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Please always remember the old
saying;
"If it sounds to good to be
true, it probably is."
If you know of any scams contact
us and/or notify RipOff-TipOff.Net
(developed by Trading Standards and the DTI working together)
Download these leaflets from the Office of Fair Trading: How
to recognise a scam and Scambuster Note:
these are pdf files - if you require the Adobe Reader program please download it
from here - 
Learn
to Recognise Scams
- Scam artists are up to date and
well-organised. They use well-crafted and researched telephone
scripts and professional marketing materials and mailings to appear
legitimate. Remember ‘glossy’ brochures and a professional image
does not mean they are genuine.
- Scam artists are only after your
money. They will claim that in order to obtain a prize or lottery
win you have to pay an ‘administration’ or ‘processing’
fee’, buy a product or service or call a premium rate telephone
number before you can collect.
- Scam artists want to be your best
friend. On the phone or at the door they are friendly,
approachable and generous, taking an interest in you and your family.
They will be more excited than you about your ‘good luck’ and use
psychological tricks to part you from your money.
- Scam artists don’t know you and
they don’t want you to know who they are.
The approach letter or
telephone call will come out of the blue and often from overseas. You
will be asked to send money to a Post Office Box or by wire transfer.
Often they will ask you to keep your ‘win’ or the ‘deal’
secret.
- Scam artists have a believable
answer to every one of your questions. The scam artist is a
practiced con-man. He knows that most people are sceptical, but he
will have an answer to all of your objections. Take time to reflect on
what you have been told or read.
- Scam artists try to rush you into a
decision. They want you to make an immediate decision and not
think about whether the offer or win is genuine. Take your time, read
over any letter or circular, and don’t agree to anything over the
phone.
- Scam artists will steal your trust
as well as your money. They will pretend to be officials from the
government, the police, a bank or a genuine company so that you will
trust them.
- Scam artists will steal your
personal information. They will demand your bank or credit card
details or copies of your passport or identity documents. They say
they are needed so that they can pay you a prize, but in fact they
will use your details for fraud.
- Scam artists target everyone.
There is a scam for everyone. Don’t think you can not be conned as
well – no one is immune. Be sceptical about any ‘too good to be
true offer’.
Top
Ten Tips to Protect Yourself from Scams
- Are you the only one to receive this
letter, call or email? Check with someone you know and trust like a
friend, relative or neighbour – that personalised approach has
probably been sent to thousands.
- Check out the company. Ask for written
information or a number to call back. Check the internet or with local
Trading Standards Department if you’re not sure.
- Do not give out your personal bank
account or credit card details to someone you don’t know.
- Don’t be pressured into signing
anything or sending any money.
- If it’s a genuine offer they have
nothing to hide and it will be there tomorrow.
- Remember there is a scam for everyone.
No one is immune to tempting offers or the professional pitch.
- It’s not always easy to spot scams
as new ones are invented every day. If you suspect you have been a
target of a scam don’t be embarrassed – you’re not alone.
- If you have been taken in, don’t be
ashamed - you’ve done nothing wrong. It is professional and
manipulative conmen that have broken the law. Report it and help to
prevent anyone else from feeling the same.
- Look out for friends or relatives who
may have been targeted. Are they receiving dozens of prize draw
letters or telephone calls from overseas? Is their house full of cheap
unwanted trinkets, jewellery or medical devices? If so encourage them
to talk.
- Trust your instincts - if it sounds
too good to be true, it probably is.
It's impossible to list all the
different types of scam you might come across, but this page should give
you a rough guide of what to look out for.
Scams are becoming increasingly common on the internet.
