CONS & SCAMS

The primary advice to you from the Colchester Crime and Disorder Reduction Partnership is never, never ever give any personal information to people undertaking street surveys, from unsolicited emails, post or from phone calls you have not initiated. Every single tiny piece of personal information about you, your home, work, family or business can help a scammer build up enough information about you to destroy your credit and banking rating and commit identity fraud in YOUR NAME!

Banks, building societies and financial institutions do not need to contact you to find out any personal information as they already have it!

There are several excellent other websites you can visit for more examples of the numerous cons and scam that are being used to con you, your family, friends, children and neighbours. Please take a look at the following and find out much more to help you avoid becoming a victim:

Staffordshire Trading Standards
http://www.staffordshire.gov.uk

South Tyneside Trading Standards
http://www.tradingstandards.gov.uk/

Rip Off Tip Off
http://www.ripofftipoff.net/typical_cons.htm

Safe from Cons
http://www.safefromscams.co.uk/MultiLevelMarketingScamsCategory.html

Personal and Finance
https://www.personalandfinanceconfidential.co.uk

American site but what starts there?
http://isw03.cityofmesa.org/police/fraud/default.asp

About Crime
http://crime.about.com/od/scams/Scams_and_Cons.htm

Wisebread
http://www.wisebread.com/the-scams-and-cons-that-could-clean-you-out

If you become aware of a scam not covered on this page please contact Peter Carrington via at: peter.carrington@colchester.gov.uk

A. What starts in America? 

SCENE 1. This is a new one. People sure stay busy trying to cheat us, don't they? A friend went to the local gym and placed his belongings in the locker. After the workout and a shower, he came out, saw the locker open, and thought to himself, "Funny, I thought I locked the locker. Hmmm" He dressed and just flipped the wallet to make sure all was in order. Everything looked okay - all cards were in place. A few weeks later his credit card bill came - a whopping bill of $1,000!

He called the credit card company and started yelling at them, saying that he did not make those transactions. Customer care personnel verified that there was no mistake in the system and asked if his card had been stolen. "No," he said, but then took out his wallet, pulled out the credit card, and yep - you guessed it - a switch had been made. An expired similar credit card from the same bank was in the wallet. The thief broke into his locker at the gym and switched cards.

Verdict: The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them. How much did he have to pay for items he did not buy? $900! Why were there no calls made to verify the amount swiped? Small amounts rarely trigger a "warning bell" with some credit card companies. It just so happens that all the small amounts added up to a big one!

SCENE 2. A man at a local restaurant paid for his meal with his credit card. The bill arrived, he signed for it, and the waitress folded the receipt and passed the credit card along. Usually he would just take it and place it in his wallet or pocket. Funnily enough, though, he actually took a look at the card and, lo and behold, it was the expired card of another person. He called the waitress and she looked perplexed. She took it back, apologized, and hurried back to the counter under the watchful eye of the man. All the
waitress did while walking to the counter was wave the wrong expired card to the counter cashier, and the counter cashier immediately looked down and took out the real card. No exchange of words --- nothing! She took it and came back to the man with an apology.

Verdict: Make sure the credit cards in your wallet are yours. Check the name on the card every time you sign for something and/or the card is taken away for even a short period of time. Many people just take back the credit card without even looking at it, "assuming" that it has to be theirs. FOR YOUR OWN SAKE, DEVELOP THE HABIT OF CHECKING YOUR CREDIT CARD EACH TIME IT IS RETURNED TO YOU AFTER A TRANSACTION!

SCENE 3: Yesterday I went into a pizza restaurant to pick up an order that I had called in. I paid by using my Visa Check Card which, of course, is linked directly to my checking account. The young man behind the counter took my card, swiped it, then laid it on the counter as he waited for the approval, which is pretty standard procedure. While he waited, he picked up his cell phone and started dialling. I noticed the phone because it is the same model I have, but nothing seemed out of the ordinary. Then I heard a click that sounded like my phone sounds when I take a picture. He then gave me back my card but kept the phone in his hand as if he was still pressing buttons. Meanwhile, I'm thinking: I wonder what he is taking a picture of, oblivious to what was really going on.

It then dawned on me: the only thing there was my credit card, so now I'm paying close attention to what he is doing. He set his phone on the counter, leaving it open. About five seconds later, I heard the chime that tells you that the picture has been saved. Now I'm standing there struggling with the fact that this boy just took a picture of my credit card. Yes, he played it off well, because had I not had the same kind of phone, I probably would never have known what happened. Needless to say, I immediately cancelled that card as I was walking out of the pizza parlour.

All I am saying is, be aware of your surroundings at all times. Whenever you are using your credit cards, take caution and don't be careless. Notice who is standing near you and what they are doing when you use your card. Be aware of phones because many have a camera phone these days.

When you are in a restaurant and the waiter/waitress brings your card and receipt for you to sign, make sure you scratch the number off. Some restaurants are using only the last four digits, but a lot of them are still putting the whole thing on there. I have already been a victim of credit card fraud and, believe me, it is not fun. The truth is that they can get you even when you are careful, but don't make it easy for them.

B. Business Health & Safety Scam

A letter under the general heading of "FINAL NOTICE" has been received by a small business in Colchester. This looks fairly official and purports to come from the "Health & Safety Enforcement Agency, Summerseat House, 39 Summerseat, Liverpool L3 6HB. It carries a logo similar to that of the HSE.

