Reports of celebrity endorsement scams have increased by 400 per cent in 2018 according to the Australian Competition & Consumer Commission (ACCC). 

Reports of losses have also increased by 3,800 per cent in 2018. This has totaled to more than $142,000. 

“The growth in these scams is very concerning, particularly as over half the reports we received included financial loss. Most people lost between $100 and $500 and in one case, a victim lost more than $50,000 through fake celebrity endorsement of an investment scheme,” ACCC Deputy Chair Delia Rickard said. 

Popular products that are often vulnerable to scams include skin care creams, weight loss pills, or investment schemes. 

They are usually advertised online and on social media and include fictitious quotes and images of celebrities, including popular figures such as Cate Blanchett, Delta Goodrem, Emma Thompson, Deborah Knight from Nine News Sydney, Lisa Wilkinson from Channel 10, Meghan Markle, Nicole Kidman, Oprah and more. 

In most cases, these scams work through providing a ‘free trial’ for a product as consumers sign up with their credit card details. However, the free trial is under strict terms and conditions, making it near impossible to cancel as it automatically renews its subscription. 

“The groups behind these celebrity endorsement scams are organised and sophisticated fraudsters who are often involved in other scams. It’s easy for them to create fake ads and websites to give credibility to their con, so people need to be very careful and skeptical about ads they read on social media and websites,” Ms Rickard said.