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Home » ‘Large criminal network’ scams Australians with fake imported smartphones
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‘Large criminal network’ scams Australians with fake imported smartphones

adminBy adminOctober 10, 2024No Comments4 Mins Read
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Courtney Smith was excited to use her long-service leave benefits to buy a new cell phone last month.

The single mother went online and found what appeared to be an affordable used Samsung Galaxy for sale on Facebook Marketplace.

“The inside of the box was brand new and sealed. And the story goes. [the seller] “I bought it for my ex-girlfriend, but we broke up,” Smith said.

“It was all pretty believable. I’m usually pretty interested in this stuff.”

She said she spent $1,000 on what was supposed to be a top-of-the-line Samsung.

Smith only realized it was fake when he got home and took the phone out of the box.

The screen quality, operating system, and camera features all performed like a smartphone made over a decade ago.

“I was completely heartbroken,” she said.

“Unless you’re buying a $70 phone, you’re not going to find the technology and slowness that modern phones have.”

Courtney Smith looks down at her cell phone.

Smith was shocked to discover that his cell phone was fake. (ABC Goulburn Murray: Jason Casaras)

After being blocked online by the seller and speaking to other members of the community, Ms Smith realized she was the victim of a scam that had already affected nine other people in her hometown of Albury.

“It’s hard to trust people these days,” she says.

“Since then, I’ve had to pay an additional $700 to have my old phone repaired, so that’s essentially a loss of nearly $2,000 from just one bad experience.”

Against a white background, a hand holds a smartphone with thumb and forefinger, hanging from a high place.

Experts have warned that fake mobile phones may be visually indistinguishable from the real thing. (ABCRN)

national problem

Shanan Corney, a senior lecturer in cybersecurity at the University of Melbourne, said fake mobile phones were being sold across Australia.

Last December, Brisbane police noticed an increase in these scams and issued a message to Christmas shoppers to remain vigilant.

Shannen Corney in a suit smiles for the camera

Shannan Corney said the manufacture and sale of counterfeit phones often have ties to large organized crime groups. (ABC Goulburn Murray: Provided )

Dr Corney said scammers often take low-end Chinese-made Android phones and insert them into the bodies of more expensive models, creating cheap but impressive-looking imitations.

He said the Chinese government has taken steps to crack down on such scams, and elaborate criminal networks are selling the products.

“These are large-scale criminal organizations that typically manufacture these devices and sell them before they finally reach consumers,” Dr. Corney said.

“When you buy one of these, you’re unknowingly supporting that ecosystem.”

Dr Corney said many people were involved in “a whole underground economy”.

“One person would manufacture them, another would wholesale them, and eventually individual low-level criminals would become retailers, defrauding individuals of their hard-earned money.”

Dr. Corney also said other factors include the prevalence of online markets and the low manufacturing costs of such phones.

Facebook Marketplace was built on trust, but fraud is rampant

Exclusive data from NAB shows that customer reports of buy-sell fraud soared in the final quarter of 2023, with most occurring through online marketplaces and social media.

He said there are a number of things buyers should look out for online.

“If a profile looks fake, it probably is,” he said.

“We strongly encourage anyone purchasing electronic equipment to try it out before completing the transaction.

“In fact, I myself have been scammed in the same way… so once bitten, twice embarrassed.”

known scams

Kathy Sundstrom is the national outreach manager for cyber support service ID Care.

He said since May, the group has received an average of 18 calls a month from people reporting premium telemarketing scams.

Kathy Sandstrom face photo image

Kathy Sundstrom says most fraud cases involve a phone call. (Provided by: Kathy Sandstrom)

“Not everyone gets a dangerous call, and you might end up paying for nothing,” she says.

“But even more concerning is that many fake sellers collect driving licenses from their victims and recycle them to appear legitimate to future victims.

“You should never provide your driving license details when buying something on Facebook Marketplace or Gumtree. When your personal identity is compromised, it creates new pain.”

Australian consumer watchdog ACCC said consumer guarantees do not apply to private sales between individuals.

An ACCC spokesperson said: “Consumers should think carefully before purchasing from individuals on online marketplaces and check the seller’s reviews and profile length.”

“Most online marketplaces also have the ability for consumers to report sellers… [people] You can also contact your bank about the possibility of recovering your funds. ”

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