Social media scam victim on a mission for a nationwide call to action against fraud syndicates
- Replies 24
In the digital age, the convenience of online connectivity comes with a dark side—the ever-present threat of cyber scams.
For many Australians, particularly those in their golden years, the risk of falling prey to sophisticated fraud syndicates is a harsh reality.
Deb, a 63-year-old Australian who learned this the hard way after losing her superannuation and savings to scammers who advertised on Facebook is now on a mission to prevent others from suffering the same fate.
Deb's ordeal began with an enticing ad featuring Australian celebrities and public figures endorsing an investment opportunity.
It was a ruse that led her into a devastating cycle of deceit and manipulation, ultimately costing her over $100,000.
The ads that once lured her now fuel her determination to fight back.
Now, she spends her days warning others by commenting on each ad she encounters, hoping to save them from the clutches of these cybercriminals.
‘A few weeks ago, when I went onto Facebook, there was just one [ad] after the other,’ Deb recounted.
‘I was furious.’
‘And that's what made me start thinking about how can I let everybody know,’ she continued.
Each day, Deb goes online and meticulously leaves comments under every advertisement she encounters, cautioning others with each post she makes.
She's eager to capture people's notice before their clicking, as what ensues is a complex network of scammer strategies that left her feeling ‘brainwashed’.
‘If I can stop anybody from losing everything—and more—I will,’ she declared.
Shortly after signing up with an online trading platform supported by a counterfeit video featuring Gina Rinehart on A Current Affair, Deb received a message from a man who identified himself as Daniel.
For the subsequent four months, Deb maintained regular communication with Daniel, whom she believed to be her designated investment broker, as she pursued funds according to his instructions.
‘It's just tragic and amazing how they can wrap you around their little finger, and you just totally get sucked up,’ she said.
‘I had one gentleman [victim] say he felt like he was hypnotised.’
According to ScamWatch, in 2023, investment scams defrauded Australians of nearly $300 million, with the majority originating from social media platforms.
As per IFW Global, a team of cybercrime investigators, Australia has emerged as a prime target for expansive networks of global syndicates that extensively employ social media to deceive victims.
Mark Solomons, the Chief Investigator at IFW Global, informed a federal parliamentary inquiry on cybercrime that Australia was one of the few countries on which these syndicates depended for expansion.
‘The syndicate masterminds know that the risk of detection, investigation, and prosecution by these countries is low and heavily outweighed by the potential rewards,’ he explained.
Authorities are cognisant of the ads, and just last month, the Australian Competition and Consumer Commission (ACCC) issued fresh public alerts.
The ACCC has initiated legal proceedings against Meta (the parent company of Facebook) regarding these scams, a case that is presently under consideration by the Federal Court.
Australia's wealthiest individual, Andrew Forrest, also pursued criminal charges against Meta for employing his image in the advertisements.
However, the Commonwealth Director of Public Prosecutions dropped the case last week in the WA District Court.
According to Mr Solomons’ submission, a European law enforcement agency identified over 30,000 Australian victims of a single Israeli fraud syndicate in 2023, with losses estimated in the hundreds of millions.
The initial investment registration fee of $US250 ($AU380) often ballooned into life-altering sums, with some victims losing their entire life savings amounting to millions as per IFW Global.
As Deb recounted, Daniel contacted her consistently, five days a week, at a fixed time each day.
According to IFW Global, the intricate and vast scam networks, worth billions of dollars, deploy call centers with numerous employees stationed in diverse global locations.
These networks reportedly maintain specialised teams operating on rotational shifts synchronised with the Australian time zone.
According to Deb, Daniel guided her on using a platform named Capital B and offered advice on investment trading strategies.
‘You do all the keystrokes and all the actions yourself,’ she narrated.
‘He just shows you and tells you how to do it.’
Initially, she withdrew some profits; however, when she upgraded to the $25,000 Silver Plan, that’s when ‘the scam really started’ according to her.
‘From the start of that $25,000 plan, it took me four months to lose $130,000,’ Deb continued.
Over time, the scammers constructed intricate storylines and induced panic to maintain Deb's engagement.