After a long blurb about how the health and safety legislation has changed recently and the dire penalties for non-compliance (containing many errors of facT), the letter concludes :

What to do now:

Step One:  Complete the order form overleaf, including all relevant details.

Step Two:  Enclose a cheque for £125, made payable to "REGISTRATION FEES".

Step Three:  Enclose the order form and cheque into the envelope provided and return to us within seven days.

Note:  If your payment is already on its way and has overlapped with this notice, please accept our apologies for having troubled you. Your compliance pack will be delivered within the next 28 days.

Note: This is quite obviously a scam to force people into buying a very expensive health and safety compliance pack. There is no registration fee involved for most businesses. Although a poster and accident book, as mentioned in the letter, are required, these can be bought locally for a few pounds.

C. Bankers Draft Scam

For this scam think car, expensive audio/photo equipment, caravan etc. A member of Colchester Borough Council staff has been subjected to a well-organised and very professional scam that even a major High Street bank didn't spot immediately. In all honesty, even I might have been taken in by this one.

How?

A car/caravan/audio equipment etc is advertised in a reputable magazine and a potential 'buyer' phones and asks all the right questions and negotiates a bottom line price with a promise to bring along a banker's draft, which is as good as cash, should the 'buyer' want the car. This person turns up late in the afternoon and presents as a professional business person wanting a nice car for business and travel etc. This person is well dressed, very courteous, polite, plausible and respectful and eventually agrees to buy the car and gives a banker's draft for £10,000 (it could be any amount) from a major High Street banking chain (building societies are also being targeted). However, the time of the 'purchase' is late afternoon when the bank is closing but a phone call to the bank confirms that the banker's draft is as good as cash.

The bank draft is presented the next morning or even the same day, and is such an excellent forgery, that even the bank/building society staff initially excepts it as payment! So, even if the CBC member of staff had taken it to the bank/building society, without handing over the car, it would still have been accepted as cash!

D. Credit Card Telephone Security Scam.

This information is worth reading. By understanding how the VISA & MasterCard Telephone Credit Card Scam works, you'll be better prepared to protect yourself.

One of our council employees was called recently from "VISA", and then on the following day by "MasterCard". Note, these callers rarely ask for your card number as they already have it! 

The scam works like this: Person calling says, "This is (name), and I'm calling from the Security and Fraud Department at VISA, MASTERCARD etc. My Badge number is 12460 or other false number. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card that was issued by (name of bank). Did you purchase an Anti-Telemarketing Device (or other item to worry you that someone has made a purchase in your name) for £249.99 from a Marketing company based in (name of any town or city)?" When you say "No" the caller continues with, "Then we will be issuing a credit to your account.

This is a company we have been watching and the charges range from £150 to £249, just under the £250 purchase pattern that flags most cards.  Before your next statement, the credit will be sent to (gives you your address), is that correct?" You say "yes". The caller continues - "I will be starting a Fraud investigation. If you have any questions, you should call the 0800 number listed on the back of your card and ask for Security. You will need to refer to this Control Number. The caller then gives you a 6 digit number. "Do you need me to read it again?" Here's the IMPORTANT part on how the scam works. The caller then says, "I need to verify you are in possession of your card". He'll ask you to "turn your card over and look for some numbers". There are 7 numbers; the first 4 are part of your card number, the next 3 are the security numbers that verify you are the possessor of the card. These are the numbers you sometimes use to make internet purchases to prove you have the card.

The caller will ask you to read the 3 numbers to him. After you tell the caller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other questions?" After you say No, the caller then thanks you and states, "Don't hesitate to call back; if you do....", and hangs up. You actually say very little, and they never ask for or tell you the Card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchase of £249.99 was charged to our card. Long story made short - we made a real fraud report and closed the VISA account. VISA is reissuing us a new number. What the scammers want is the 3-digit PIN number on the back of the card. Don't give it to them.

Instead, tell them you'll call VISA or Master card directly for verification of their conversation. The real VISA told us that they will never ask for anything on the card as they already know the information since they issued the card! If you give the scammers your 3 Digit PIN you think you're receiving a credit. However, by the time you get your statement you'll see charges for purchases you didn't make, and by then it's almost to late and/or more difficult to actually file a fraud report.  What makes this more remarkable is that on Thursday, I got a call from a "Jason Richardson of MasterCard" with a word-for-word repeat of the VISA scam. This time I didn't let him finish. I hung up! We filed a police report, as instructed by VISA. The police said they are taking several of these reports daily!  They also urged us to tell everybody we know that this scam is happening. 

E. Email Scams

Up to 70% of global email traffic is now Spam, compared with just 8% two years ago. Look out for the following tricks.

F. I Have Millions For You - African – South American – Asia Scam

This is how the scam starts with the following type of email.

