New scams

Trading Standards Rogue Trader scam

Some people who have already been targeted by rogue traders offering home repairs such as roofing work have been targeted a second time where the criminals claim to be Trading Standards Officers. They claim to have seized cash from the original crooks and can return lost money to the consumer or provide compensation. In different cases the consumer's bank details have been asked for or up-front payments by cheque or bank transfer have been asked for.

We believe it is the original criminals or their accomplices re-targeting victims. Genuine Trading Standards Officers will never ever ask for up-front payment before assisting a consumer in obtaining a refund. They will always carry photograph identification. If you are approached out of the blue by someone claiming to work for Trading Standards who asks you to part with money or provide your personal details, for any reason, please do not do so and report the matter to the National Consumer Helpline on 08454 040506. If you feel threatened call 999.

More information on fraud and scams can be found at the national fraud reporting website at www.actionfraud.police.uk.

Pensions Cold Calling Scam

We have received a number of complaints from consumers who have received telephone calls out of the blue in which they are told that their pensions have been underpaid and they are entitled to a cash windfall. None of the complainants have followed the instructions to select options on their telephone so we do not know how the scam would develop but it is fairly common for scammers to claim that up-front payments of some kind are needed to allow a refund or windfall payment to be processed. Alternatively, scammers may ask for personal identification and bank details which are then used to steal money or in identity theft.

Do not engage with any cold calls either by phone, letter, email or in person where you are told you are entitled to refunds or compensation as these are very likely to be scams. You can report such scams to the national fraud reporting centre at www.actionfraud.police.uk.

"Free" trials of slimming aids

Typically these supposedly "free" trials of slimming aids turn out to roll into on-going contracts which are made difficult, if not impossible to exit.

Whether these products are advertised on the internet, in flyers or in magazines the way they operate is very similar. Consumers are encouraged to place an order as a "free" trial with no further commitment. The offers will usually have one main feature in common - you will have to give you bank card details in advance even though the trial is "free". Often this is said to be for post and packaging.

If you check the small print you will nearly always find that, unless you take very specific steps to cancel, the trial will roll into an on-going contract and that the trader now  has access to your bank account. In some cases the trader only takes the amount of money which the small print allows it to but, in other cases, multiple payments have been taken in very short periods of time, whether or not any new product is actually delivered to the consumer.

Typically it is very difficult to cancel the access to your bank account. Many of the traders are actually based abroad, even if there is a UK address and correspondence cancelling the contract is often simply ignored. Banks have informed customers that it is very difficult to stop payment once the consumer has, by handing over their bank details, given permission for the money to be taken.

The best advice is not to fall into the trap of agreeing to these "free" trials in the first place. While consumers have the legal right to cancel any "distance" contract up to 7 working days after the goods are delivered (and many adverts trumpet even more generous cancellation periods), in practice, consumers report that cancellations are ignored. To add insult to injury, many of the products will make unregulated and unproved claims about their effectiveness and may be worthless.

If you know you have entered into one of these contracts in the past, think you have cancelled it and have not received any product since, it is still worth while checking your bank statement for unexplained deductions as they may come from one of these companies.

The position with cancelling payment authorisations to your bank has been clarified in the last few months. The type of permission you give to a trader when you hand over your bank card details is a "continuous payment authority". Banks have often told consumers that only the trader can cancel such an authorisation. It is now absolutely clear that the consumer can instruct their bank to stop such payments and does not have to prove a fraud to do so.

For more information about scams and fraud and to report a scam see www.actionfraud.police.uk.

Court summons scam

Members of the Public have received calls from people claiming that they are phoning from ‘Her Majesties Court’ (as opposed to the Magistrates Court) and that a summons has been issued for them and that they need to attend court in the next few days. In this instance an address was given for a Court in London.

The summons has allegedly arisen from a writ from a company that organises telephone preference services.

The caller then explains that the writ is for an amount in the thousands of pounds but that it has not yet been sent to the court.

In this particular reported incident, the member of the public realised what was going on and asked for a contact telephone number which was refused. They then mentioned contacting their own solicitor and the caller hung up.

Although thwarted in this instance, it is believed that the caller would have said that the writ could have been settled there and then over the phone without the need to attend court and asked for payment. The normal payment methods asked for in these types of scams are moneytransfer or via UKASH vouchers. If there is a problem once payment has been made using these methods it is highly unlikely that you will be able to get your money back.

Any summons to attend court would not be dealt with over the telephone.

Inheritance fraud

Inheritance fraud is when you are told that someone very rich has died and you’re in line to receive a huge inheritance.