She was persuaded to distrust her banks and was convinced to channel investments into Olliv Bitcoin machines.
‘They make you worry about having your money in the banks,’ Deb said.
‘They really know the tactics to make you panic. And once you panic, you do what they tell you to do.’
According to the Australian Securities and Investment Commission (ASIC), the vast majority of investment scam operations it encounters originate from abroad.
These fraudsters deceive Australians into using cryptocurrencies such as Bitcoin because the chances of recovery are minimal.
Additionally, cryptocurrencies can be swiftly transferred overseas with limited oversight.
Following the initial weeks, Deb's requests to access her funds were consistently denied.
Instead, she was informed of substantial debts she purportedly owed.
At one point, Daniel asserted that she couldn't withdraw funds due to a decline in the value of her shares, and she needed to settle a $20,000 debt.
Subsequently, she was confronted with a $15,000 brokerage fee.
‘They give you a time limit of 24 hours,’ she added.
‘You panic... You think you can't touch your money until you pay.’
‘They drag it out of you bit by bit,’ Deb continued.
Capital B eventually forwarded Deb a closure agreement stipulating that she would receive all her funds by October 31.
‘I was sitting here happy as Larry thinking I would be getting $290,000,’ she recalled.
However, as the deadline neared, she was informed that her funds were inaccessible until she settled a blockchain fee of $30,000.
Deb pled help from Daniel saying ‘This will kill me.’
The only response she got was an emoji that ‘looks like it's saying prayers’.
‘And then he just faded away. That was about the last I heard from him,’ she lamented.
Deb reached out to her bank, ANZ, in an attempt to recover her funds and lodged a complaint with the ACCC regarding the incident.
Following an inquiry, ANZ communicated its inability to reimburse her; nevertheless, they transferred $2,000 as a ‘goodwill gesture’.
Recently, the ACCC corresponded with Deb, informing her of their collaboration with the Australian Federal Police (AFP) and suggesting she consider filing a police report.
Deb had previously lodged reports with the AFP, the Australian Cyber Securities Centre, and even the Action Fraud Police UK.
However, no Australian authorities have made contact to request a statement or additional information.
Mr Solomons criticised ASIC for what he perceived as insufficient action against international cybercrime, asserting that ASIC has ‘focused almost entirely on local offenders’.
In response, an ASIC spokesperson informed the ABC that the commission lacks authority in foreign jurisdictions, but collaborates with other agencies to aid investigations, regularly exchanging information with international regulators.
They emphasised ASIC's focus on scam detection and disruption, aiming to thwart scams at their source by removing harmful websites.
However, they acknowledged that halting the proliferation of investment scams needed ‘a whole-of-financial system response’, including digital platforms enhancing their efforts to detect and prevent scammers from exploiting their platforms.
Meta acknowledged that ‘scammers present many challenges’ and asserted it is collaborating across industries and governments to devise new strategies to combat them.
However, the government is proposing a series of modifications through a new mandatory code of practice for social media companies, aimed at enhancing their accountability.
Minister for Financial Services Stephen Jones stated in an interview last month that he aims to mandate social media platforms like Facebook, via the new code, to compensate individuals who suffer financial losses due to scams advertised on their platforms.
Deb expressed appreciation for the recent government statements, but was concerned that many more vulnerable individuals may fall victim to scams while authorities attempt to address the issue.
She noted that many of the victims she encountered were retirees and pensioners.
Deb intends to persist in raising awareness about the problem and encouraged other victims to speak out, unite for a class action, and ‘get angry’.
‘That's when we do our best this work,’ she urged.
‘I've got my fingers in everybody's pot, and I'm going to push as many buttons as I can.’
As reports continue to surface about Australians falling prey to fraudulent advertisements on social media platforms, it becomes increasingly evident that online scams are a pressing concern.
These scams not only exploit vulnerable individuals, but also underscore the need for greater accountability from social media companies.
In light of these developments, a veteran TV presenter shed light on how these platforms are enabling scammers, highlighting the urgency for action to protect users.
His insights provided valuable perspective on the intersection of social media and fraudulent activities, urging for proactive measures to address this growing problem.