G. You’ve won the lottery or fantastic cash prize from America – Canada - Europe– Aisa – Africa Etc Etc!

 <mycheerfulgatelotto3@atlas.cz>
27/08/2004 08:25 AM

To: mycheerfulgatelotto3@atlas.cz
cc:
Subject: winning notification

AV 5 CASTILLA MADRID SPAIN
FROM:CHEERFULGATE AWARD DEPT.
REF: SUN/2010-968091/03
BATCH: 54/010/IPD
DATE: 27/08/2004

RE: EMAIL WINNING CONFIRMATION NOTICE
We are glad to inform you that your E-mail address appears as the confirmed Winner of our last CHEERFULGATE email lottery program held on the 24th August 2004.Your e-mail address attached to ticket number 20675543256-786 with Serial number 3765-75 drew lucky numbers 7-12-18-24-32-45, which Consequently won in the 2nd category, you have therefore been approved For a lump sum payment of Five Million five hundred thousand united state dollars(US$5.5,000.000).
CONGRATULATIONS!!

This promotional program takes place every year. All participants were selected through a computer ballot system drawn from over 100,000 companies and 50,000, 000 individual email addresses and names from all over the world.

In order to avoid unnecessary delays and complications please remember to quote your reference number and batch numbers in all correspondence. We ask that you keep your winning information confidential until your claim has been processed and your money remitted to you. Remember all winnings must be claimed not later than 20th of September 2004. After this date all unclaimed funds will be included in the next stake. To file for your claim or for further details, please contact our agent Mrs Paula Brown at paulabrown2000@myway.com

In respect of our commitment towards helping the less privilege, we ask that you voluntarily contribute 1% of your Global winnings to any charity organization you desire at your convenience. Congratulations once more from our members of staff.

Mrs. Pisa Anul
Global Winning co-ordinator

H. Question Distraction & Robbery Scam

Police in Cambridge are warning people to be wary of a 'question' scam in which thieves work in pairs to steal mobile phones or purses from their victims. The warning is being issued by the police after 30 separate incidents have been reported to the police in the last three months.

It would appear that a child approaches their potential victim with either a map, menu or leaflet. The child then places the item over the person’s bag and asks a question. It is only later when the person goes in their bag that they realise their purse or mobile phone has been taken. On a number of occasions witnesses have reported seeing the man, acting suspiciously, hanging around the area and leaving with the child a short time later.

This is organised crime and works by a child approaching an adult asking them for either directions, a tissue or just engaging them general conversation. While the person is distracted the child starts rummaging through their belongings under cover of their prop. Most of the reports have indicated that these distraction thefts are being carried out by people of Eastern European appearance. People should be vigilant and keep your mobile phone or handbag with you at all times, especially if you are approached in this way.

I. Mobile Phone Scam

We are aware of the following mobile phone scam, which reads as follows:
There is a new kind of mobile phone scam. A missed call will show on your mobile phone. The number is 0709 020 3840! The last four numbers may vary, but the first four numbers will remain the same! If you call this number back, you will be charged 50 per minute. It may not seem much but very quickly adds up. If you then multiply all the calls that are made it turns out to be a pay day for the villain! People have complained about their phone bills, once they have realised the cost of the call, but apparently, this is completely legal. So beware, do not call back numbers beginning with 0709

We have spoken to the relevant departments during the course of the day, and found that this scam is actually true. Please advise your users not to return any missed calls beginning with an 0709 prefix, as they will be liable for the cost of the call.

J. Mobile Phone Virus

K. More Mobile Phone Scams

If you answer the call, your phone will be infected by a virus. This virus will erase all IMEI and IMSI information from both your phone and your SIM card, which will make your phone unable to connect with the telephone network. You will have to buy a new phone. 

This information has been confirmed by both Motorola and Nokia. There are over 3 Million mobile phones being infected by this virus in all around the world now.  You can also check this news in the CNN web site

There are a couple of scams going on at the moment which are increasing in frequency you might like to be aware of. They are on both home and mobile numbers and applies to home and/or work telephones - landlines and mobiles.

If you do receive one of these calls, upon answering the telephone, you will hear a recorded message congratulating you on winning an all expenses trip to an exotic location. You will then be asked to press 9 to hear further details. If you press 9 you will be connected to a premium rate line that costs approximately £20 per minute. Even if you disconnect immediately, it will remain connected for a minimum of 5 minutes, costing around £100. The final part of the call involves you being asked to key your postcode and house number (which has other serious consequences). After a further 2 minutes you will receive a message informing you that you are not one of the lucky winners. The total bill will be £260.

Since the calls are originating from outside the UK, BT and other telephone companies are left relatively powerless to act. The only safe solution is to HANG UP before the message prompts you to press 9; even safer is to HANG UP on any unsolicited 'free offer' call.

This appears to be a variation on a theme, warnings have been sent previously regarding calls made by individuals claiming to be engineers conducting a test on the line and asking for 9, 0# and text messages similar to the routine described above. DO NOT DIAL 9 (OR 9,0# OR 0,9#) FOR ANYONE! BT has been contacted and confirmed the details as being true.

There is another scam operating on Mobile Phones. A Missed Call comes up. The number is 0709 020 3840. The last four numbers may vary but certainly the first numbers will remain the same. If you call this number back, you will be charged £50 per minute. People have complained about their phone bills, once they have realised the cost of the call but apparently this is completely legal. So beware, do not call back numbers beginning with 0709.

L. Sickness and Medical Scam

Nastya Gontarovskaya, 16 years, a sarcoma, 31 hospital of SPb

Friends, excuse that I address to you for the help, but I have decided to address to you owing to illness of my unique daughter Nastya. She is 16 years now. She since September, 2004 is in Saint Petersburg in hospital.

