FSCL Ombudsman warns people may be more vulnerable to scams amid 'challenging job market'
A woman has lost $25,000 after falling victim to a job scam on LinkedIn, prompting a reminder from the Financial Services Complaints (FSCL) to remain vigilant when sharing personal and financial information online.
Rika, a New Zealand woman, was contacted by a man named John who claimed to own a US-based construction company, according to the FSCL.
John offered Rika a part-time role, promising future payments once he secured investors for a project in Tokyo.
Rika was persuaded to take out a $25,000 loan to support the company, with the assurance that he would cover the repayments.
She applied for four credit cards with a combined limit of $25,000 and provided her credit card details to John once the cards were activated.
The man, however, failed to repay the money and left Rika with overwhelming debt, according to the FSCL.
Rika was able to repay $18,500, but was unable to continue due to financial strain and lodged a fraud complaint with her lender, who rejected her claim on the basis that Rika had willingly shared her account details.
The woman then turned to the FSCL for help, which concluded that Rika had been scammed, as she had authorised the transactions.
However, the FSCL also raised concerns over the lender's decision to approve four credit cards for Rika, which it suggested could be a case of irresponsible lending under the Credit Contracts and Consumer Finance Act 2003.
As a result, the lender agreed to write off the remaining $6,500, providing Rika with some relief.
Rika's situation is an example of the cases handled by the FSCL where people have been scammed after being contacted about an online job.
"Given the challenging job market at present, people may be more vulnerable to this type of scam, particularly if they have recently suffered a job loss," Financial Ombudsman Susan Taylor said in a statement.
To prevent falling for similar situations, Taylor advised consumers to safeguard their personal and financial information.
"Scams can happen to anyone in sometimes the most unexpected ways, and the fraudsters can be very persuasive, often manipulating emotions to build a sense of trust," Taylor said.