Do you know anyone who has fallen for these types of scams? What are your tips on how to avoid them? Share your stories and suggestions in the comments below.
For many Australians, particularly those in their golden years, the risk of falling prey to sophisticated fraud syndicates is a harsh reality.
Deb, a 63-year-old Australian who learned this the hard way after losing her superannuation and savings to scammers who advertised on Facebook is now on a mission to prevent others from suffering the same fate.
Deb's ordeal began with an enticing ad featuring Australian celebrities and public figures endorsing an investment opportunity.
It was a ruse that led her into a devastating cycle of deceit and manipulation, ultimately costing her over $100,000.
The ads that once lured her now fuel her determination to fight back.
Now, she spends her days warning others by commenting on each ad she encounters, hoping to save them from the clutches of these cybercriminals.
A 63-year-old Australian is fighting to prevent people from falling for scams after losing over $100,000 in a social media fraud. Credits: Shutterstock
‘A few weeks ago, when I went onto Facebook, there was just one [ad] after the other,’ Deb recounted.
‘I was furious.’
‘And that's what made me start thinking about how can I let everybody know,’ she continued.
Each day, Deb goes online and meticulously leaves comments under every advertisement she encounters, cautioning others with each post she makes.
She's eager to capture people's notice before their clicking, as what ensues is a complex network of scammer strategies that left her feeling ‘brainwashed’.
‘If I can stop anybody from losing everything—and more—I will,’ she declared.
Shortly after signing up with an online trading platform supported by a counterfeit video featuring Gina Rinehart on A Current Affair, Deb received a message from a man who identified himself as Daniel.
For the subsequent four months, Deb maintained regular communication with Daniel, whom she believed to be her designated investment broker, as she pursued funds according to his instructions.
‘It's just tragic and amazing how they can wrap you around their little finger, and you just totally get sucked up,’ she said.
‘I had one gentleman [victim] say he felt like he was hypnotised.’
According to ScamWatch, in 2023, investment scams defrauded Australians of nearly $300 million, with the majority originating from social media platforms.
As per IFW Global, a team of cybercrime investigators, Australia has emerged as a prime target for expansive networks of global syndicates that extensively employ social media to deceive victims.
Mark Solomons, the Chief Investigator at IFW Global, informed a federal parliamentary inquiry on cybercrime that Australia was one of the few countries on which these syndicates depended for expansion.
‘The syndicate masterminds know that the risk of detection, investigation, and prosecution by these countries is low and heavily outweighed by the potential rewards,’ he explained.
Authorities are cognisant of the ads, and just last month, the Australian Competition and Consumer Commission (ACCC) issued fresh public alerts.
The ACCC has initiated legal proceedings against Meta (the parent company of Facebook) regarding these scams, a case that is presently under consideration by the Federal Court.
Australia's wealthiest individual, Andrew Forrest, also pursued criminal charges against Meta for employing his image in the advertisements.
However, the Commonwealth Director of Public Prosecutions dropped the case last week in the WA District Court.
According to Mr Solomons’ submission, a European law enforcement agency identified over 30,000 Australian victims of a single Israeli fraud syndicate in 2023, with losses estimated in the hundreds of millions.
The initial investment registration fee of $US250 ($AU380) often ballooned into life-altering sums, with some victims losing their entire life savings amounting to millions as per IFW Global.
As Deb recounted, Daniel contacted her consistently, five days a week, at a fixed time each day.
According to IFW Global, the intricate and vast scam networks, worth billions of dollars, deploy call centers with numerous employees stationed in diverse global locations.
These networks reportedly maintain specialised teams operating on rotational shifts synchronised with the Australian time zone.
According to Deb, Daniel guided her on using a platform named Capital B and offered advice on investment trading strategies.
‘You do all the keystrokes and all the actions yourself,’ she narrated.
‘He just shows you and tells you how to do it.’
Initially, she withdrew some profits; however, when she upgraded to the $25,000 Silver Plan, that’s when ‘the scam really started’ according to her.
‘From the start of that $25,000 plan, it took me four months to lose $130,000,’ Deb continued.
Over time, the scammers constructed intricate storylines and induced panic to maintain Deb's engagement.