In October, 2003 she played tennis, has received an easy trauma, and only in May to 2004 it have put the terrible diagnosis: a malignant tumour of soft fabrics a sarcoma in area sacrum. And doctors have told that already a tumour in such condition that at us in Odessa can make nothing. Have told that urgently went somewhere or to Kiev, in Moscow or to Europe to rescue the girl. We next day have justify to Kiev.

Difficult operation but as appeared then has been lead have removed not all.

Three months Nastya could not rise, as the seam in any way did not grow together, and as started to heal, first attributes of a new tumour, evolved of the rests of completely not removed first tumour have appeared. The researches lead through some days have shown, that the new tumour in the sizes has exceeded previous and having broken off a place of a seam a bleeding wound has come to light.

In the general opinion of doctors already nothing could be made. But nevertheless have dared to use last chance and have addressed for the help to Russian professor Tarasovu V.A. (to the known surgeon with a world name which operates patients at 4-th stage of a cancer) which has agreed to lead operation. By special flight Nastya has been urgently delivered to Saint Petersburg (as appeared in a consequence if have taken off for 1 day later already would be late).

On September, 21st 2004 a brigade of surgeons led by the professor Tarasov has lead heavy operation. 11 hours struggled surgeons for life Nastya. Operation has passed successfully in spite of the fact that the professor has warned us about a high degree of risk of a lethal outcome or about possible amputation all justify leg. Nastya has remained the leg on a place is alive also.

In December 2004 a professor Tarasov has transferred Nastya in special children's branch of oncology in Saint Petersburg in 31 hospital (on Krestovsky island) for carrying out of chemotherapy and an irradiation which is headed by professor Belogurova M.B.result of carrying out of six chemotherapy have struck doctors - illness began to recede (in fact before the beginning of chemotherapy there was a general opinion, that chances at the child are not present at such diagnosis and presence of metastasises in easy, Nastya then still laid and weighed 35 kg). Metastasises have strongly decreased also them have already removed from easy. Gradually Nastya began to go in the beginning on crutches, the leg began to become stronger.

It is already made 10 chemotherapy, there is a beam therapy (25 sessions), and doctors still chemotherapy are going to make. Results of treatment very good, Nastya it is well restored after chemotherapy, for the first time began to recover (before operation in Peter weighed 35 kg (including a tumour of 1 kg) at her growth 162, and now has reached 45 kg. Can already go itself with a stick. Doctors are very pleased with results.

Treatment for us very expensive. We in Peter in fact foreigners and to us it is necessary to pay for all: and for a presence in hospital Nastya with mum - monthly about 1500 dollars. The USA, for medicines and for treatment about 1000 dollars. The USA, let alone a feed and other operational expenditure (and so every month, and in Peter Nastya with mum since September 2004). I how many can I get money to treatment, friends have very much helped us. But the Ice crust in fact still it is necessary to continue treatment in Peter completely to recover, and it can occupy even a month 4 precisely.

 For Nastya In 16 years the childhood and a youth has ended. In a flash terrible illness and the transferred sufferings have made her adult. But it seems to me, illness of her has not broken, she as is persistent, as studied with distinction at school (which and has not stopped), continues to study foreign languages. Nastya freely knows French (already being the patient in 15 years has protected full diploma DELF of the Ministry of Education of France), speaks in English, has diplomas and letters from the first on the third place for participation in city and regional Olympiads on English and French to languages. Already being in hospital has taken a great interest in drawing.

As that Nastya on the adult has told: « I WANT THAT ANYBODY FROM my FRIENDS FAMILIAR AND CLOSE AT ALL TIMES NEVER SUFFERED, AS I SUFFER. LET ON me ALL WILL END THEIR SUFFERINGS ». And only sometimes in the evenings it happens the melancholy finds and Nastya through tears asks: MUM, WHEN I BACK TO ODESSA?

Excuse for this deviation, I am simple do not know as still briefly to describe those sufferings which has transferred Nastya and we together with her. We every day address to the God with the unique request, for healing of a daughter from this terrible illness.

Yours faithfully, the daddy of the girl, Sergey Gontarovsky.
Home address: Odessa - 65015,
Williams 56/3, sq. 58
Gontarovsky Sergey Vladimirovich 

M. Get £200 For Opening a Savings Account Scam

This is a recent scam and is on a similar theme to the emails from ‘banks/building societies’ asking to ‘clarify’ your personal details and passwords for a variety of false reasons. These scams are very professional produced and have fooled many hundreds of people. You have been warned!

This particular scam is based upon you receiving an email from your ‘bank/building society’ offering you a £200 plus bonus to open a savings account with a high rate of interest to catch your attention. Guess where the questions take you if you are foolish enough to believe the scam….Name, address, post code, date of birth, maiden name, password, credit card number, etc etc!

N Chain Letter Scam

Chain letters are a type of pyramid scheme that is spread through the post, or sometimes by email. They promise a large financial return for a relatively small cost.

Typically, the letter will ask you to send a small amount of money to everyone listed in the letter. You then put your name on the list and send out copies of the letter to as many people as you can. The letter claims that by doing this, you will receive a large amount of money in a short space of time.

