If you?re reading this article and feeling smug that you can spot a scam a mile off, your confidence could actually make you more vulnerable, says Donna Werbner of fool.co.uk.
According to the Office of Fair Trading (OFT), more than three million people lose around ?3.5 billion every year in scams ? and these include bogus clairvoyant or psychic predictions, get rich quick schemes and miracle health cures (the type of scams we aren?t always prepared for).
With these scams scepticism is your greatest weapon, after all, what are the odds that someone you don?t know, who has contacted you out of the blue will give you something for nothing?
If it looks too good to be true, unfortunately, it usually is. So if you get a letter through the post saying you’ve won a prize in a lottery or draw that you haven’t even entered, bin it straight away.
Other typical scams include bogus clairvoyant or psychic predictions, get rich quick schemes or miracle health cures.
With these scams, scepticism is your greatest weapon. After all, what are the odds that someone you don’t know, who has contacted you out of the blue, will give you something for nothing?
According to the OFT, most scammers will try to get you to do one of the following:
? Send money upfront. This may be called “an administration fee” or a “tax”, but rest assured: whatever name it goes by, it’s a rip-off. Don’t send any money until you’ve checked the company out via Consumer Direct and talked to a professional or family and friends.
? Give them your bank details. This is known as ?phishing’ and the request often comes in the form of an email. Whatever you do, don’t click on any link in the email – even an ?unsubscribe’ link, as it only notifies the scammers that they have reached a real live human being. Instead, forward the email to phishing-report@us-cert.gov (you can find out how to do so without opening the email here).
? Ring a premium rate number. This will start with 090 if it is a UK premium rate number, but watch out for international numbers too, which should start with 00. You may be told to call this number in order to claim a prize, or to rearrange a parcel delivery. If you are uncertain whether or not to call, you can check the number via the PhonepayPlus website.
Unfortunately, this type of scam is adapting all the time and there is another variation, often targeted at young people, which arrives by text, declaring that “someone” fancies you, and you need to call the premium rate number in order to find out who it is. Teens are particularly at risk, so warn them not to respond.
? Buy something to get your prize. Don’t be tempted, no matter how slick and professional the leaflet or letter is. Scammers know that the persuasiveness of their argument is often judged by how pleasant, well-spoken and kind they appear on the phone or at your door, or how official their documentation looks.
Often, an easy way to distinguish a scammer from a legitimate company is if they give a PO box number as their address and ask you not to tell anyone about the deal.
They rush you into a decision
Scammers will always try to push you to act sooner, rather than later, before you have time to think it through thoroughly. That’s why the OFT advises people to stop, think and think again. Take your time and don’t be rushed into doing something you’ll regret later.
Often, scammers can be very persistent and try to catch you unawares: if you feel you are being harassed, report them to your local trading standards board or even the police. If it’s a local firm, you could also try to expose the scam and warn others in your town by contacting your local newspaper.
What to do if you spot a scam
Remember, if you suspect you have been a victim of a scam, you can call Consumer Direct on 08454 040506 for help and advice. The same goes if you’re ever in any doubt about whether a request for money/data is or isn’t legit. Similarly, you can complain about a premium rate telephone service by calling PhonepayPlus on 0800 500 212. By reporting any scams you come across to the relevant authorities, you could stop it from happening to thousands of other people.
Finally, one of the best ways to stop scammers is to raise awareness about their nasty tricks. So if you know someone who may be particularly vulnerable to scammers, pass on these tips. Maybe, if we all do our bit, we can stop the scammers from swindling any more victims…