PUNTERS are being warned to watch out for con artists ahead of tomorrow's Melbourne Cup.
The Australian Competition and Consumer Commission has issued an alert about betting and sports investment scams.
Scammers convince victims to invest in "foolproof" systems or software that can "guarantee" a profit on sporting events when their system for placing bets on horse races is followed.
"These scams are particularly effective over the spring carnival period as racing fever takes hold," the commission's deputy chair Delia Rickard said.
"Scammers are quick to capitalise on every opportunity and the Melbourne Cup is no exception.
"The scams are often promoted as legitimate investments but these schemes simply do not deliver. The odds are that you will never see your money again."
Participation in these "investment" schemes requires a large upfront payment for software or access to so-called expert advice.
Some syndicates may also require the use of a sports betting account, which may show winnings during a trial period, but this money cannot be accessed.
The commission reports that more than $1 million has been lost this year to date to these schemes. On average, victims lost $10,000.
To report a scam visit www.scamwatch.com.au