Only the people who have any real chance to make money are the people who start the scam. Scammers often send out many thousands of letters to people using mailing lists that they have bought off another company. In a chain letter scam you lose your money in two ways. First—you send money to the scammers who sent you the letter. Second— you waste a lot of money on postage and photocopying costs.

Warning signs

You receive a letter or email promising you money or good luck if you copy it and send it on to a number of other people.

The letter or email may suggest that if you don’t forward it on you will have bad luck or lose out on a fantastic opportunity.

Often a token amount, say five cents, is included in the letter ‘as a demonstration of good faith’. The letter may also recommend that you do this when you send out your letters.
The letter contains claims like ‘this is not a scam’ or ‘this is not a pyramid scheme’.
The letter contains testimonials from people who claim to have ‘made a fortune’ by taking part.

Protect yourself from chain letters

If it looks too good to be true—it probably is. Use your common sense: the offer may be a scam. Contact your local Trading Standards Office for advice.

Beware of products or schemes that claim to guarantee income or winnings.

Remember that family members and friends may try to involve you in a scam without realising that it is a scam.

Do your homework

Chain letters promise huge returns or tell you that not participating will bring you bad luck. Don’t let these claims blind you to the fact that chain letters are pure scams. Even if you thought you could make money, would you want to do it by scamming other people who would then have your address?

Decide

If you have received a chain letter your best response is to throw it out. You will only be wasting your time and money by forwarding it on to other people. If you do forward it on to your friends and relatives, they will probably be angry when they quickly realise it is a scam.

O Pyramid Scheme Scam

Pyramid schemes are very risky ‘get-rich-quick’ schemes that can cost a lot of people a lot of money. Promoters at the top of the pyramid make their money by having people join the scheme. Then they pocket the fees and other payments made by those who join under them.

In a typical pyramid scheme, a member pays to join. The only way for the member to ever recover any money is to convince other people to join up and to part with their money as well.

In contrast, people in legitimate multi-level marketing earn money by selling genuine products to consumers, not from the recruiting process. Be aware though, some pyramid scheme promoters disguise their true purpose by introducing products that are overpriced, of poor quality, difficult to sell or of little value. Making money out of recruitment is still their main aim.

People often hear about pyramid schemes from friends, family or neighbours. Normally, pyramid schemes recruit members at seminars, home meetings, over the phone or even by mail. Now email, usually as spam, is increasingly used to recruit members as well.

For the scheme to work so that everyone can make a profit there would have to be an endless supply of new members. In reality, the number of people willing to join the scheme (and therefore, the amount of money coming into the scheme) dries up very quickly. When the pyramid collapses (and they all do) relationships, friendships and even marriages can be destroyed over money lost in the scam.

Warning signs

You are offered a chance to join a group, scheme, program or team where you need to recruit new members to make money.
The scheme involves offers of goods or services of little or doubtful value that serve only to promote the scheme (such as information sheets).

There is a big up-front cost to pay for large quantities of goods.
There are no goods or services being offered for sale by the scheme.
The promoter makes claims like ‘this is not a pyramid scheme’ or ‘this is totally legal’.

Protect yourself from pyramid schemes

If it looks too good to be true—it probably is. Use your common sense: the offer may be a scam. Do not let anyone pressure you into making decisions about money or investments: always get independent financial advice.You can contact your local Trading Standards Office

Be aware of products or schemes that claim to guarantee income or winnings.

Remember that family members and friends may try to involve you in a scam without realising that it is a scam.

Do your homework

Pyramid schemes often look like legitimate multi-level marketing schemes. To tell the difference between them, ask yourself these two questions:

As with any other investment decision, you should seek independent advice (for example, from a lawyer or accountant) before you make a decision.

Decide

If you believe that an offer is a pyramid scheme, do not take part—it is very likely that you will lose your money and you could be breaking the law. If the offer was made to you by a friend or family member, you should also warn them that they might be involved in a risky and illegal scam.

If you believe that the offer could be a legitimate multi-level marketing scheme, make sure you get independent advice before signing up or investing any money.

Report them

If you think you might be involved in a pyramid scheme, stop participating in the scheme immediately and contact your local Trading Standards Department. You should also warn other people you think may have been approached about joining the scheme.

P Guaranteed Employment / Income Scam

A guaranteed employment or income scam claims to guarantee you either a job or a certain level of income. The scammers usually contact you by spam emails and the offers often involve the payment of an up-front fee for a ‘business plan’, certain start up materials or software. The scammers might ask you to make goods which will never be sold or sell you software that doesn't’t do what they claimed it would.

Some scammers also offer ‘career’ services that ask you to subscribe to a job directory or list and ‘guarantee’ a job.

Warning signs

You receive a spam email offering you either a guaranteed income or guaranteed job.
The advertisement requires you to send a fee to receive your start up materials.
The advertisement only specifies a post office box address and not a street address.
The email or letter may not be addressed specifically to you.
Protect yourself against guaranteed employment or income scams
Remember there are no get-rich-quick schemes: the only people who make money are the scammers.
Beware of products or schemes that claim to guarantee income or winnings.
Beware of job offers that require you to pay an upfront fee.
Money laundering is a criminal offence: do not agree to transfer money for someone else.
NEVER send money, or give credit card or online account details to anyone you do not know and trust.
Do not open suspicious or unsolicited emails (spam): delete them.

