Scams aimed at businesses

Here are details of some of the scams reported to us by Kent businesses. Look out for these and similar schemes aimed at parting you from your money. If you have been the victim of any of these, or similar scams, please report it to the Consumer Direct Team on 08454 040506. They will also be able to give you advice if you need it.

 

Advertising scams

'Rogue publishers' can make huge sums of money by inducing large numbers of victims to pay for adverts in publications that do not exist, or are not what people are led to believe.

A typical rogue publisher will consist of little more than a telesales team armed with a stack of telephone directories and other publications containing advertisements. Smaller businesses are usually targeted and operatives use deliberately misleading patter that is often carefully scripted to sell advertising space in various types of publications such as wall planners, diaries, yearbooks, crime prevention or drugs awareness booklets. Costs usually range from about £100 to £1,000, depending upon the size of advert.

Sometimes it is claimed the publication is being produced on behalf of some reputable or worthy sounding cause, or that proceeds will go to charity. On other occasions you may be told that the publication will be targeted towards a specific sector e.g. emergency services, armed forces, councils etc.

In reality, some produce nothing at all and, although some may produce a few token copies of the supposed publication, these are not circulated in sufficient numbers, or in the right areas, to be of any practical benefit to the advertisers.

Rogue publishers have refined the art of operating in grey areas of the law that lie between sharp (but not illegal) business practice and outright criminality. As one outfit gets closed down, several others may spring up as the members move on to set up similar operations of their own.

The advice is to:

DO NOT agree to place an advert over the telephone unless you are absolutely happy with the publisher with whom you are dealing and what you are being offered.

DO NOT give out any financial information over the phone. Insist on seeing written details and a copy of the publisher's full terms and conditions before placing an order.

Some victims have received a string of calls that have become increasingly threatening and abusive. Try to keep a record of such calls including the time, date, name of caller and a note of what was said. By law, any callers should identify themselves and the company from which they are calling.

Be particularly wary if the initial caller transfers you to someone else during the call and always ask the next person you speak to for their name, the name of the company, which department they work in and their contact number. If the person you are speaking to cannot or will not provide these details, or if they become abusive, end the call straight away.

In relation to the recording of telephone calls, you may be able to request a copy of the recording if it is claimed one of your employees placed a definite order during a phone call. Consider signing up for the Corporate Telephone Preference Service (TPS) to cut down the amount of unsolicited marketing calls your company receives. 

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Cold calling scams

 

Bogus officials

Reports have been received of a caller claiming to be from the "spirit audit team" attempting to carry out an audit at a business selling spirits. He had no identification or any supporting paperwork. Always ask for identification from anyone claiming to be on official business and report such approaches to us via Consumer Direct on 0845 040506.

 

White line painting

Businesses, sports clubs and schools are being targeted by traders touting for work painting white lines for outdoor sports courts and parking bays. The scammers normally approach the caretaker or cleaners and persuade them to have the work carried out. One particular trader was reported to be charging £2 per linear foot, but only agrees the price after the work has been carried out. Demands for thousands of pounds are then made, with the trader becoming intimindating if payment isn't made.  Based on this rate of £2, a standard netball court could cost up to £1,000 compared to the going rate of around £200 through approved contractors recommended by a Local Authority. 

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Email scams

 

Bogus bookings

A Kent trader who runs a wedding venue reported he had received an email from an alleged customer in USA who wanted to make a booking. They said they would send funds and asked that the balance be sent on to a third party.  The trader was suspicious and did not take the booking.  Any email that requires you to return money or to send it on to a third party is likely to be a phishing exercise. if you send money in response to such requests you are unlikely to see it again.  Ring Consumer Direct for advice on 08454 04 05 06.

 

Purchasing overpayment scam

A Kent business reported an email approach from a person claiming to be an agent for a client looking to purchase some expensive catering equipment. The agent asked for a quote for some specific items and agreeing to purchase asked for details of a bank account to receive the money.  The agent subsequently contacted the Kent company asking for an "overpayment of £90,000 made in error" to be refunded. Checks by the company revealed this appears to be a scam to obtain money by deception as no money had been received from the client.  The incident was reported to the police.

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Mail scams

 

Anti money laundering

This scam involves a letter telling businesses that they should train their staff in new anti money-laundering regulations and that employees must pay £75 to register on a training course. This scam relies on the fact that law-abiding businesses will be inclined to send money in order to comply with what they are told is the law. Talk to a solicitor about your legal obligations, and report suspicious correspondence to Trading Standards.

Business Directories

These are another variation of the publishing scam. Many businesses receive official looking 'invoices' for entries from trade directory and database companies despite there being no contact with the company, and the scam relies on businesses not noticing that they do not have to pay the invoice. If you do not have a verbal or written contract with the company, do not be intimidated into paying the invoice by letters threatening court action and warn your staff about this type of scam.

 

Data Protection Agencies Scam

Businesses are being targeted by fake data protection 'agencies' posing as official government bodies. Letters are sent requesting sums of up to £135 to notify under the Data Protection Act, often using threatening language and on official-looking headed notepaper.

The statutory fee for notification is just £35 a year. Organisations and businesses that need to notify should go directly to the ICO.

It is a legal requirement that every organisation processing personal information must notify the information Commissioner's Office (ICO), unless they are exempt. Failure to notify is a criminal offence.

To check if you need to register please check the ICO website
or telephone 08456 30 60 60.

If you need advice please call Consumer Direct on 08454 04 05 06.

 

Health & Safety

Businesses have been receiving letters headed "final notice" stating they must purchase a health and safety law poster and accident book immediately or face prosecution. While businesses do have to display a poster and keep an accident book they can purchase these direct from the Health and Safety Executive for around £15 not the greatly inflalted prices demanded in the letter.