avago181
February 13th, 2006, 02:37 PM
http://www.oft.gov.uk/News/Press+releases/2006/24-06.htm
A scam for everyone
Do the OFT quiz and become a scambuster
24/06 8 February 2006
'There is a scam for everyone', no matter what type of person you are, warns the OFT today in its month-long scams awareness campaign (note 1).
An estimated five million people (note 2) lose money to low-cost mass-marketed scams in the UK every year, at a cost of up to £1 billion per year (note 3) to the victims. Lottery scams capitalise on the need for money, clairvoyant scams exploit people's fears, and others such as miracle health or beauty cures prey on anxieties about health or personal appearance.
The OFT online quiz highlights the approaches and techniques used by different scams, and provides tips on how to avoid falling victim to the scammers.
Once someone has sent off money or personal information showing that they are susceptible to a particular type of scam, they will usually be placed on a 'sucker list' by the scammers, and targeted repeatedly.
Top 12 scams to look out for:
Prize draw/sweepstake mailing scam - mailings or emails telling recipients that they have won a major prize in a competition such as cash, a car or a holiday and that they only need to send an administration or registration fee. The prize may never materialise or is of low value.
Foreign lottery scam - these mailings, emails or phone calls congratulate the recipient on a substantial win in a foreign lottery, but to claim it they must send money for administrative fees and taxes. The win may never materialise.
Premium rate telephone prize scam - these notify people by post, telephone or text message that they have won a major prize in a competition, but need to ring or text an expensive premium rate telephone number (090..) to claim the prize. There are high call charges and the prize may never materialise, is of very low value, or has many strings attached.
Miracle health and slimming cures - these promise 'cures' for a variety of ailments or easy weight loss in return for payment. The products often don't work.
Work at home and business opportunity scam - offers to earn large amounts from working at home (e.g. 'stuffing envelopes'), or investing in a business and requests for money up front for more information. The work involved or the nature of the business is often mis-described and people can end up investing their money and time, but earn little or nothing in return.
African advance fee frauds/foreign money making scams - letters, emails or faxes from a 'top official' and offer a share of a large sum of money in return for using the recipient's bank account to transfer money out of the country. They are asked to pay money or their bank account is emptied and they never hear anything further.
Clairvoyant/psychic mailings - letters from a clairvoyant promising good luck (e.g. winning lottery numbers) or predicting bad omens. The recipients are asked to send money for an 'intervention' from the psychic to prevent bad luck.
Pyramid selling and chain letter scams - these promise high earnings for recruiting new members. People pay to join but the claims of earnings are unrealistic. There are no real products or services involved and the schemes can eventually collapse as new recruits dry up.
Become a successful model/ author/ inventor - people are promised that they can become a successful author or model, or that their invention will be a huge success in return for paying a fee. The promises rarely materialise.
High risk investment scams - these are telephone calls or mailings offering the opportunity to invest in valuable shares, fine wines, art, or gem stones with a promise of very high returns. The risks are high and the returns minimal or non-existent.
Matrix Schemes - these websites offer top of the range gadgets as free gifts in return for people spending £20 on other inexpensive products and joining a waiting list. Only those at the top of the list ever receive a free gift.
Bogus Holiday Clubs - people are invited to a presentation and pressured into paying for promised cheap holiday and travel services. The club services are often mis-described and the promises rarely materialise.
John Fingleton, OFT Chief Executive, said:
'Don't think that you can't be taken in by a scam. We may believe we are too savvy or streetwise to fall for these cons, but they target different people in different ways to exploit our weaknesses and take our money. Talk to neighbours and friends, check out the company, don't give out personal financial information and never send money up-front.'
Protect yourself from scams:
call Consumer Direct on 08454 04 05 06 for advice if you are unsure whether an offer is genuine or not
talk to neighbours, friends and relatives and check out whether this 'special offer' has been sent to others
never give out personal financial information or be pressured into sending money - take your time to check out the company and consider the offer at length.
See scams section of our website.
NOTES
1. The OFT's scams awareness campaign was launched on 1 February and will run throughout the month (see press release 19/06). Scams awareness month is part of an international initiative organised by the International Consumer Protection Enforcement Network (ICPEN). ICPEN is a membership organisation comprising the trade practices enforcement authorities of more than 30 countries across all five continents. ICPEN facilitates multi-lateral cooperation between the relevant authorities on cross-border cases. It has been agreed that scams awareness month is to become an annual event - this is the second such campaign. Last year 17 ICPEN members took part. This year over 20 countries will run awareness campaigns. The OFT has enlisted the support of Trading Standards Departments across the country, as well as Consumer Direct, Which?, the Advertising Standards Authority, ICSTIS and other consumer and industry bodies to help promote the campaign.
2. Prevalence figure taken from Which? report Scams: don't get sucked in (January 2006). Early results from OFT research show 59 per cent of the population aged over 15 has been targeted by mass-marketed scams.
3. The estimate of the loss to UK consumers is based upon data from a variety of sources. These include PhoneBusters, the Canadian national call centre for reporting telephone scams; seizures from PO boxes by enforcement bodies; complaints to ICSTIS about unexpected premium-rate call charges; and statistics provided by the National Criminal Intelligence Service. Estimates are based on 2004-05 figures. The OFT has commissioned research to establish the prevalence of scams and the level of consumer detriment. Full results will be published in the spring.
4. Download How to recognise a scam leaflet (pdf 537 kb) or order by ringing 0800 389 3158.
5. Consumer Direct is a telephone and online consumer advice and information service. Consumers can contact the helpline on 08454 040506 for clear, practical advice, including guidance on suspected scams, and to report scams. The OFT and other enforcers will have access to the Consumer Direct database. The national roll-out of Consumer Direct will be complete by spring 2006.