Do your homework

Before you respond to an advertisement that guarantees you employment or a certain income, ask yourself why somebody would use spam emails to recruit people? Is the company reputable and well-known? Could the offer be part of a scam?

Very few, if any, reputable businesses offer guaranteed jobs or income through spam emails. Any job offer you receive through a spam email is likely to be a scam. For other types of advertising, you should still be very careful.

Find out what the job actually involves and what evidence they have to support their claim that you are guaranteed a certain level of income. You should check with your fair trading agency who might be able to help you decide if the offer is legitimate. Always check if the company has a refund or buy back policy if you are required to purchase anything up front and don’t deal with a company or person that does not have a physical street address (as they can be very difficult to contact later on).

Decide

NEVER reply to an unsolicited or spam email, as this may encourage further contact from the spammers. Remember that if something sounds too good to be true, it probably is. Very few, if any, reputable businesses will guarantee you a job.

Also remember that jobs which involve selling a product can rarely guarantee any income.

Q Work From Home Scam

Work-from-home scams are often conducted through spam emails, or advertisements on notice boards and shop windows. Most of these ads are not real job offers. Many of them are actually fronts for a money-laundering scam, an up front payment scam or a pyramid scheme.

You might receive an email offering a job where you use your bank account to receive and pass on payments for a foreign company. These ‘job offers’ promise that you will receive a percentage commission for each payment you pass on. Transferring money for someone might be money laundering and you could wind up in trouble yourself for taking part in these ‘jobs’. Sometimes, these scammers are just after your bank account details so they can clear out your account.

You might also be offered a ‘job’ doing something like stuffing envelopes or promotions. You will be required to pay for a starter kit or some other product before you can get started. However, once the money is paid, you may receive nothing at all, or what you do receive could just be instructions for conning other people into joining the same scheme.

Another type of work from home scam involves a job putting together or assembling a product using materials that you have to buy from the ‘employer’. After they pocket the money you pay for materials, they may refuse to pay you for some or all or you work because they claim it is not of a high quality.

Warning signs

You receive a job offer claiming that you can make a lot of money with little effort by using your home computer.

You receive an offer for a work from home job that requires you to pay a registration fee or to send your home address for more information.

You receive information about a job which only requires you to transfer money for someone else. Protect yourself against work from home scams. Remember there are no get-rich-quick schemes: the only people who make money are the scammers. Beware of products or schemes that claim to guarantee income or winnings. Beware of job offers that require you to pay an up front fee.

Money laundering is a criminal offence: do not agree to transfer money for someone else. NEVER send money, or give credit card or online account details to anyone you do not know and trust. Do not open suspicious or unsolicited emails (spam): delete them.

Do your homework

Before you respond to a job advertisement, try to find out if the company is reputable and well-known. If the job offer involves transferring money for someone else, ask yourself if you really want to get involved in something that is likely to be money-laundering and is likely to attract police attention.

You should check with your local Trading Standards Department for information to help you decide if the offer is legitimate. Always check whether there are any special legal requirements, such as licences, or other constraints on working from home. If the job on offer involves making or selling a certain type of product or service, find out if there really is a market for it. Also ask yourself if the amount of any fees or other up front costs seems excessive. Always ask for an offer in writing. If it is a legitimate job offer there won’t be a problem with you getting advice before signing a contract.

Another way of figuring out if the company or job is real is to ask for references from other people who have done the work and make the effort to speak to these people. You should also check if the company has a refund or buy back policy if you are required to purchase anything up-front.

Decide

Remember that most people find it difficult to make lots of money working from home, despite whatever promises are made. Make sure you have given a lot of thought to the issue before signing up or sending a payment off for a work from home opportunity.

NEVER reply to an unsolicited or spam email as this may encourage further contact from spammers.

R Transferring Money For Someone Else Scam

Offers that involve transferring money for someone you don’t know are nearly always a scam. They could also be money laundering which is illegal. Money laundering is when somebody tries to ‘launder’ money they have earned from a crime to make it look like it came from a legal source. They do this by putting the money through a series of bank accounts to hide its original (and usually illegal) source.

If you are approached with this scam, you will be asked to transfer money for somebody using your own bank account or a bank account that you set up for this purpose. The approach could come in a number of ways—by a letter similar to the Nigerian scams, which means you have to hand over bank account details to a stranger. The scams often offer you a commission simply for receiving money into your bank account and then transferring it out again. The commission can be as high as 20% or more of the amount transferred.

If you agree to take part, the scammer could use your account details to clean out your savings. However, some scammers actually do send money across. This money might come from organised crime or from the proceeds of other scams like internet banking scams.

You may even find that the scammer is keeping their word and lets you keep a small percentage of the total transferred. However, you may also find that the scammer then asks you why you have not transferred some money that you did not receive. The scammer might then pressure you to make up for the ‘missing payment’ out of your own pocket.

Even if none of this happens, if you agree to transfer money in this way you may find that you are being used to cover someone else’s tracks. If the authorities follow the money trail from a crime that the person scamming you was involved in, it could lead straight to your bank account.

Warning signs

You receive an offer that involves you receiving and sending money electronically. The offer requests your account details so that money can be sent to your account. There is a promise of employment simply by using your bank account, perhaps as an ‘account manager’ or ‘transfer manager’.

