ads featuring his image, while Meta claims to actively remove fake accounts and scams using various techniques, including machine learning.
Have you or someone you know encountered a similar scam? Share your experiences in the comments below to help raise awareness within our community.
 
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I see these ads multiple times a day, and flag them to facebook, we shouldn't be the ones monitoring them. If you see one report it, don't just scroll by. A good checker is click on the button that says "Apply now" and other buttons, let it take you to where it shows a web site, try clicking on any of the menu buttons, if it goes nowhere then it's a scam. I've found a lot of them are "News" limited articles. They always feature well know personalities.
 
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There was no “due diligence“ if there had been then he would have seen that these scams have been around for a long time. They have been the subject of news report, current affairs programme.
It is simply another case of a fool trying to get rich quickly.
 
Everytime I see this ad I write SCAM in comments along with many others. It's been on the news that it's a scam. Using AI they can't make the lips move with the right sounds. Dead giveaway. No sympathy for stupidity and not researching these trading scams befor giving their money away.
 
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‘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."

I honestly believe people must have their heads in the sand. It has been all over the news and online that these are scams where they use high profile people to flog their investments.
 
Everytime I see this ad I write SCAM in comments along with many others. It's been on the news that it's a scam. Using AI they can't make the lips move with the right sounds. Dead giveaway. No sympathy for stupidity and not researching these trading scams befor giving their money away.
Everybody can be wise after the event.
 
I have never seen these types of adverts on Facebook. When I go to the news page on my computer appears to be run by MSN there are many of these types of scams. Anyone following these is stupid as we have all heard about these scams so many times. People cannot blame the person who is depicted as promoting the supposedly money making offer and who in their right mind would invest via this type of link. CRAZY
 
There's a good chance, the Scammer 'Piece of Garbage' can be traced through the Name account number, time & date, bank name or other Institution, and amount of time/s money is deposited.
 
Sadly I got scammed via FB on a cryptocurrency platform. I lost $1200, it has left me feeling very embarrassed. This was last year and even last week I had two calls from UK which I didn’t bother answering, also calls from mainly NSWs numbers of these people contacting me. They did say there was some mixup and they were not able to figure out the accounts to refund and I would get $30,000! An online chat with a UK govt agency said if I accepted that money it would be money laundering! I have reported to Scamwatch, and ACCC. Interestingly before I realise it to be a scam, they wanted me to download a crypto wallet, Coinbase, trying to put a small amount in it, my bank blocked me. But no blocking to the site where I put my money into. Also prior to that trying to sell on Marketplace I got scammed with the now known oh I put too much money into you account can you refund it. Via PayID, never used it before and well even though a very small amount I will never use again.
 
A good few years ago now, a person, male, phoned me to tell me that my computer was responsible for infecting a couple of sites that I frequently had dealings with, they needed to fix my computer they said, told me some numbers to key in and tell them the number that I saw…..I did, and then was fascinated to see my computer being manipulated remotely……….i know, I know, believe me I know 🙆‍♀️…..fortunately my wonderful son came to visit because my dog had been put to sleep and he was concerned for me…..he arrived seconds after I gave access to my computer to a stranger, he was horrified at what I’d done and immediately pulled out the plugs and very seriously told me it was a scam……the scammer had been in the process of stealing all my stuff but thankfully didn’t get any important information, he did steal some precious photos amongst other things………Anyway, since then I am ultra cautious about everything that comes to me via mobile, email, and never ever click on a prompt or answer my phone to a number I don’t recognise…..if need be I check with a verified number, but it’s rare………I’d rather plead ignorance these days. It’s right that a fool and his money are often parted, but I think you have to be caught sometimes to realise it.
 
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Sadly I got scammed via FB on a cryptocurrency platform. I lost $1200, it has left me feeling very embarrassed. This was last year and even last week I had two calls from UK which I didn’t bother answering, also calls from mainly NSWs numbers of these people contacting me. They did say there was some mixup and they were not able to figure out the accounts to refund and I would get $30,000! An online chat with a UK govt agency said if I accepted that money it would be money laundering! I have reported to Scamwatch, and ACCC. Interestingly before I realise it to be a scam, they wanted me to download a crypto wallet, Coinbase, trying to put a small amount in it, my bank blocked me. But no blocking to the site where I put my money into. Also prior to that trying to sell on Marketplace I got scammed with the now known oh I put too much money into you account can you refund it. Via PayID, never used it before and well even though a very small amount I will never use again.
You entered into conversation and arrangements for Crypto currency on Facebook??
There in lies the problem, you should be embarrassed.
From what you have explained you are the main reason these scams continue.
So many warnings on a daily basis but people keep falling for them.
The only way to trade safely on Market place is to accept cash only, FULL STOP.
 
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