Below are examples of scam e-mail's & letters received by the
public.
|
Company/Individual |
Origin |
Type |
| Goldnow-shop.com |
Belize |
Email Scam |
| |
UK |
Health & Safety Mailshot Scam |
| Canadian
Lottery Scam |
Canada |
telephone marketing
|
| Investment
Fraud |
|
telephone marketing
|
| Cathy
Mabi |
South Africa |
Email Scam |
| Smith
Lawrence - ABSA Bank in South Africa |
South Africa |
Email Scam |
| Teriba
Fumi |
Federal
Minisry |
Email Scam |
| African
Government Official |
West Africa |
Advanced Fee
Fraud |
| Director General / Diamond Company |
Sierra Leone |
Email Scam |
| Abba Abacha |
Nigeria |
Email Scam |
| International Federation |
London |
"Won money in draw" |
| International Award Exchange |
Vancouver,
Canada |
Prize draw scam letter |
| Colonel Monoh |
Congo |
Scam fax |
| International Prize Payment |
Vancouver,
Canada |
£1500
vouchers/competition |
| Continental Disbursement |
Netherlands |
Prize Draw |
| Dominion Entitlement |
Netherlands |
Won £3,000 claims. |
| International Distribution |
Amsterdam/Netherlands |
Won £5000.00
claim |
| National Audit Center |
Canada |
Competition/prizes |
| Allocation group |
Netherlands |
Prize draw BMW |
| Petroleum Trust Fund |
Nigeria |
Request to transfer funds |
| International Cash & Merchandise |
Vancouver,
Canada |
Competition/prizes |
| Metro International Ltd |
Netherlands |
Prize draw circular |
| International Monetary Funding |
Canada |
£2000 cash award
act 2000 lira. |
| International Lottery
Commission |
Spain |
Guaranteed
Lottery Prize |
| International Cash & Merchandise |
Budapest |
Share of £465,000 |
| International Claim Bureau |
Denmark |
Cash award won claim |
| International Claim Bureau |
Bundall, Australia |
Prize Draw |
| International Lottery Commission |
Ontario |
£500
scratchcard |
|
OFT warns
consumers about 'Canadian lottery' scam
Consumers have lost thousands of
pounds as they are targeted by a deceptive telephone marketing
scam hitting the UK. The OFT has launched a new campaign to
warn consumers about the dangers of the 'Canadian lottery' scam.
The OFT is urging people not to
respond to telephone calls asking them to send money to claim
'winnings' from the Canadian National Lottery or any other
overseas lottery programme.
Thousands of consumers have already
been affected by the scam with victims in the UK reportedly losing
around £3 million in the first six months of this year alone.
The scam starts when people respond
to mailings or telephone calls telling them they are being entered
in a national lottery or some other prize draw, often from Canada,
Australia or Spain. They then receive a phone call congratulating
them on winning the 'big prize'. However, before they can claim
the prize, victims are told they must send money to pay for taxes
and processing fees. Often these calls are repeated and
further sums are sent. Consumers have lost thousands of pounds
through such schemes. The prize doesn't exist, and they never
receive any winnings in return for their cash.
Anybody can receive an unsolicited
call but the elderly are particularly at risk, with over 80 per
cent of those affected aged more than 65 years. In many cases the
caller tries to befriend the victim showing an interest in their
family and friends; they may also pose as a government official,
customs officer or lawyer. Evidence shows that most victims do not
report the crime through embarrassment or fear that they may lose
control of their finances because of their age.
The OFT has seen a large increase
in the number of calls it receives about callers claiming to be
associated with a Canadian national lottery. There have been more
than 300 complaints since August. There are at least 15 call
centres in Canada solely targeting the UK. One centre is already
known to have defrauded UK consumers of around £450,000.
The OFT is working closely with the
Canadian authorities to take action against the fraudsters. The
Canadian authorities have already arrested over 50 people, closing
down call centres and intercepting maildrops.
The OFT has set-up a telephone
hotline to collect evidence which the Canadian authorities can use
to prosecute the fraudsters. Anybody who has received a phone call
and/or sent money to people claiming to be associated with the
Canadian national lottery can call the hotline to give their
evidence and help put a stop to the scam. The number is: 020
7211 8111.