The scammer will suggest that they need an account in your country so they can conduct their business (for example, trading shares).

Protect yourself from money transfer scams. Use your common sense: the offer may be a scam. NEVER send money, or give credit card or online account details to anyone you do not know and trust. Beware of products or schemes that claim to guarantee income or winnings.

Beware of job offers that require you to pay an up front fee. Do not open suspicious or unsolicited emails (spam): delete them. Remember there are no get-rich-quick schemes: the only people who make money are the scammers. Money laundering is a criminal offence: do not agree to transfer money for someone else.

Do your homework

If you have been approached by someone asking you to transfer money for them, delete the email, throw away the letter or say no. Ask yourself—why would anyone want to pay someone that they do not know to transfer so much money?

These offers are always scams. You should remember that transferring money for someone else could be money laundering. If you agree to help the scammer by letting them use your bank account you could be getting yourself in serious trouble.

Decide

You should NEVER give out your personal or bank account details to somebody you don’t know and trust. Don’t let the fact that an offer sounds enticing or genuine trick you. If the offer came in an email DO NOT respond to the email, or try to unsubscribe from it. This will only confirm to the scammers that your email address is valid.

If you still think the offer may be genuine, make sure you seek the advice of an independent professional (lawyer, accountant or financial planner) before providing ANY personal details.

S Cheque Overpayment Scam

If you are selling something over the internet or through the classified adds, you may be targeted by a cheque overpayment scam. You might receive an offer from a potential buyer (often quite generous) and accept it. The scammer then sends you a cheque, but the cheque is for more money than the agreed price.

The scammer will invent an excuse for the overpayment. For example, the scammer might tell you that the extra money is meant to cover the fees of an agent or extra shipping costs. The scammer might just say that it was a mistake they made when they wrote the cheque.

The scammer will then ask you to refund the excess amount—usually through an online banking transfer or a wire transfer (such as Western Union). The scammer is hoping that you will do this before you discover that their cheque has bounced. You will have lost the money you paid into their account, and if you have already sent the item you were selling, you will lose this as well. At the very least, the scammer will have wasted your time and prevented you from accepting any legitimate offers.

Warning signs

Somebody makes an offer to buy something you have for sale and wishes to pay more than the agreed price.

You are sent a cheque in excess of the agreed price and asked to send the balance to a specific bank account or through a wire transfer.

Protect yourself against cheque overpayment scams. Use your common sense: the offer may be a scam.You can contact your local Trading Standards Department

Make sure that cheque's have been fully cleared by your bank before transferring or wiring any refunds or overpayments back to the sender.

Do your homework

If you have been sent a cheque for more money than you agreed on DO NOT agree to repay the difference before the cheque has been cleared by your bank. Your best option is to refuse to deal with these cheque's at all. Send the cheque back and ask them to send you a cheque for the agreed amount.

Even if the excuse given sounds realistic, be very wary of requests to refund the excess money by instant means like internet banking or wire transfers. Look closely at the cheque they sent—is it from a bank that you recognise and how long will it take to clear?

Decide

Don’t let excuses that sound legitimate and realistic distract you—send the incorrect cheque back and ask for another one.

If you think the reasons for the overpayment may be genuine but you cannot send the incorrect cheque back (for example, if you have already deposited it), make sure that the cheque has been cleared by your bank or credit union before returning the extra amount.

T  Up-front Payment Scam

An up front payment scam is a scam which asks you to send money up front for a product or ‘reward’ later. The ‘reward’ may be in the form of a pre-approved loan or credit card application, a prize, a holiday or a cut of a profit from some activity.

You might be asked to provide your bank account details to the scammer or to pay fees to gain access to what the scammer is offering.. If you send money to these scammers you may find that you receive nothing in return, or that you don’t get what you expected.

Warning signs

You receive an unsolicited email, letter or telephone call promising you something exciting or valuable for a small up front payment or fee.

You are offered a ‘reward’ such as a prize, a holiday or a pre-approved loan or credit card application.

The offer involves transferring money for someone else.

The scammer will tell you that you need to pay an up front cost such as, an administration fee, taxes or postage and shipping costs.

The offer arrives out of the blue. The ‘reward’ is much greater than the amount that you are asked to pay up front

Protect yourself from up front payment scams

Use your common sense: the offer may be a scam. Do not send any money or pay any fee to claim a prize or lottery winnings. Never send your personal, credit card or online account details through an email.

Money laundering is a criminal offence: do not agree to transfer money for someone else.

Do your homework

If you have been offered a pre-approved credit card, loan application or a fabulous prize or holiday, delete the email, throw away the letter or say no. Banks and credit unions will only approve you for a credit card if you meet their criteria. No one can guarantee these approvals in exchange for a fee.

If you are interested in the offer, you should check to see if there are any conditions attached to the offer or other fine print that may contain nasty surprises. You can also ask your local fair trading agency if they think the offer sounds genuine.

Decide

You should NEVER give out your personal or bank account details to somebody you don’t know. Remember that no legitimate credit card or loan provider will ask you to pay a fee to guarantee approval. Don’t let the fact that an offer sounds enticing or genuine trick you.