A scam for everyone
Do the OFT quiz and become a scambuster
24/06 8 February 2006
'There is a scam for everyone', no matter what type of person you are, warns the OFT today in its month-long scams awareness campaign (note 1).
An estimated five million people (note 2) lose money to low-cost mass-marketed scams in the UK every year, at a cost of up to £1 billion per year (note 3) to the victims. Lottery scams capitalise on the need for money, clairvoyant scams exploit people's fears, and others such as miracle health or beauty cures prey on anxieties about health or personal appearance.
The OFT online quiz highlights the approaches and techniques used by different scams, and provides tips on how to avoid falling victim to the scammers.
Once someone has sent off money or personal information showing that they are susceptible to a particular type of scam, they will usually be placed on a 'sucker list' by the scammers, and targeted repeatedly.
Top 12 scams to look out for:
Prize draw/sweepstake mailing scam - mailings or emails telling recipients that they have won a major prize in a competition such as cash, a car or a holiday and that they only need to send an administration or registration fee. The prize may never materialise or is of low value.
Foreign lottery scam - these mailings, emails or phone calls congratulate the recipient on a substantial win in a foreign lottery, but to claim it they must send money for administrative fees and taxes. The win may never materialise.
Premium rate telephone prize scam - these notify people by post, telephone or text message that they have won a major prize in a competition, but need to ring or text an expensive premium rate telephone number (090..) to claim the prize. There are high call charges and the prize may never materialise, is of very low value, or has many strings attached.
Miracle health and slimming cures - these promise 'cures' for a variety of ailments or easy weight loss in return for payment. The products often don't work.
Work at home and business opportunity scam - offers to earn large amounts from working at home (e.g. 'stuffing envelopes'), or investing in a business and requests for money up front for more information. The work involved or the nature of the business is often mis-described and people can end up investing their money and time, but earn little or nothing in return.
African advance fee frauds/foreign money making scams - letters, emails or faxes from a 'top official' and offer a share of a large sum of money in return for using the recipient's bank account to transfer money out of the country. They are asked to pay money or their bank account is emptied and they never hear anything further.
Clairvoyant/psychic mailings - letters from a clairvoyant promising good luck (e.g. winning lottery numbers) or predicting bad omens. The recipients are asked to send money for an 'intervention' from the psychic to prevent bad luck.
Pyramid selling and chain letter scams - these promise high earnings for recruiting new members. People pay to join but the claims of earnings are unrealistic. There are no real products or services involved and the schemes can eventually collapse as new recruits dry up.
Become a successful model/ author/ inventor - people are promised that they can become a successful author or model, or that their invention will be a huge success in return for paying a fee. The promises rarely materialise.
High risk investment scams - these are telephone calls or mailings offering the opportunity to invest in valuable shares, fine wines, art, or gem stones with a promise of very high returns. The risks are high and the returns minimal or non-existent.
Matrix Schemes - these websites offer top of the range gadgets as free gifts in return for people spending £20 on other inexpensive products and joining a waiting list. Only those at the top of the list ever receive a free gift.
Bogus Holiday Clubs - people are invited to a presentation and pressured into paying for promised cheap holiday and travel services. The club services are often mis-described and the promises rarely materialise.
John Fingleton, OFT Chief Executive, said:
'Don't think that you can't be taken in by a scam. We may believe we are too savvy or streetwise to fall for these cons, but they target different people in different ways to exploit our weaknesses and take our money. Talk to neighbours and friends, check out the company, don't give out personal financial information and never send money up-front.'
Protect yourself from scams:
call Consumer Direct on 08454 04 05 06 for advice if you are unsure whether an offer is genuine or not
talk to neighbours, friends and relatives and check out whether this 'special offer' has been sent to others
never give out personal financial information or be pressured into sending money - take your time to check out the company and consider the offer at length.
See scams section of our website.
NOTES
1. The OFT's scams awareness campaign was launched on 1 February and will run throughout the month (see press release 19/06). Scams awareness month is part of an international initiative organised by the International Consumer Protection Enforcement Network (ICPEN). ICPEN is a membership organisation comprising the trade practices enforcement authorities of more than 30 countries across all five continents. ICPEN facilitates multi-lateral cooperation between the relevant authorities on cross-border cases. It has been agreed that scams awareness month is to become an annual event - this is the second such campaign. Last year 17 ICPEN members took part. This year over 20 countries will run awareness campaigns. The OFT has enlisted the support of Trading Standards Departments across the country, as well as Consumer Direct, Which?, the Advertising Standards Authority, ICSTIS and other consumer and industry bodies to help promote the campaign.
2. Prevalence figure taken from Which? report Scams: don't get sucked in (January 2006). Early results from OFT research show 59 per cent of the population aged over 15 has been targeted by mass-marketed scams.
3. The estimate of the loss to UK consumers is based upon data from a variety of sources. These include PhoneBusters, the Canadian national call centre for reporting telephone scams; seizures from PO boxes by enforcement bodies; complaints to ICSTIS about unexpected premium-rate call charges; and statistics provided by the National Criminal Intelligence Service. Estimates are based on 2004-05 figures. The OFT has commissioned research to establish the prevalence of scams and the level of consumer detriment. Full results will be published in the spring.
4. Download How to recognise a scam leaflet (pdf 537 kb) or order by ringing 0800 389 3158.
5. Consumer Direct is a telephone and online consumer advice and information service. Consumers can contact the helpline on 08454 040506 for clear, practical advice, including guidance on suspected scams, and to report scams. The OFT and other enforcers will have access to the Consumer Direct database. The national roll-out of Consumer Direct will be complete by spring 2006.