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The Top 10 Scams to look out for.
competitionscafe
Posts: 4,050 Forumite
Got this from the Money Observer e-update newsletter (not as good as Martin's newsletter, 
but has some useful content), including this :>
>
THE TOP TEN SCAMS TO LOOK OUT FOR
The Office of Fair Trading (OFT) has published a top ten list of scams
targeted at UK consumers in a bid to alert the public to the swindles
that may part them from their money. Not all the schemes are
immediately obvious as scams.
The OFT says UK consumers lose an estimated GBP1 billion per year to a
variety of these scams which exploit low-cost, mass-marketing
techniques to target recipients. Many of these scams originate from
overseas, making detection and prosecution more difficult.
Christine Wade, director of consumer regulation enforcement at the
OFT, says: 'Scammers are resourceful, enterprising, and manipulative.
By exploiting the same routes to market as legitimate business, they
damage not only individual consumers, but the interests of
fair-trading businesses as well.'
The OFT is doing its best to track down the fraudsters, but says that
because many of them operate from abroad, it has to work in
co-operation with various regulatory bodies in different regions,
which takes time.
The top ten scams in full are:
1) Telephone lottery scams - these include the Canadian lottery scam
and the El Gordo Spanish lottery scam, which deceptively uses the
name of a genuine lottery. People respond to an unsolicited mailing
or telephone call telling them they are being entered into a prize
draw. They then receive a telephone call congratulating them on
winning a big prize in a national lottery - but before they can claim
their winnings, they must send money to pay for taxes and processing
fees. The prize doesn't exist.
2) Prize draws, sweepstakes and foreign lottery mailings - many
typical scams take the form of prize draws, lotteries or government
payouts. Most appear to be notification of a prize in an overseas
draw or lottery in return for administration or registration fees.
3) Premium rate telephone number scams - notification by post of a win
in a sweepstake or a holiday offer includes instructions to ring a
premium rate 090 number to claim your prize.
4) Investment related scams - an unsolicited telephone call offering
the opportunity to invest in shares, fine wine, gemstones or other
soon-to-be rare commodities. These investments often carry very high
risk and may be worth a lot less than you pay. The shares are not
quoted on any stock exchange and you will not be able to sell them
easily afterwards. 'Solid' valuable investments, such as gem stones,
are often said to be stored in secretive Swiss bank vaults, so you
can never see your investment.
5) Nigerian advance fee frauds - an offer via letter, email or fax to
share a huge sum of money in return for using the recipient's bank
account to permit the transfer of the money out of the country. The
perpetrators will either use the information given to empty their
victim's bank account; or convince him or her that money is needed up
front for bribing officials.
6) Pyramid schemes - these offer a return on a financial investment
based upon the number of new recruits to the scheme. Investors are
misled about the likely returns as there are not enough people to
support the scheme indefinitely - only the people who set up the
scheme are able to make any money.
7) Matrix schemes - are promoted via websites offering expensive
hi-tech gadgets as free gifts in return for spending GBP20 or similar
on a low-value product such as a mobile telephone signal booster.
Consumers who buy the product join a waiting list to receive their
free gift. The person at the top of the list gets their free gift
only after a prescribed number - sometimes as high as 100 - of new
members join up. In reality, the majority of those on the list will
never receive the expensive item they expect.
8) Credit scams - another advance fee fraud, originating in Canada.
Advertisements have appeared in local newspapers offering fast loans
regardless of credit history. Consumers who respond are told their
loans have been agreed but before the money can be released they must
pay a fee to cover insurance. Once the advance fee is paid, the
consumer never hears from the company again and the loan never
appears.
9) Property investment schemes - would-be investors attend a free
presentation and are persuaded to hand over thousands of pounds to
sign up to a course promising to teach them how to make money dealing
in property. Schemes may involve the opportunity to buy properties
which have yet to be built at a discount. A variation is a buy-to-let
scheme where companies offer to source, renovate and manage
properties, claiming good returns from rental income. In practice,
the properties are near-derelict and the tenants non-existent.
10) Work-at-home and business opportunity scams - often work by
advertising paid work from home but which require money up-front to
pay for materials; or by requiring investment in a business with
little or no chance of success.
The February issue of the award-winning Money Observer magazine is now
available at all good newsagents. For subscription information, visit
https://www.moneyobserver.com.
>
but has some useful content), including this :>>
THE TOP TEN SCAMS TO LOOK OUT FOR
The Office of Fair Trading (OFT) has published a top ten list of scams
targeted at UK consumers in a bid to alert the public to the swindles
that may part them from their money. Not all the schemes are
immediately obvious as scams.
The OFT says UK consumers lose an estimated GBP1 billion per year to a
variety of these scams which exploit low-cost, mass-marketing
techniques to target recipients. Many of these scams originate from
overseas, making detection and prosecution more difficult.
Christine Wade, director of consumer regulation enforcement at the
OFT, says: 'Scammers are resourceful, enterprising, and manipulative.
By exploiting the same routes to market as legitimate business, they
damage not only individual consumers, but the interests of
fair-trading businesses as well.'
