ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Businessman David Koch Distressed After Woman Loses $250K in Investment Scam That Impersonated Him

Koch reiterated the importance of public awareness and caution in navigating online investment opportunities.
PUBLISHED MAY 7, 2024
Cover Image Source: Power President David Koch | Getty Images | Photo by Michael Willson
Cover Image Source: Power President David Koch | Getty Images | Photo by Michael Willson

In a heartbreaking turn of events, a woman has lost $250,000 to an online scam featuring the likeness of Australian businessman David Koch, per Yahoo!Finance. The victim, Alison Smyth fell prey to the fraudulent scheme after seeing an advertisement on social media that falsely suggested Koch was endorsing a Bitcoin investment opportunity. David Koch, renowned as the economic director of Compare the Market and chairman of the Port Adelaide AFL club, expressed deep distress upon learning of Smyth's substantial financial loss. Smyth, a dedicated supporter of the Port Adelaide Magpies, was deceived by the scam which misused Koch's image to gain credibility.

Getty Images | Photo by Michael Willson
David Koch | Getty Images | Photo by Michael Willson

This incident underscores a persistent issue where scammers exploit the reputation of well-known figures to deceive unsuspecting individuals. Smyth recounted her unfortunate experience on Channel 7's Spotlight program, revealing how swiftly she found herself out of pocket due to the deceitful advertisement. Koch, who has been a repeated target of such scams, reiterated the importance of public awareness and caution in navigating online investment opportunities. An Adelaide woman, contacted by a man named Ben with an English accent, was drawn into an investment scheme over several weeks. Entrusting her money to this unfamiliar individual in hopes of financial gain, she eventually realized, to her mortification, that she had fallen victim to a scam after all her funds were depleted.

David Koch expressed horror upon learning of Smyth's ordeal, emphasizing the distress of seeing individuals who trust his advice and reputation being exploited by overseas scammers. The economic director of Compare the Market and chairman of Port Adelaide AFL club described the situation as devastating, highlighting the impact on his credibility and expressing heartfelt dismay that a member of his club had been targeted.

Although unable to recover Smyth's lost $250,000, Koch announced his intention to grant her a lifetime membership to Port Adelaide, ensuring she would not face the burden of annual fees. This gesture aims to offer support to Smyth after the scam. Koch is urging social media giants like Meta to take decisive action against scammers who exploit his image to deceive people. This call for action comes following a legal showdown in March 2022 when the Australian Competition & Consumer Commission (ACCC) initiated Federal Court proceedings against Meta, Facebook's parent company. The ACCC alleged that Meta had allowed the dissemination of fraudulent advertisements featuring prominent Australian personalities, including businessman Dick Smith and former NSW premier Mike Baird.

Unsplash | Photo by Max Duzij
Identity theft scams on the rise (representative image) | Unsplash | Photo by Max Duzij

According to ACCC Chair Rod Sims, Meta was accused of engaging in "false, misleading or deceptive conduct" by permitting these scam ads to appear on its platform without adequate measures to address the issue. Sims emphasized that Meta should have taken more proactive steps to detect and remove misleading advertisements, thereby safeguarding consumers from falling prey to unscrupulous scammers. In response, the ACCC disclosed that the National Anti-Scam Centre was collaborating with digital platforms to develop more effective strategies for combating investment scams and enhancing consumer protection measures.

A new report from the Australian Anti Scam Centre reveals Aussies lost $2.7 billion to scams last year despite a slight decrease from the previous record of $3.1 billion. The reported scams rose by 18.5%, predominantly affecting individuals over 65 who incurred the highest losses. Investment scams topped the list, accounting for $1.3 billion in losses, followed by remote access scams ($256 million) and romance scams ($201.1 million). Scamwatch advises vigilance against enticing opportunities, unfamiliar requests for financial aid, messages with links or attachments, high-pressure tactics, unusual payment methods, or requests to create new accounts. Victims should immediately contact their bank to halt transactions and report the scam to Scamwatch and local authorities. Beware of follow-up scams promising restitution. Seek support from financial counselors, BeyondBlue (1300 22 4636), Lifeline (13 11 14), or IDCARE for identity-related assistance.

MORE ON MARKET REALIST
The celebration was justified as Joseph won a brand new car on his birthday.
5 hours ago
The player, Shaunica Amantine missed out on taking home over $82,000 over the seemingly tough puzzle
7 hours ago
After nearly losing a brand new car, Dylan got a second chance to take it home.
8 hours ago
The seller Robert, chose to keep to his one-of-a-kind Boba Fett prototype, expecting to get more.
1 day ago
The player, Cherie Noisette, missed on out taking home more than $61,000 in prizes.
1 day ago
The seller refused to accept a lowball bid for his signed, rookie Mickey Mantle card.
1 day ago
Harvey couldn't relate more with the contestant and demanded the response to be number 1.
1 day ago
The player also brought her husband along on the stage to support her.
2 days ago
The guest who had very little idea about the Sun Valley poster was beyond delighted.
2 days ago
The FSIS announced at least five people were injured from consumption of the affected products.
3 days ago
In the end, the guest was ready to fight her sister for an item worth thousands of dollars.
3 days ago
Fans were heartbroken to see the player, Ryan, walk away empty handed.
3 days ago
Harvey couldn't believe the hard researched facts about catfish on the show.
3 days ago
Carey demanded the Wikipedia page of "Stack the Deck" game to be updated after the win.
3 days ago
The player Titus Stevens missed out on taking home nearly $65,000 over an easy puzzle.
4 days ago
Harvey couldn't control himself after hearing some of the answers.
4 days ago
The thrift store find turned out to be quite profitable for the seller named Kimberly.
5 days ago
The creator showed proof that the store jacked up the price of an item by $3 during a sale.
6 days ago
The contestant, Linda Rivera failed to crack a seemingly easy phrase in the finale.
6 days ago