THINK TWICE BEFORE BETTING ON A SURE THING
A betting or sports investment scam is where a scammer will convince a victim to invest in a ‘failsafe’ betting system or software. A scammer will tell you that the system guarantees a profit on sporting events. Generally, victims lose substantial amounts of money of ten thousand dollars or more. These scams are presented as legitimate investments, sometimes with a fancy brochure or website. Scammers also like to capitalise on major sporting events such as the Melbourne Cup or Sporting grand finals.
Common types of Betting and Sports Investment scams include computer prediction software, betting syndicates and sports investments. Scammers promise their software will accurately predict results and will offer high returns. In many cases, they are using freely available information and the victim never realises a return, losing their money entirely. To become part of a betting syndicate there is a compulsory joining fee and requires the use of a sports betting account. The victim will also be asked to continue making account deposits. This is with the promise that they will share in the profits with the other syndicate members, which never happens.
With Sports Investments, a scammer may have sophisticated brochures and use terms such as 'sports trading' or 'wagering' to lure in victims. Once again, they will promise high returns with little effort.
Like with many scams, there is pressure to act now and to act quickly. Salespeople may even contact you frequently to ask you to invest or buy the product. These scams can be challenging to spot, however, there are warning signs to look out for. The major red flag in relation to scams is the promise of huge returns and risk-free profits. Anyone promising a 100% guarantee on returns, or certain pick guarantees, should be approached with caution. You should also be wary of someone or a group using the ‘limited spots’ line to pressure you to deposit your money quickly.
“If something seems too good to be true, then it probably is. Scammers prey on human vulnerability to hook unsuspecting individuals, so do your own independent research when it comes to any investment”.
- Do your homework. If you’re looking for a sports betting provider or website, look at the reviews and comments.
- Don’t take a chance on someone trying to sell you sports investment opportunities or prediction software, simply hang up.
- Avoid high-pressure sales tactics and slick sales tactics, such as graphs showing high returns and reports on past performance.
- Get independent legal or financial advice before making money or investment decisions.
- Verify the company’s postal address – often a company’s postal address is merely a car park and there is no real office.
- Keep an eye out for any ongoing costs associated with the scheme or system.
- If you sign up for a subscription service, make sure you know how to cancel it.
As with any scam, if you think you have provided your account details, passport, or other personal identification details to a scammer, contact your bank, financial institution, or other relevant agencies immediately.
You can also help others stay away from sports betting scams by reporting investment scam cases to ReportCyber. When reporting a scam, it is critical to provide as much information as possible including screenshots of emails and text messages.
