ASIC has issued a warning to consumers about scammers posing as registered Australian companies, including Internet sites offering discounted domestic flights.
The Australian Securities and Investments Commission (ASIC), says 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,” said ASIC’s Delia Rickard. “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.”
Ms Rickard said the New Flights Website has been shut down, but that people should be wary about copycat sites popping-up.