On the eve of the Melbourne Cup, gamblers have been warned by Scamwatch that “confidence tricksters” are on the hunt for more victims. The warning comes in a year when Australians have already lost more than one million dollars to “con artists” pushing sports investment.
Scamwatch, the scam alert service run by the Australian Competition and Consumer Commisssion (ACCC), says betting and sports investment scams convince victims to invest in ‘foolproof’ systems or software that can “guarantee” a profit on sporting events.
“These scams are often promoted as a legitimate investment,” ACCC deputy chair Delia Rickard says, noting that Scamwatch reports that people who “invest” in these schemes report an average loss of $10,000.
“Scammers offer software packages or syndicate betting with guaranteed returns when you follow their system for placing bets on horse races. Scammers are quick to capitalise on every opportunity and the Melbourne Cup is no exception.
{loadposition peter}“The scams are often promoted as legitimate investments but these schemes simply do not deliver. The odds are that you will never see your money again.”
And, beware the tactics of scammers looking to fleece you of your money, because Scamwatch says:
• Scammers will use high pressure sales tactics such as claiming that places are strictly limited or they may even claim their system is safe because it is backed by government regulations.
• Participation requires the payment of large upfront fees for software or access to so-called expert advice. Betting syndicates may also require the use of a sports betting account. These accounts may show winnings during the "trial period". However, this money cannot be accessed and will soon disappear along with the scammers.
So, with the Spring Carnival coming to a peak with the running of the Melbourne Cup tomorrow, here’s some advice from Scamwatch on how to protect yourself from scammers:
• If you receive a phone call, email or glossy brochure out of the blue about a sports investment opportunity, just hang up, delete the email and bin the brochure.
• Always get independent financial or legal advice if an offer involves significant money, time, or commitment.
To report scams to the ACCC via Scamwatch click here.