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Information taken from the Office of Fair Trading’s publication/website

 

Scambuster: Your Guide to beating the Scammers

 

Letters predicting the future

This is one of the most common direct mail scams. Letters from so-called psychics or clairvoyants promise to make predictions that will change the course of your life forever - for a small fee. Sometimes these mailings are aggressive in tone, saying something bad will happen to you if you do not send them money. Although they are sent out in their millions, the mailings are personalised to make it look as if you have been specifically chosen.

 

If you send money you are likely to be bombarded with further scams, because your name will be added to a suckers list.

 

How to protect yourself:

•

Stop junk mail by registering with the Mailing Preference Service, so that you can spot scams more easily.

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Don't be intimidated into replying.

•

Ask for advice - call Consumer Direct on 08454 04 05 06.

 

Pyramid selling and free gift schemes

Pyramid schemes are illegal. They are ' money-making' clubs which promise, once you've paid a joining fee, that you can earn large amounts by recruiting new members. However, only those at the top make money and the schemes always collapse, leaving you out of pocket.

 

No new money is created in pyramid schemes. An endless supply of new members would be needed for everyone to receive the money on offer in a pyramid scheme. Since this is impossible, these schemes must eventually collapse and result in most members losing their money.

 

Matrix schemes offer a free hi-tech gift, like an MP3 player. First you have to buy something low-value like a mobile telephone signal booster. If you do, you join a waiting list. The person at the top gets their free gift only if a large number of new members’ signs up - sometimes as many as 100. In reality, most people never get the gift.

 

Top tips to remember:

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Avoid plans that offer commissions based solely on recruiting new members.

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Be cautious of claims that you'll make money through continued growth or commissions on sales by your recruited distributors, instead of sales you make yourself.

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Be wary of fake testimonials. Some promoters pay people to describe fictional success in earning money through the scheme. Ask for solid evidence rather than a glowing testimonial.

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Don't hand over any money or sign a contract to take part in any multi-level marketing plan until you've investigated it. Take independent professional advice

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Don't agree to anything, or sign anything at high-pressure meetings or seminars

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Stop, think and be sceptical. Are you being offered something for nothing? If so, why?

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Ask for advice - call Consumer Direct on 08454 04 05 06.

Lotteries, sweepstakes and competitions

Every day, people throughout the UK open their post, receive a telephone call, turn on their computers or switch on their mobile phones to find they have unexpectedly won an exciting prize in a prize draw, lottery, sweepstake or other form of promotion. While some of these approaches are legitimate, others are a dishonest attempt to trap you into parting with your money.

 

Scammers sometimes use 090 numbers to part you from your money. Scams include phony prize and holiday offers. They often begin when the scammer sends you a letter, text or telephone message claiming that you have won a major prize and asking you to ring a particular number.

 

You might be promised a large cash prize or luxury holiday, but you may end with just a cheap giveaway item worth less than the cost of the call or nothing at all, except a huge phone bill.

 

If you ring you might have to listen to a long recorded message. Remember, the longer you stay on the phone, the higher the charge for the call.

 

How to protect yourself

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Don’t dial a 090 number unless you are absolutely sure how much you will be charged and you are willing to pay for it.

•

Remember that if you win something you shouldn’t have to pay anything to receive your prize, not even the cost of a telephone call.

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Ask for advice - call Consumer Direct on 08454 04 05 06.

 

Foreign money offers and advance fee scams

In a letter or email you might be offered a huge sum of money in return for your help to get money out of a foreign country. The scammers use the information you give them to empty your bank account, or to convince you to send them money up front.

 

Ads offering you fast loans regardless of your credit history can be another type of advance fee fraud. If you reply, you may told your loan has been agreed, but before the money can be released you must pay a fee to cover insurance. Once you have paid, you may never hear from the company again.

 

How to protect yourself

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Stop, think and be sceptical. Why does somebody you don't know want you to send them money up front? Why should you trust them?

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Ask for advice. Get in touch with Consumer Direct on 08454 04 05 06.

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Never, ever, give your bank details to people you don't know.

 

Work from home scams

 

These are work opportunities advertised in local newspapers, magazines, and shop windows, on lamp posts or on the web. They advertise paid work from home, some making exaggerated claims about potential earnings. But the require money upfront to pay for materials or to reveal their secret. They take your money but some don’t pay you for any work you do.

 

If you do reply to an ad and you’re asked for money before you start work, it is likely to be a scam. Genuine employers will not ask for money in advance.

 

Scammers and fraudsters advertise for people to handle payments on their behalf for a percentage of the money – usually around 10 per cent. You are given a forged or stolen cheque to pay into your account. You are then asked to withdraw the cash to send it to the fraudster by money transfer less your 10 per cent. When the bank finds out the cheque is invalid, they debit your account leaving you out of pocket.

 

How to protect yourself:

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Don't pay any money up front - genuine employers will not ask you to pay money before you start working.

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Stop, think and be sceptical. Ask yourself these simple questions: does it sound too good to be true? Is there actually an offer of work or just an offer to tell you more about finding work? Does it claim to be a big money opportunity? Does the work sound too easy?

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Be wary of offers to buy back the goods you have made, as the conditions attached may be impossible to fulfil.

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Find out more about the company you want to work for - if it is legitimate it should be happy to provide you with information for free.

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If you are looking for work to do at home, think about approaching local companies.

