Monday 10 July 2006 LAWFUEL – Law News Network – Fake company inter…

Monday 10 July 2006 LAWFUEL – Law News Network – Fake company internet sites offering discounted domestic flights are the latest scams to hit Australian consumers, prompting the Australian Securities and Investments Commission (ASIC) to issue a warning about scammers posing as registered Australian companies. It recently came to ASIC’s attention that a company called ‘New Flights Limited’ was advertising discounted flights to consumers via its website, www.newflights.net. According to the website, New Flights Limited was allegedly trading from a Bondi address. The use of the term ‘Limited’ created the illusion that consumers were dealing with a company registered in Australia when, in fact, the perpetrators were based in America and were purchasing the tickets using stolen credit cards. ‘Travelers today are accustomed to cheap internet deals, frequent flyer schemes and budget airlines. However, in light of this, consumers need to be aware of fake companies advertising on the internet, which promise to save you hundreds on your flight but leave you stranded at the airport with nothing but a worthless ticket’, ASIC’s Deputy Executive Director of Consumer Protection, Ms Delia Rickard said. ‘One of the simplest ways to ensure you don’t get burned by a holiday scam is to check the provider of the discounted airfare is indeed a registered company. The terms ‘Limited’ or ‘Pty Ltd’ may have the effect of making you believe that the offer is genuine, but it could be a ploy to trick you into a scam.’ ‘This particular website has since been shut down but people should be wary about copycat sites popping-up’, Ms Rickard said. If you have any doubts about an offer or company, conduct a free search on the National Names Index on ASIC’s website at www.asic.gov.au or by calling 1300 300 630. You’ll be able to find out whether that ‘company’ really is a ‘company’. ‘A quick check may prevent you from falling into a trap and help you to take off sooner and enjoy your hard-earned holiday’, Ms Rickard added. For further information contact: Delia Rickard Deputy Executive Director, Consumer Protection Telephone: 02 6250 3801 Mobile: 0412 673 026 Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769 Page 1 of 1
Visit FIDO, ASIC’s website for consumers and investors for financial tips
and safety checks, www.fido.gov.au

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