Penny Boys, OFT Executive Director,
comments:
'This is a professionally organised
operation and the people involved are very persuasive. Our
campaign aims to alert consumers to the need for caution when
responding to unsolicited mailings and phone calls.'
The OFT advises consumers:
-
if you have doubts about a
caller – hang-up
-
never send any money in order to
receive a prize
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never give out private financial
information
-
Canada does not have a national
lottery
-
if it sounds too good to be
true, it probably is.
Case Studies
a. Mr J
received a phone call from a representative of the First National
British Holdings in Canada and was told he had won £225,000 on
the Canadian National Lottery. The caller told him that under
Canadian Law he was required to pay a tax of 1per cent of the
winnings, £2,250. Mr J then received a series of calls from
individuals who claimed to be Canadian and UK customs officials,
lawyers and file administrators. He sent six further
payments for customs fees, insurance levies, and legal release
fees due to the series of convincing calls which included claims
that First National British Holdings had gone into administration.
By the time Mr J received a call claiming to be from UK Customs,
asking for £2,000 he felt he couldn't afford to cut his losses
and sent the money.
Mr J lost £18,750
in total. He did not contact UK or Canadian authorities but was
tracked through material seized in an arrest in Toronto.
b. Ms T
received a call from a representative of Global Call Centre
stating that he knew a guaranteed way of winning the Canadian
Lottery. The caller said that all Ms T had to do was forward
a cheque for £49.00 to an address in Vancouver. Within a
month of this contact Ms T received a series of telephone calls
asking her to send money to pay for the tax on her winnings.
She sent a total of approximately £200 in tax payments but has
never received any form of prize.
c. Mr N
received a call from the 'Head of the Legal Department' and was
told he had won £250,000; he would just need to send a 1.5 per
cent tax of £3,750 to the Toronto Authorities. Within
a month he had received another call claiming the tax was also
payable to the Vancouver Authorities and he would need to send a
further £3,750. Mr N never saw his prize but he did receive
more calls from an individual claiming he had won £250,000; again
the release of this prize was subject to a £3,750 payment for
tax.
d. Mrs K
received a number of different phone calls claiming she had won
between £4,500 and £135,000. The callers claimed to be
from Canada and Australia and she sent a number of payments of
between £60 and £2,000 for taxes and release fees. She
never received any prize.
TOP |
Advance Fee
(419) Fraud
|
Overview
The perpetrators of Advance Fee Fraud,
known internationally as "419" fraud after the section of the
Nigerian penal code which addresses fraud schemes, are often very creative
and innovative.
Unfortunately, there is a perception that
no one is prone to enter into such an obviously suspicious relationship.
However, a large number of victims are enticed into believing they have been
singled out from the masses to share in multi-million dollar windfall
profits for doing absolutely nothing.
It is also a misconception that the
victim's bank account is requested so the culprit can plunder it -- this is
not the primary reason for the account request -- merely a signal they have
hooked another victim.
-
The confidential nature of the transaction
is emphasised
-
In almost every case there is a sense of
urgency
-
The victim is enticed to travel to Nigeria
or a border country
-
There are many forged official looking
documents
-
Most of the correspondence is handled by
fax or e- mail
-
Blank letterheads and invoices are
requested from the victim along with the banking particulars
-
Any number of Nigerian fees are requested
for processing the transaction with each fee purported to be the last
required
-
There are usually claims of strong ties to
Nigerian officials
-
A Nigerian residing in the U.S., London or
other foreign venue may claim to be a clearinghouse bank for the Central
Bank of Nigeria
-
Offices in legitimate government buildings
appear to have been used by impostors posing as the real occupants or
officials
However, the most prevalent and
successful cases of Advance Fee Fraud surround the fund transfer scam.
In this scheme, a company or individual
will typically receive an unsolicited letter by mail from a Nigerian
claiming to be a senior civil servant. More recently letters have been
sent from European destinations, but these are all variations of the same
theme.