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Ask for advice - call Consumer Direct on 08454 04 05 06

 

Online dating scams

You sign up to an online dating agency and meet someone who is also looking for love. You write to each other for a few months until the person, who happens to live overseas, decides that they want to come to the UK. But they need help with money for the flight. You pay up to help your new friend – but he or she disappears, along with your money.

 

What can I do to protect myself?

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Only use a reputable online dating or chat service and follow the basic safety tips for online dating.

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Be sceptical and ask yourself simple questions like, ' why am I the only person who can help them but I have just met them?'

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Test your date - ask them lots of questions, try to phone them or post them something or possibly suggest meeting them. If all attempts fail, you are probably dealing with a scammer.

 

Investment scams

Investment Scammers will offer you the opportunity to put money into things like shares, fine wine, gemstones, or other 'rare' high value items. The promise is that these will rocket in value.

 

But what they offer is often over-priced, very high risk and difficult to sell on.

 

Many scamsters of this type work from overseas. Those dealing with ‘investment’ may not be authorised by the UK’s Financial Services Authority. Therefore you may not get your money back if things go wrong.

 

How to protect yourself

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Stop, think and be sceptical - it is generally against the law in the UK to call people out of the blue to sell them shares

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Ask for advice - call the Financial Services Authority on 0845 606 1234 to check whether the company is authorised

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Get independent financial advice before making an investment

 

Miracle health cures

Mailings or emails from unscrupulous sellers of medical products often promise miracles'.

 

These pills, lotions, creams and other products will supposedly cure baldness, arthritis, rheumatism, heart disease, multiple sclerosis, Parkinson's disease, cancer, obesity, impotency and other ailments. But it is unlikely that they have been properly tested or proven medically effective. Some might even be dangerous for your health.

 

These medically ineffective or dangerous products are sold by professional fraudsters with no medical training. Sales gimmicks include fake testimonials from 'satisfied customers', emotional sales pitches and outright lies regarding product effectiveness.

 

How to protect yourself

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Stop, think and be sceptical - if something sounds too good to be true it probably is

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Consult your doctor or pharmacist before you buy any medicinal product by mail order or over the web

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Ask for advice - call Consumer Direct on 08454 04 05 06.

 

Phishing

 

Phishing is a scam where Internet fraudsters send spam or pop-up messages to lure personal and financial information from unsuspecting victims.

 

The emails or pop-ups claim to be from a business or organisation that you might actually deal with - for example, an Internet service provider, bank or online payment service. The message may ask you to update,' validate,' or confirm your account information.

 

Some Phishing emails threaten a dire consequence if you don't respond. The messages direct you to a website that looks just like a legitimate organisation's site - but it isn't. It's a bogus site whose sole purpose is to trick you into giving away your personal information so the operators can steal your identity and run up bills or commit crimes in your name.

Remember - genuine organisations will never send you emails asking you to update, confirm or validate personal details.

 

Tips to avoid getting hooked by a Phishing scam:

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Don’t reply to email or pop-up messages that ask for personal or financial information, and don't click on links in the message

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Don’t cut and paste a link from the message into your web browser - phishers can make links look like they go to one place, but they actually send you to a different site

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If you are concerned about your account, contact the organisation using a phone number you know to be genuine, or open a new internet browser window and type in the company’s correct web address yourself

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Use anti-virus software and a firewall, and keep them up to date

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Don’t email personal or financial information - email is not a secure way to send Information

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Review credit card and bank account statements as soon as you receive them to check for unauthorised charges

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Be cautious about opening any attachment or downloading any files from emails you receive, regardless of who sent them

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Ask for advice - call Consumer Direct on 08454 04 05 06.

 

What to do if are unsure about or don’t want:

 

A mailing

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Check if the mailing comes from a member of the Direct Marketing Association (DMA).

Go to www.dma.org.uk

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To reduce unwanted mail register, free, with the Mailing Preference Service

(go to www.mpsonline.org.uk or call 0845 703 4599). Registering will make it easier for you to spot a scam in your mail.

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If in doubt, bin the letter.

 

A telephone call

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Telephone Preference Service (TPS): to reduce unwanted sales calls register your telephone number, free with the TPS – go to www.tpsonline.org.uk or call 0845 070

0707.

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Number block service: many telephone companies offer this service. It blocks callers from the UK and Channel Islands who withhold their number.

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Call barring: you can bar all calls to premium rate services and/or international rate numbers. Some phone companies charge for this service.

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If in doubt, hang up.

 

A text message

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You cannot be charged for a received text unless you sign up to a service.

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If you are signed up to a text message service you don’t want, text the word STOP – and

the service has to end immediately.

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To reduce unwanted sales text messages register your details with TPS (see above).

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If in doubt, don’t reply.

 

An email

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Use anti-virus software and a firewall. Keep them up to date.

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Don’t email personal and financial information.

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Be cautious opening any attachments or downloading any files from emails you receive, regardless of sender. These files can contain viruses or other software that can weaken your computer’s security.

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If in doubt, don’t reply.

If you think you have been the victim of a scam, or you suspect a scam, call Consumer Direct for clear practical consumer advice.

On 08454 04 05 06, or www.consumerdirect.gov.uk

 

Further information and a copy of the publication are available from:

http://www.oft.gov.uk/oft_at_work/consumer_initiatives/scams

 

 

 

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