Recently the Office of Fair Trading launching
a new campaign to raise awareness of the ways in which
people are conned to try to stop this happening.
To coincide with the launch, OFT has identified the
top ten scams targeted at UK consumers.
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Q |
Work at Home
Scams |
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A |
Work-at-home and business opportunity
scams are often advertised as paid work from home.
On application, would-be workers are asked for
money up-front to pay for materials and, after
payment, hear nothing.
Alternatively, people are asked to invest in
a business with little chance of success.
Top
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Q |
Telephone Lottery Scams |
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A |
These include scams which go under the name of
genuine lotteries like the Canadian lottery and
the El Gordo Spanish lottery. Unsolicited
telephone calls tell people they are being entered
into a prize draw. Later, they receive a call
congratulating them on winning a substantial prize
in a national lottery. But before they can claim
their prize, they are told they must send money
to pay for administration fees and taxes.
The prize, of course, does not exist. Top
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Q |
Matrix Schemes |
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A |
These schemes are promoted through
websites offering top-of-the range electronic
gadgets as free gifts in return for spending about
£20 on an inexpensive product, such as a
mobile phone signal booster.
Consumers who buy the product then join a waiting
list to receive their free gift. The person at
the top of the list receives his/her gift only
after a prescribed number of new members join
up. The majority of those on the list will never
receive the item. Top
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Q |
Prize Draw Mailings |
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A |
Holiday prize draws, sweepstakes
and foreign lottery mailings form the basis of
many scams. The majority appear to be notification
of a prize in an overseas draw or lottery.
Prizes can apparently only be awarded in return
for administration or registration fees. Top
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Q |
Property Investment Schemes |
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A |
Investors attend a free presentation, which
aims to persuade them to hand over large amounts
of money to enrol on a course promising to make
them a successful property dealer.
Schemes can involve the offer of buying yet-to-be
built properties at a discount. Other variations
include a buy-to-let scheme where companies offer
to source, renovate and manage properties, claiming
good returns from rental income. The properties
are generally near-derelict and the tenants non-existent.
Top
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Q |
Premium Rate Telephone Number
Scams |
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A |
Postal notification of a win
in a sweepstake or a holiday offer in this scam
include instructions to ring a premium rate number.
This is generally an 090 number.
Calls to the number incur significant charges,
the recorded message is lengthy, and the prize
often does not exist. Top
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Q |
Investment Related Scams |
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A |
An unsolicited telephone call
offers the opportunity to invest in 'soon-to-be-rare
commodities such as shares, fine wines or gem
stones. These investments often carry high risk
and may be worth a lot less than you pay.
The shares are not quoted on any stock exchange
and could be difficult to sell afterwards while
gem stones are often said to be stored in secretive
Swiss bank vaults, so the investment can never
be seen. Top
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Q |
Nigerian Advance Fee Frauds |
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A |
These frauds take the form of
an offer, via letter, e-mail or fax, to share
a huge sum of money in return for using the recipient's
bank account to transfer of the money out of the
country.
The perpetrators will often then use the bank
account details to empty their victim's bank account.
Alternatively, they can convince the victim that
money is needed up front. They will often say
this money is necessary to bribe officials. Top
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Q |
Credit Scams |
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A |
This is another advance fee fraud, this time
usually originating in Canada. Adverts appear
in local newspapers offering quick loans regardless
of credit history.
Respondents are told their loans have been agreed
but they must pay a fee to cover insurance before
it is released. After that fee is paid, the consumer
never hears from the company again and the loan
never appears. Top
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Q |
Pyramid Schemes |
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A |
Pyramid schemes offer a return on a financial
investment based on the number of new recruits
to the scheme.
Investors are misled about the likely returns.
There are simply not enough people to support
the scheme indefinitely. Top
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