In the letter, the author will inform
the recipient that he is seeking a reputable foreign company or individual
into whose account he can deposit funds ranging from $10-$60 million, that
the Nigerian government overpaid on some procurement contract. A variation
of this surrounds the author claiming to have Royal or ‘Influential
Title’ and due to receive an inheritance of some description.
The criminals obtain the names of
potential victims from a variety of sources including trade journals,
professional directories, newspapers, and commercial libraries.
They
do not target a single company, but rather send out mailings en masse.
The letters will refer to investigations
of previous contracts awarded by prior regimes alleging that many
contracts were over invoiced. Rather than return the money to the
government, they desire to transfer the money to a foreign account. The
recipient is usually offered a commission up to 30 percent for assisting
in the transfer.
Initially, the intended victim may be
instructed to provide Company Letterheads and pro forma invoicing that
will be used to show completion of the contract. One of the reasons is to
use the victim's letterhead to forge letters of recommendation to other
victim companies and to seek out a travel visa from an Embassy in Lagos.
The victim is told that the completed contracts will be submitted for
approval to the Central Bank of Nigeria. Upon approval, the funds will be
remitted to an account supplied by the intended victim.
The goal of the criminal is to delude
the target into thinking that he is being drawn into a very lucrative,
albeit questionable, arrangement.
The intended victim must be reassured
and confident of the potential success of the deal. He will become the
primary supporter of the scheme and willingly contribute a large amount of
money when the deal is threatened. The term "when" is used
because the con-within-the-con is the scheme will be threatened in order
to persuade the victim to provide a large sum of money to save the
venture.
The letter, while appearing transparent
and even ridiculous to most, unfortunately is growing in its
effectiveness. It sets the stage and is the opening round of a two-layered
scheme or scheme within a scheme. The fraudster will eventually reach
someone who, while sceptical, desperately wants the deal to be genuine.
Several reasons have been submitted why
Nigerian Advance Fee Fraud has undergone a dramatic increase in recent
years. The explanations are as diverse as the types of schemes. The
Nigerian Government blames the growing problem on mass unemployment,
extended family systems, a get rich quick syndrome, and, especially, the
greed of foreigners.
Indications are that Advance Fee Fraud
attracts vast amounts annually and losses are continuing to escalate. In
all likelihood, there are victims who do not report their losses to
authorities due to either fear or embarrassment.
In response to this growing epidemic,
many organisations have established operations designed to target Nigerian
Advance Fee Fraud on an international basis.
IF YOU RECEIVE a 419 letter
or e-mail
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DO NOT REPLY.
-
Fax the letter or forward the e-mail to
the Trading Standards Service.
-
E-mail address for 419 letters –
tradingstandards@aberdeencity.gov.uk
-
If you have already become embroiled in
this scam, contact your local Trading Standards Service IMMEDIATELY.
TOP
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Advertised opportunities to earn income by doing work at home are
often fraudulent and rarely result in substantial income. Usually the
advertisements promise a high-income position requiring little
experience and no investment, however, in most of these schemes you must
purchase something before you begin work.
The targets of these schemes are typically people who need extra
money, but who, for various reasons, are unable to work outside the
home, including the unemployed, handicapped persons, the elderly, and
low income earners.
Some home working schemes promote ideas for setting up home
businesses, such as selling speciality products for which little or no
market exists. You are not informed at the outset that you will be
required to sell these items yourself in order to start your own
business. Sometimes these schemes require you to produce the items
yourself with the promoter’s promise to buy back the items providing
the workmanship meets their ‘high standards.’ These promoters
invariably reject the finished products and return them to you to sell
on your own.
Our advice:
-
Be particularly wary of envelope stuffing schemes. Low-cost,
modern mailing technology has virtually eliminated the need for
workers to perform bulk envelope stuffing, addressing, and mailing
services from home.