A fraudster who claims to be a lawyer from overseas or some other legal official sends you an email or a letter. They tell you that a person sharing your family name has died and left behind a vast amount of money. 

The lawyer is administering the inheritance and has been unable to identify any of the dead person's relatives. As a result, the money will go to the government. The lawyer suggests that, because you share the same family name as the deceased, he could pay the inheritance to you. You could then split the money between you, rather than handing it over to the government.

The fraudsters will emphasise the need for secrecy and warn you not to tell anyone else about the deal. To hurry you into making a hasty decision, they will also stress the need to act quickly.

However, there is no inheritance and the person contacting you isn't a lawyer or legal official.

If you respond to the fraudsters, they’ll ask you to pay various fees – for example: taxes, legal fees, banking fees etc. – so they can release your non-existent inheritance.

Each time you make a payment, the fraudsters will come up with a reason why the inheritance can’t be paid out unless you make another payment. If you ask, they will also give you reasons why the fees can’t be taken from your inheritance and have to be paid up front.

If you become reluctant to pay a fee or suggest you can't afford it, the fraudsters will put pressure on you by reminding you how close you are to receiving a sum of money much greater than the fees you’ve already handed over, and of how much you’ve already paid out. 

The fraudsters may also ask for your bank details so they can pay the inheritance directly into your bank account. But, if you hand over your bank details, the fraudsters can use them to empty your account.

Are you a victim of inheritance fraud?

• You've received an email or letter informing you that someone you may be related to has died without leaving a will and you may be in line to inherit.
• You've paid fees to 'research specialists' who offer to sell you an estate report that includes information on the inheritance and how you can claim it.

What should you do if you're a victim of inheritance fraud?

• Report it to Action Fraud: www.actionfraud.org.uk/report_fraud
• End all further contact with the fraudsters.
• Don't send them any more money.
• Don't give them your bank details.
• If you have already given the fraudsters your bank account details, alert your bank immediately.
• If you receive any threats from the fraudsters once you have stopped co-operating with them, alert the police immediately.
• Be aware that you're now likely to be a target for other frauds. Fraudsters often share details about people they have successfully targeted or approached, using different identities to commit further frauds.
• People who have already fallen victim to fraudsters are particularly vulnerable to the fraud recovery fraud. This is when fraudsters contact people who’ve already lost money through fraud and claim to be law enforcement officers or lawyers. They'll advise the victim that they can help them recover their lost money – but request a fee. 

Ukash

Online cash company Ukash is warning consumers not to believe scammers who say they are able to reclaim bank charges or ask for loan fees to be paid using Ukash.

Several scams have involved consumers who have been contacted by telephone from overseas call centres. Consumers are harassed to make a fee payment to claim a bogus refund from banks, government, MoJ, OFT, or local the council. In other instances consumers have been cold called and offered loans where the first months repayment and other fees have to be paid for using Ukash before the loan is released. 

Once the 'fee' has been paid no loan is forthcoming. These criminals will quote genuine address details or website forums and claim it is their own organisation. A new trend is to use a payment scheme called Ukash, consumers purchase a cash voucher through a high street shop and quote the reference. The voucher works like cash and the money is gone.

Consumers who have lost money must act quickly to block payment.

Report this abuse to the money transfer agent

• Telephone Ukash: 0808 234 6244
• Alert from Ukash - Do not send Ukash to anyone asking for a fee to arrange a loan.

Report to police using Action Fraud

• Telephone: 0300 123 2040 (low call rate in the UK)
• www.actionfraud.org.uk/report_fraud

More information can be found on the Action Fraud website.

Online loan scams

Be wary when applying for a loan online. There are various lenders and brokers out there who are looking to lend you money in a few easy steps. Many of these businesses are legitimate; however there are some which are not. Once you have applied to a scam web site you will receive contact from them, normally in the form of a telephone call telling you that you have been approved for the loan. However before the money can be sent to you or before it arrives in your account the company may ask for some fees to be paid or even the first months repayment. Often this request is to have this paid by money transfer overseas. Once this money has been sent using this method there is no way to try and get it back when the loan does not materialise.

Before making any decisions on the internet you should always check who you are dealing with and do your research. Online businesses should have their name and a contact address on their site so you can find out who you are dealing with. You should also make yourself familiar with their terms and conditions which should also be made available. You should also check the reputation of a trader using forums online. Remember just because a web site ends in .co.uk it does not necessarily mean that they are based in the United Kingdom.

Further information

These are just a few of the scams that we get to hear about. If you have any other queries, or know of any other consumer scams out there, get in touch with Trading Standards.