She was persuaded to distrust her banks and was convinced to channel investments into Olliv Bitcoin machines.
‘They make you worry about having your money in the banks,’ Deb said.
‘They really know the tactics to make you panic. And once you panic, you do what they tell you to do.’
According to the Australian Securities and Investment Commission (ASIC), the vast majority of investment scam operations it encounters originate from abroad.
These fraudsters deceive Australians into using cryptocurrencies such as Bitcoin because the chances of recovery are minimal.
Additionally, cryptocurrencies can be swiftly transferred overseas with limited oversight.
Following the initial weeks, Deb's requests to access her funds were consistently denied.
Instead, she was informed of substantial debts she purportedly owed.
At one point, Daniel asserted that she couldn't withdraw funds due to a decline in the value of her shares, and she needed to settle a $20,000 debt.
Subsequently, she was confronted with a $15,000 brokerage fee.
‘They give you a time limit of 24 hours,’ she added.
‘You panic... You think you can't touch your money until you pay.’
‘They drag it out of you bit by bit,’ Deb continued.
Capital B eventually forwarded Deb a closure agreement stipulating that she would receive all her funds by October 31.
‘I was sitting here happy as Larry thinking I would be getting $290,000,’ she recalled.
However, as the deadline neared, she was informed that her funds were inaccessible until she settled a blockchain fee of $30,000.
Deb pled help from Daniel saying ‘This will kill me.’
The only response she got was an emoji that ‘looks like it's saying prayers’.
‘And then he just faded away. That was about the last I heard from him,’ she lamented.
Deb reached out to her bank, ANZ, in an attempt to recover her funds and lodged a complaint with the ACCC regarding the incident.
Following an inquiry, ANZ communicated its inability to reimburse her; nevertheless, they transferred $2,000 as a ‘goodwill gesture’.
Recently, the ACCC corresponded with Deb, informing her of their collaboration with the Australian Federal Police (AFP) and suggesting she consider filing a police report.
Deb had previously lodged reports with the AFP, the Australian Cyber Securities Centre, and even the Action Fraud Police UK.
However, no Australian authorities have made contact to request a statement or additional information.
Mr Solomons criticised ASIC for what he perceived as insufficient action against international cybercrime, asserting that ASIC has ‘focused almost entirely on local offenders’.
In response, an ASIC spokesperson informed the ABC that the commission lacks authority in foreign jurisdictions, but collaborates with other agencies to aid investigations, regularly exchanging information with international regulators.
They emphasised ASIC's focus on scam detection and disruption, aiming to thwart scams at their source by removing harmful websites.
However, they acknowledged that halting the proliferation of investment scams needed ‘a whole-of-financial system response’, including digital platforms enhancing their efforts to detect and prevent scammers from exploiting their platforms.
Meta acknowledged that ‘scammers present many challenges’ and asserted it is collaborating across industries and governments to devise new strategies to combat them.
However, the government is proposing a series of modifications through a new mandatory code of practice for social media companies, aimed at enhancing their accountability.
Minister for Financial Services Stephen Jones stated in an interview last month that he aims to mandate social media platforms like Facebook, via the new code, to compensate individuals who suffer financial losses due to scams advertised on their platforms.
Deb expressed appreciation for the recent government statements, but was concerned that many more vulnerable individuals may fall victim to scams while authorities attempt to address the issue.
She noted that many of the victims she encountered were retirees and pensioners.
Deb intends to persist in raising awareness about the problem and encouraged other victims to speak out, unite for a class action, and ‘get angry’.
‘That's when we do our best this work,’ she urged.
‘I've got my fingers in everybody's pot, and I'm going to push as many buttons as I can.’
As reports continue to surface about Australians falling prey to fraudulent advertisements on social media platforms, it becomes increasingly evident that online scams are a pressing concern.
These scams not only exploit vulnerable individuals, but also underscore the need for greater accountability from social media companies.
In light of these developments, a veteran TV presenter shed light on how these platforms are enabling scammers, highlighting the urgency for action to protect users.
His insights provided valuable perspective on the intersection of social media and fraudulent activities, urging for proactive measures to address this growing problem.
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