TOP |
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Chain letters depend on duping recipients into giving money to
strangers in exchange for the promise of riches from other sources later
on.
You receive a letter or e-mail from a recruiter with a list of names
on it, including the recruiter's name at the bottom of the list. You are
asked to send money to the name at the top of the list, and to add your
name to the bottom. You are then asked to solicit more people to do the
same by sending them the letter with your name at the bottom.
Money is made solely by getting new recruits to join the chain. In
theory, each recruit’s name will be at the top of millions of lists
and receive millions of pounds, but in reality, most people will receive
nothing. The chain can be easily broken by anyone, thus depriving all
those on the list of any possible earnings.
Our advice:
TOP |
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Beware of notification received by telephone, through the post, or
via the Internet indicating that you have won a major cash prize. To
secure the release of the prize, you are required to pay an up-front fee
to the company. Sometimes the prizes include a series of lottery numbers
with a chance to win an expensive vehicle or holiday cruise. Typically,
people who send money for these prizes never receive them and, instead,
receive only various forms of entry confirmation issued by the con
artists.
TOP |
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Don't be taken in by internet sites which offer items not sold
through traditional suppliers and which they claim to be
"proven" to cure serious and even fatal health problems.
These claims for "miracle" products and treatments may
convince consumers that their health problems can be cured. But people
with serious illnesses who put their hopes in these offers might delay
getting the health care they need.
Our advice:
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Beware the unsolicited e-mail urging you to 'be your own boss and
earn big bucks'.
Taken in by promises about potential earnings, many consumers have
invested in a "biz op" that turned out to be a "biz
flop." There was no evidence to back up the earnings claims.
Our advice:
-
Talk to other people who started businesses through the same
company, get all the promises in writing, and study the proposed
contract carefully before signing. Get a solicitor or an accountant
to take a look at it, too.
TOP |
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Be wary of the following:
Big Promises
Claims such as "Make money in your spare time," "Earn
thousands per week!" or "guaranteed income" are almost
always sure signs of a scam. Excellent opportunities sell themselves,
they don't need to be sold to you through big time pressure and promises
of riches.
High Pressure Tactics
For example, "sign up now or the price will increase."
Again, a legitimate deal probably isn't going to move as fast as your
money. Don't let yourself be pressured, think things through.
Prizes
Promises of prizes and money almost always come with catches, or are
blatant lies. Watch in particular for "prizes" where you have
to pay something up front to claim it (that includes postage fees).
Requests for financial information
There are only a few real reasons anyone could need your credit card
number, the main one being that you are making an online purchase. If
so, ensure it is a reputable merchant and that the information is being
encrypted. Some sites claim to need credit card numbers as proof of age.
A credit card number is not proof of age, and credit card theft on the
internet using these tactics is skyrocketing. Do not give your number
out if you don't know exactly who you are giving it to and have a means
of recourse if something goes wrong. See the internet shopping tips for
more.
The word "FREE"
When you see the word 'free', you should expect a catch, if not
outright lying. Always view this word warily, especially when it shows
up in spam and on unreputable websites. Some sites will offer you access
to content for "free" if you provide a credit card number as
proof of age. As stated above, a credit card number is not proof of age
and what the number could be used for once you give it up is probably
NOT worth the risk.
Having to send money before receiving a product
This is particularly the case with online auctions. Take extreme
caution when participating in internet auctions, and be sure to use an
escrow service. Auctions comprise the most commonly reported method of
internet fraud.
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More tips can be found on the Office
of Fair Trading site and
on the Rip-Off
Tip-Off site.
If you are suspicious or require further information
contact Trading Standards on (01224) 523737.
- Aberdeen City Council, Trading
Standards Service,
- St. Nicholas House, Broad Street,
Aberdeen, AB10 1BX
- Telephone: (01224) 523737 Fax: (01224)
645786
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- Copyright © Aberdeen City Council Trading Standards Service 2004
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