Six
big con tricks - just say no The
Guardian, Saturday April 5 2008 What's
the lure? Here's one we received this week, from "Loteria Nacional".
Look out for "El Gordo" and "Loteria Primativa" too. Dates
and names change, but they follow a similar format: "You were entered by
computer into the 'Spanish Nacional Lottery Program' and from a pool of €13.3m,
your ticket number, 5-51-070809-434, has approved you for a lump sum payout of
€785,510. Fax back the 'Release Order Form'. Non-compliance will result in
disqualification and the prize returned to the Ministerio De Economia." What's
the scam? The fax form, asking for bank details, should alert you to identity
theft. But that's not the core of this scam. Once the "transfer process"
begins, the victim is told of various delays involving transfer fees, taxes, anti-terror
fees, insurance fees, claims agent fees, and other "administrative"
costs which must be paid before the prize can officially be collected. The first
fee is typically around £300. But then the demands
keep coming, and in
one case last year a Durham pensioner paid out £9,500 to the conmen, even
taking out a bank loan to find the money. Are
they being pursued? In 2005, 310 people were arrested in Malaga in what was said
to be the biggest ever bust of a lottery scam gang. The arrests followed an investigation
by the FBI and Spanish police into a scam run by Nigerian gangs. The gang was
spending £4m a year on postage, paper and envelopes. It's thought around
40,000 people a year believed the letters, and that a quarter of them would have
sent money. New gangs keep appearing - in February there were 10 arrests of gang
members in Malaga and Heulva. Award
notifications Senders:
European Bureau of Prize Draw Registry, Premium Claims Association, National Awards
Commission, Global Escrow Services ... the list goes on and on. What's
the lure? A prize draw "certified" letter, giving "official notification"
that you are the "confirmed winner" of a "cash or award entitlement".
Promised sums are sometimes just a few hundred pounds, sometimes more in the lottery
league. Others promise items such as LCD TVs, shopping sprees and premium bonds.
Letters are always "time sensitive". What's
the scam? Look out for the "rush envelope" so the "winner"
can verify their name, address etc ... and include a cheque for £20 as a
"processing fee" to claim the prize. Anyone replying will be targeted
with ever more scam letters, each demanding another £20. Alternatively,
the letters ask the victim to ring a premium rate line at £1.50 a minute.
This aims to persuade them to part with up to £9 for a lengthy call, plus
£6.50 postage. Are
they being pursued? Phone regulator Icstis regularly fines and blocks the premium
rate operators. Actions against the £20 cheque merchants are less successful. Clothing
collection Senders:
Support and Help, Angel of Goodness, Island of Hope What's
the lure? Companies push leaflets through letter boxes asking for unwanted clothes,
shoes and bedding. The
leaflets are designed to tug at heartstrings - they'll often feature a starving
child, homeless mother or person with disabilities. Your unwanted goods, it is
suggested, will help alleviate poverty. One says, rather ungrammatically: "God
will reward for your good hearts." What's
the scam? The leaflets, and sometimes any plastic bag that comes with them, are
designed to look like they are from a legitimate charity so donors think they
are helping a good cause. Some
use their leaflets as a way of being on the streets just ahead of a real charity
collector. But
charity is the last thing on their mind. These
are limited companies which set out to make a profit by selling donations overseas
- the good clothes go to street markets while the rest are sold as rags. This
costs real charities up to £5m a year. Are
they being pursued? Some 100 people in this scam have been arrested but few have
been successfully prosecuted. The directors are usually eastern Europeans. The
companies are only used once by those behind the scam, who often live abroad.
The companies
fail to make returns and just disappear. But recent legal guidance has removed
some grey areas. The
police have grabbed container loads at ports to check contents for stolen goods. Dodgy
catalogues Senders:
Biotonic, Best Of, Star Shopping, Oliveal, Vitamail, TV Direct Distribution, Just
for You What's
the lure? Personalised letters tell the recipient they have won a "guaranteed
cheque". All you have to do to claim is buy an item from the accompanying,
cheaply printed, brochure, usually for a minimum price of £20. Generally,
you'll only receive the prize if you place an order within 10 days. The pre-printed
order form asks you to tick a box saying that you have placed an order worth at
least £20, and often includes a free gift, such as "slimming concentrate".
What's the scam?
Typically, the products are cures and pills which make extraordinary restorative
claims and whose true cost is likely to be a fraction of the price paid. Are
they being pursued? Biotonic, based in Lille, was banned from operating in France
in 2003. The
OFT obtained an injunction against its parent company in Brussels in 2005, although
mailshots continue to arrive. In
2006 the OFT launched a legal action against Best Of and Oliveal in the Netherlands,
claiming they were producing misleading advertising. The judge ruled against the
OFT, but it appealed. A final judgment is awaited. The
OFT says: "Be aware that you are only being notified of a prize competition
that has already been drawn. You are under no obligation to make a purchase from
any enclosed catalogue in order to participate in the prize draw or claim a prize.
There will always
be a free entry route that you can use to participate without placing an order." Phoney
astrologers Senders:
Angelique de Succes, Gabriel d'Angelo, Samantha, Maria de Fortune, and countless
others. What's
the lure? Clairvoyant or psychic scams are typically aimed at the elderly and
the lonely. "Samantha" (who operates from post boxes in both Austria
and the Netherlands) tells readers "the time for tears is over. An immense
ray of luck will soon dazzle your future". What's
the scam? You are asked to send £20 to £30 (often plus £3 to
£5 for "recommended express delivery") for a "magic object"
and predictions of lottery numbers. Many ask extra to get "guaranteed awards"
of up to £20,000. Most ask for phone numbers so they can hit victims with
further demands, often backed with "occult threats" of "future
evil" for those failing to respond. Are
they being pursued? Not really. Psychic scams are a grey area - many are just
about legal because they offer something such as cheap jewellery. Some believe
they can be stopped because they demand money with menaces but the main weapon
is education. Racing
tipsters Senders:
Winning Post Investments, Julian Barker, Howard Racing Consultants What's
the lure? With the Grand National this afternoon, it's odds-on there'll be a huge
upsurge in interest in backing horses. Most tipsters try their best to produce
winners. But scamsters "guarantee" winnings. Winning Post Investments,
for example, sent out letters "guaranteeing" £1,500 a month for
£1,000 upfront with the " Inglehurst staking plan" (which does
not exist). They
say they play on inside information from the stables plus "confidential systems"
which will beat the bookies. Many even claim that the others are dishonest, so
you can trust them! What's
the scam? They hope you will send anything from £100 as a one-off fee to
£1,000 a month by direct debit for some of the more sophisticated systems
where you are "guaranteed" a regular and increasing income. The fee
may lead to a special phone line or "secret" internet site. And once
you respond, you will be inundated with other "offers". Many offer money-back
deals if you are disappointed but don't bet on this. Are
they being pursued? The British Horseracing Authority alerts punters and tries
to ban phoney tipsters from courses. The Office of Fair Trading won a high court
injunction against Brighton-based tipster Wesley Beagley in January. He had taken
£175,000. And the OFT's tipster scams unit is at Fleetbank House, 2-6 Salisbury
Square, London EC4Y 8JX. But most scams are short-lived and the perpetrators move
on and change details.
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