$70 Million Lost in Scams

From the ACC web site:

http://www.accc.gov.au/content/index.phtml/itemId/916279

"During 2009, losses reported to the Australian Competition and Consumer Commission through scams totalled almost $70 million, ACCC deputy chair Peter Kell said today when launching Targeting scams - Report of the ACCC on scam activity 2009.

"Scams continue to make up a large proportion of total complaints that the ACCC receives and more than 20,000 scam reports were made to the ACCC in 2009 - a 16 per cent increase compared with 2008," Mr Kell said.

"Realistically, this figure is likely to be the tip of the iceberg – given people can be embarrassed about reporting that they have fallen victim to scams and lost money in the process."

Online scams are the focus for the Australasian Consumer Fraud Taskforce's 2010 Fraud Week campaign. The campaign, Online Offensive—Fighting Fraud Online runs from 1-7 March.

...The report notes that the dominance of online scams. "Nearly 70 per cent of consumers that contacted the ACCC about scams during 2009 said they were contacted by scammers via the internet," Mr Kell said."

Q1. How serious is this in relation to other crimes such as burglary and robbery?

Q2. Go to the Scam Watch web site: www.scamwatch.gov.au and find out how:

Identity theft works

What are 'Chain letter' scams?

Viral Advertising

This method of advertising is a popular way for organisations to promote themselves, their products or services. This can range from consumer products (Guinness) to self-parodies and political promotions.

The comments for this post are examples of viral advertising from students in the Graduate Certificate of Marketing at Holmesglen.

All very interesting and great examples of viral advertising! And one from me:

http://www.youtube.com/watch?v=vr3x_RRJdd4&feature=PlayList&p=31A99892D5AF7ED9&playnext=1&playnext_from=PL&index=1

http://www.youtube.com/watch?v=9lp0IWv8QZY

http://www.youtube.com/watch?v=1k08yxu57NA&feature=related

Q1. - How many views for each?

Q2. What are some common features of successful viral advertisments?

Email Hoaxes, Scams, Spam and Chain Emails

The power and ease of using email can also be abused. Emails are used for un-ethical marketing purposes, promotion of illegal schemes and for spreading false rumours. Some examples:

1. Nigerian scam

2. Get rich quick scams - work from home - stock market tips

3. Health and weightloss scams

4. Pharmacy items

5. Politically or racially motivated hoaxes

6. Chain letters to help child cancer victim

Hoaxes can be recognised by a number of characteristics:

1. It appeals to a common fear (heart attack/cancer)

2. It presents an explanation that is simple, seems intuitive and easily understood (but wrong)

3. It looks and sounds scientific or authoritative, and may contain some 'facts'

4. It does not cite or refer to any authority or provide any links to other sources

5. It asks you for forward it on to all your friends etc.

6. All it does is increase your internet download, wastes your time and creates anxiety

7. Hoax chain emails are often associated with viruses and spammers collecting email addresses.

Basic rule is that most chain emails are hoaxes. Check the chain email with one of the hoax web sites and other authorities and do not pass it on!

Check these web sites:

www.sophos.com/security/hoaxes

www.snopes.com

www.truthorfiction.com

www.breakthechain.org

www.scambusters.org

http://www.hoax-slayer.com

www.scamwatch.gov.a

http://www.afp.gov.au/national/major_fraud/internet_scams

http://www.ahtcc.gov.au/tech_crimes_types/fraud.htm

http://www.acma.gov.au/WEB/STANDARD/pc=PC_310529

Q1. What is the impact on internet marketing of these email scams and hoaxes?

Q2. How can consumers be protected in these cases?

Q3. What can ethical internet marketers do?

IPad!

Apple has just announced the iPad. Apple has a reputation for innovation and superb marketing. Apple has had great success with the iPhone and the iPod. However Apple are usually not the first to launch a new product. MP3 players were around before the iPod and 'smart' phones were also available before the iPhone (e.g. Blackberry).

Apple's success is due to its ability to innovate with existing technology, extend it and market it effectively. A key factor in the success of the iPod has been the linkages with iTunes. Similarly, the iPhone linkage with Apple Web Apps (http://www.apple.com/iphone/apps-for-iphone/) has greatly increased the iPhone's attraction.

Q1. Who is the target market for the iPad?

Q2. What makes Apple marketing so effective?

Q3. How is the iPad differentiated from the iPhone, Kindle and netbooks?

Selling Knowledge on the Web

A new business has been launched that sells 8 minute audio recordings of information:

"iMinds offers 8-minute AudioBooks and eBook articles that deliver bursts of knowledge on an array of topics through iPods, eReaders and other technology. Offering a well-rounded subject overview of a general knowledge topic, iMinds is a great way to top up your knowledge in a way that suits your lifestyle and devices."

http://www.iminds.com/

http://www.theage.com.au/technology/technology-news/how-to-get-a-grip-on-almost-everything-20100206-njwc.html

Q1. What is the business model?

Q2. Who are they targeting?

Q3. What is the attraction of iMind compared to Wikipedia?

Hollywood Loses Copyright Case

In the Australian Federal Court, a ruling was passed that removed responsibility for controlling movie downloads (piracy) from ISPs. iiNET was the ISP in question and it had claimed that its subscribers could copy movies across the internet without the ISP being able to effectively control it.

From The Age
"iiNet is not responsible if an iiNet user uses that system to bring about copyright infringement ... the law recognises no positive obligation on any person to protect the copyright of another," Justice Cowdroy said.

Q1. What is the impact on the movie industry?

Q2. How can copyright be protected in these situations?

Q3. What is BitTorrent and how is it used?

Socialnomics

Social Networking is establishing itself as a significant economic activity. New communication and interactivity channels are opening up for marketing. The video below is an interesting development of the original 'Did You Know?' video


Th link to the source and additional info in Socialnomics - The Social Media Blog
http://socialnomics.net/2009/09/24/new-shift-happens-did-you-know-video-shows-the-shift-is-to-social-media/
Q1. How is consumer behaviour changing?
Q2. What are the implications for marketing?
Q3. Is this all just hype?