$4 Million pledged to fake website
Aka:
Location:
Vic Australia
An April Fools day joke set up by the Australian Securities and Investments Commission showed how easily people are conned into investing large sums of money in ventures they know very little about or before they do any investigation.
On April 1, 1999 ASIC set up a fake Internet investment site,
www.smbi.com.au. The site assured people would triple their money in 15 months if they invested in Millennium Bug Insurance (MBI). The site claimed MBI was offering blue chip companies insurance against losses from the Year 2000 Millennium Bug.
In just one month more than 10,000 people visited the fake site with more than two hundred of them committing themselves to $10,000 and $50,000 investment packages. A further 1212 people asked for more information about the investment. In total, the site persuaded 233 people to part with more than $4 million.
"This shows how willing people are to part with large sums money without finding out anything about the company they are giving their money to," says Alan Cameron, ASIC Chairman.
"We chose the Internet as this year`s April Fool`s Day investment scam because some people, who might normally question the validity of an investment offer, seem to think that offers on the Internet come with some authority.
"They don`t! Taking advice over the Internet is the same as taking advice from someone on a street corner. Handing over $50,000 on the Internet is the same as handing over $50,000 to someone on the street.
"The first and best protection against fraud remains people being sceptical about offers which look too good to be true. They usually are. ASIC is quite unapologetic about using these unusual means to highlight that simple truth."
Mr Cameron said there are precautions the 233 people could have taken before so readily handing out the money. A visit to the ASIC website (
www.asic.gov.au) would have revealed there was no company called MBI and no prospectus lodged for this investment scheme. They would have also found how to choose a financial adviser to help them decide if they should hand over money to MBI.
"While the Internet has been around for some time, regulators have moved up a gear to monitor the growing number of investment offers being made to the public," says Mr Cameron. "People who make offers which aren`t genuine, or which breach the Law, need to know they are not the only ones who have the technology - ASIC is watching them."
The people who offered their money for the scheme received an e-mail from ASIC telling them it was an April Fool`s Day joke and giving them advice on how to protect themselves.
This is another example of the old adage - If an offer seems too good to be true, the chances are it is!
If you have any information on this matter, please email us at
scams@crimenet.com.au.