If you think the offer may be genuine, make sure you seek the advice of an independent professional such as a lawyer, accountant or financial planner before committing any money.

U  Unexpected 'prizes' Scam

An unexpected or fake prize scam will tell you that you have won a prize or a competition. There are often costs involved with claiming your prize, and even if you do receive a prize it may not be what was promised to you.

These scams work by taking your money and then not sending the prize, or sending a prize that is not what you expected. The scammers make their money by making you pay fees or call their premium rate phone numbers (usually starting with 190) to claim your ‘prize’. These premium rate calls can be very expensive, and the scammers will try to keep you on the line for a long time, or ask you to call a different premium rate number.

You could be notified that you have won a prize in any number of ways—by mail, telephone, internet or in person.

You will lose any money that you pay and you may not receive a prize. Even if you do receive a prize, it might not be what you expected.

Warning signs

You are approached with the offer of a guaranteed prize. To claim your prize you have to buy a ticket. You have to pay fees to collect your prize. You have to call a premium rate phone number  to claim your prize. The approach claims to be legal. The address to send your fee to is a PO box number. Protect yourself from unexpected prize scams Use your common sense: the offer may be a scam.

Do not send any money or pay any fee to claim a prize or lottery winnings. Be careful of phone numbers beginning with 190. These are charged at a premium rate and can be very expensive.

Look out for SMS and MMS numbers that start with 19. These are charged at a premium rate (sometimes even for receiving a message) and can be very expensive.

Read all the terms and conditions of any offer very carefully: claims of free or very cheap offers often have hidden costs.

Do your homework

If you think the prize offer might be genuine, contact your Trading Standards Department, who may be able to tell you more about the offer and if it is likely to be a scam.

Be sure that you know what the prize actually is—what conditions are attached to it and how much it will cost to claim it.

Letters, emails and other approaches claiming that you have won an unexpected prize or a competition you did not enter are almost always scams.

Decide

If you are told that you’ve won a prize when you haven’t entered any competitions do NOT respond. Do not write back, do not call the telephone number listed and do not send any money, credit card details or other personal details to the scammers. Responding only indicates that you're interested and you could end up with many more fake offers in the future.

If it is anything other than a registered competition or one you remember entering—say no! 

V Requests For Your Account Information ('phishing' scams)

Phishing’ refers to emails that trick people into giving out their personal and banking information. These emails seem to come from legitimate businesses, normally banks or other financial institutions. The scammers are generally trying to get information like your bank account numbers, passwords and credit card numbers. This information is then used to steal your money.

Phishing messages and emails often look genuine. They seem to come from a financial institution or other company and they use what looks to be genuine internet addresses. They often copy an institution's logo and message format. This is very easy to do. It is common for phishing messages to contain links to a website that is a convincing fake of the real company's home page.

The website that the scammer’s email links to will have an address (URL) that is similar to but not the same as the real bank or financial institution’s site.

Warning signs

You receive an email claiming to be from a financial institution. This message may seem to be from your bank or from a bank that you don’t have an account with. The email contains a link which leads you to a website where you are prompted to enter your bank account details.

The email does not address you by your proper name.

The email might contain typing errors and grammatical mistakes.

The email might claim that your details are needed for a security and maintenance upgrade, to ‘verify’ your account or to protect you from a fraud threat. The email might even state that you are due to receive a refund for a bill or other fee that it claims you have been charged.

Protect yourself from phishing scams

NEVER send money, or give credit card or online account details to anyone you do not know and trust.

Do not give out your personal, credit card or online account details over the phone unless you made the call and the phone number came from a trusted source. Do not open suspicious or unsolicited emails (spam): delete them. Do not click on any links in a spam email, or open any files attached to them.

Never call a telephone number that you see in a spam email.

If you want to access an internet account website, use a bookmarked link or type the address in yourself: NEVER follow a link in an email. Check the website address carefully. Scammers often set up fake websites with very similar addresses.

Never enter your personal, credit card or online account information on a website that you are not certain is genuine.

Never send your personal, credit card or online account details through an email.

.Do your homework

If you receive an email claiming to be from a bank or other financial institution that asks you to enter your details—delete it! A legitimate bank or financial institution will NEVER send an email like this.

If the email appears to be from your bank or financial institution, and you think it might be genuine, telephone your bank or financial institution to let them know about the email and ask their advice. Do NOT call any telephone numbers that are listed in the email. Instead, use a phone number that appears on your statement or card, or in the phone book. Many banks and financial institutions now have specialised internet security staff who can help you.

Decide

You should NEVER give out your personal or bank account details to somebody you don’t know and trust. Don’t be fooled by an email that looks legitimate or appears to link to a genuine web site. If you think the email may be genuine, ALWAYS contact your bank to confirm an e-mail’s legitimacy before replying. Your best defence is to delete the email straight away.

Metre Readings

There appears to be a number of residents who have reported receiving phone calls asking for their metre reading which no utility company would need to do without contact from you in the first place. The ‘caller’ then tries to ‘clarify’ your banking and payment details which appears to be an attempt to find out more about whether you live alone and to obtain personal banking details or information about you. This information could then be used to raid your bank account or as part of stealing your identity to commit fraud in your name!

W Other Scams

Other scams that the Colchester Crime and Disorder Reduction Partnership has become aware of are: