Residents in Western Australia on the hunt for work have reportedly been conned by an elaborate employment scam and Ponzi scheme, so far claiming a total of $130,000 between 10 victims.
The jobseekers are lured into the online scam through employment advertisements, and one Northern Suburbs woman says it has cost her her entire life savings.
Struggling photographer Lynn Roberts had been searching for her golden ticket when she was tricked.
“We were having money struggles anyway and I thought this could be the answer to everything,” Ms Roberts said.
“It was all very elaborate, it felt real, although with the amounts of money involved, your head says ‘its gotta be a scam’.”
The 51-year-old mother lost $5000 on a website asking victims to pay between $300 to $8000 in cryptocurrency for a membership to work for the business.
They then complete daily tasks of making fake purchases and posting false online reviews on sites including Amazon and Kogan.
The victim achieves a higher status and is paid more once the particular jobs are complete.
If you refer people and pay more in membership fees, more money is promised, but it’s never delivered.
Consumer Protection executive director Tim Banfield warns people about getting caught up in elaborate but illegal schemes.
“Callous scammers target vulnerable people who are looking for work and attract them with promises of easy money for doing little work,” Mr Banfield said.
“After they are hooked, then comes the promise of greater returns once more membership fees are paid and a higher status is achieved.
“Some victims may receive returns early in the process in order to give them confidence to invest more of their money.
“Avoid getting involved in this devious combination of employment scam and Ponzi scheme, even if it is recommended by a family member or friend who may be innocent victims themselves.”
Some tips to combat this scam include:
- Be wary of schemes or products that claim a guaranteed income for very little work.
- Consider whether the rewards you have been promised are dependent on product sales. If so, are the products of real value, sold at a reasonable price and something that there is actually consumer demand for?