Among the rising popularity of e-learning, one provider has tried to scam newcomers to the technology by taking credit card payments but not providing services.
ABC Tutors claims to offer online tuition to school students across Australia, but owes thousands of dollars, according to the Australian Securities and Investment Commission (ASIC).
The regulator warned ABC Tutors was associated with a Queensland company Tutormaster. Both businesses have the same director and secretary, Salvador Paje.
In a statement, ASIC said it appeared Paje had fled to the Philippines.
The company had maintained a presence offline as well as online, according to Greg Tanzer, ASIC executive director of consumer protection.
"ABC Tutors targets university campuses and local newspapers with a view to engaging the services of students. However, students have contacted ASIC stating that they are rarely, if ever, paid for their labour.
"Parents and potential tutors should be wary about dealing with companies that trade exclusively online with little or no human contact," said Tanzer.
The company web site, www.abctutors.com.au, is no longer accessible.
ASIC said it would continue to conduct enquiries on ABC Tutors and Tutormaster.