ASIC warn on cold calling scams

AAP,  7 March 2008

Victims of cold calling scams are very real, according to the Australian Securities and Investments Commission (ASIC), which says despite regular warnings, "far too many Australians are still falling for the lure of these scams".

One such man is Malcolm, who lost $30,000 last year after he received a cold call from "Cambridge Capital Trading", a fake company.

The Sydney resident was called at home, "just out of the blue", with a get-rich scheme related to trading the Australian dollar against its US counterpart.

While surprised, the offer seemed legitimate - the caller had a British accent, the company was based in London and doing business in Dubai, both recognised financial hubs, and websites, billing addresses and contact details were readily provided.

"I was a bit dissatisfied with the returns I was getting for the money I had in the bank on term deposit."

So Malcolm twice deposited money into a Malaysian bank account and dreamed of the waiting profits as the Australian dollar climbed from 77 to 84 US cents in a matter of weeks.

But it was not to be.

"I should have woken up because he had a hotmail address and I had to send money through Western Union," Malcolm said.

"If Western Union is involved be very, very wary."

The scheme unravelled after it came under scrutiny from authorities in Dubai and the Malaysian account was frozen.

Malcolm wanted his experience - the stress of losing so much money saw him lose five kilograms "in a matter of days" - to serve as a warning about the dangers of cold calling fraudsters.

"It does have a profound effect on the people who do get stung - you become suicidal, you just don't know what to do," Malcolm said.

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