The OFT is doing its best to track down the fraudsters, but says that
because many of them operate from abroad, it has to work in
co-operation with various regulatory bodies in different regions,
which takes time.
The top ten scams in full are:
1) Telephone lottery scams - these include the Canadian lottery scam
and the El Gordo Spanish lottery scam, which deceptively uses the
name of a genuine lottery. People respond to an unsolicited mailing
or telephone call telling them they are being entered into a prize
draw. They then receive a telephone call congratulating them on
winning a big prize in a national lottery - but before they can claim
their winnings, they must send money to pay for taxes and processing
fees. The prize doesn't exist.
2) Prize draws, sweepstakes and foreign lottery mailings - many
typical scams take the form of prize draws, lotteries or government
payouts. Most appear to be notification of a prize in an overseas
draw or lottery in return for administration or registration fees.
3) Premium rate telephone number scams - notification by post of a win
in a sweepstake or a holiday offer includes instructions to ring a
premium rate 090 number to claim your prize.
4) Investment related scams - an unsolicited telephone call offering
the opportunity to invest in shares, fine wine, gemstones or other
soon-to-be rare commodities. These investments often carry very high
risk and may be worth a lot less than you pay. The shares are not
quoted on any stock exchange and you will not be able to sell them
easily afterwards. 'Solid' valuable investments, such as gem stones,
are often said to be stored in secretive Swiss bank vaults, so you
can never see your investment.
5) Nigerian advance fee frauds - an offer via letter, email or fax to
share a huge sum of money in return for using the recipient's bank
account to permit the transfer of the money out of the country. The
perpetrators will either use the information given to empty their
victim's bank account; or convince him or her that money is needed up
front for bribing officials.
6) Pyramid schemes - these offer a return on a financial investment
based upon the number of new recruits to the scheme. Investors are
misled about the likely returns as there are not enough people to
support the scheme indefinitely - only the people who set up the
scheme are able to make any money.
7) Matrix schemes - are promoted via websites offering expensive
hi-tech gadgets as free gifts in return for spending GBP20 or similar
on a low-value product such as a mobile telephone signal booster.
Consumers who buy the product join a waiting list to receive their
free gift. The person at the top of the list gets their free gift
only after a prescribed number - sometimes as high as 100 - of new
members join up. In reality, the majority of those on the list will
never receive the expensive item they expect.
8) Credit scams - another advance fee fraud, originating in Canada.
Advertisements have appeared in local newspapers offering fast loans
regardless of credit history. Consumers who respond are told their
loans have been agreed but before the money can be released they must
pay a fee to cover insurance. Once the advance fee is paid, the
consumer never hears from the company again and the loan never
appears.
9) Property investment schemes - would-be investors attend a free
presentation and are persuaded to hand over thousands of pounds to
sign up to a course promising to teach them how to make money dealing
in property. Schemes may involve the opportunity to buy properties
which have yet to be built at a discount. A variation is a buy-to-let
scheme where companies offer to source, renovate and manage
properties, claiming good returns from rental income. In practice,
the properties are near-derelict and the tenants non-existent.
10) Work-at-home and business opportunity scams - often work by
advertising paid work from home but which require money up-front to
pay for materials; or by requiring investment in a business with
little or no chance of success.
The February issue of the award-winning Money Observer magazine is now
available at all good newsagents. For subscription information, visit
https://www.moneyobserver.com.
>
"The happiest of people don't necessarily have the
best of everything; they just make the best
of everything that comes along their way."
-- Author Unknown --
best of everything; they just make the best
of everything that comes along their way."
-- Author Unknown --
0
Comments
-
IS THIS A SCAM?
Typed in Tesco on google search and found this on the list. Am in need of extra cash so clicked on it. As it was for tesco and i do most of my shopping there wanted to know more.
It takes you to a site that wants you to pay a small fee to register then you can start working from home. Anyone had any dealings with this company? Am I right to be causious or just seeing the worst in everyone? Am in need of work from home as have health problems that make working away from home difficult.
Susie0 -
Sorry forgot to add the advert. here it is
Tesco Shoppers Wanted
Get Paid Up To £40/Hr For Your
Opinion! We'll Show You How.
PaidSurveysOnline.com
***Note from Board Guide: Edited to remove clickable link in the interests of caution.***0 -
Susie wrote:Sorry forgot to add the advert. here it is
Tesco Shoppers Wanted
Get Paid Up To £40/Hr For Your
Opinion! We'll Show You How.
Hi Susie
I would be weary of anything that you have to pay for/towards set up etc. Most genuine market research companies pay you in some form or another not the other way around.
Maria:drool: :dance: Timberlake Hussy Clique Member No 3 :dance: :drool:0 -
£40 my a**e!
If you want to mystery shop for tesco, pm and i'll tell you who to contact for free!
To anyone thats thinking of paying for this type of info, it really isnt worth it! You can get the information all free yourself using the internet.0 -
Can I change the top 10 to top 11?
I posted a thread here on MSE, check it out:
http://forums.moneysavingexpert.com/showthread.html?t=393940
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