Scams checklist

Scams come in different forms - letters, email, telephone calls and text messages.

Promotions of this kind are a dishonest attempt to trap you into parting with your money.

If you are approached and offered something that seems too good to be true, before you respond ask yourself these questions:

• Was the offer unsolicited?

• Does it look too good to be true?

• Do I have to respond 'at once' - what's the rush?

• Do I have to make a purchase to win a prize?

• Do I have to ring a premium rate telephone number?

• Do I have to give my bank or credit card details?

• Do I have to send the money to a PO Box number?

• Am I asked to keep it confidential?

• Can I afford to lose the money?

Before you part with any money, take legal or professional advice because the chances are, once you have sent it, you will never see it again.

Source: Consumer Direct United Kingdom

Know who you're dealing with

You can reduce your chances of being swindled by knowing who it is you are dealing with.

• Ask for the name of the person you are speaking to and who they represent.

• Take notes of conversations, including dates, times, names and important points.

• Ask for an explanation of anything you don't understand.

• Read letters carefully and seek professional help (e.g. an accountant or a solicitor) if significant money, time or responsibilities are involved.

• If you want to check out the bona fides of a company, contact Companies House or the Financial Services Authority.

• Find out who you are dealing with. Independently verify any claims made by a sales person, investment adviser or advertisement.

• Make sure that any company you deal with complies with the applicable legislation (In the UK, all companies must be registered with Companies House).

• Only do business with companies you know and trust.

• Make sure you fully understand all the terms and conditions of any offer made to you

• Take your time before you make any decision.

• Don't provide any financial or other personal information before you establish whether the company is legitimate.

• Understand and monitor your investments, ask frequent questions, and map out your financial goals before you meet with a financial planner.

• Don't judge the credibility of a company or sales person by how 'professional' they or their promotional material or website seems.

• Don't fall for high-pressure sales tactics.

• Don't let embarrassment or fear keep you from reporting fraud or abuse to the appropriate authorities.

• Don't ever be afraid to ask questions. In fact, the more questions you ask the better.

Source: Consumer Direct United Kingdom

Avoid spam scams

These tips can help you avoid spam scams:

• Protect your personal information. Share credit card or other personal information only when you're buying from a company you know and trust.

• Know who you're dealing with. Don't do business with any company that won't provide its name, street address, and telephone number.

• Take your time. Resist any urge to 'act now' despite the offer and the terms. Once you turn over your money, you may never get it back.

• Read the small print. Get all promises in writing and review them carefully before you make a payment or sign a contract.

• Never pay for a 'free' gift. Disregard any offer that asks you to pay for a gift or prize. If it's free or a gift, you shouldn't have to pay for it - free means free.

In all situations, the old maxim applies: If it sounds too good to be true, it probably is.

Source: Consumer Direct United Kingdom

How to recognise a scam - is it too good to be true?

THE CON

How scam artists succeed - they will:

• catch you unawares, contacting you, without you asking them to, by phone, email, post or sometimes in person

• sound pleasant, well spoken and kind (on the phone or at your door) and want you to think they're your friend

• have slick, professional leaflets and letters

• be persistent and persuasive

• rush you into making a decision

• ask you to send money before you receive their tempting offer or win.

New scams from the UK and overseas appear every day - so it's important to know how to spot them.

THE PITCH

They offer you something for nothing - such as:

• you've won a major prize in a draw or a lottery (even though you haven't entered one)

• an exclusive entry to a scheme that's a surefire way to make money

• a way to earn easy money by helping them get untold millions out of their country

• the chance to join an investment scheme that will make you huge amounts of money.

There are hundreds of examples but we can all protect ourselves by being sceptical. Is it likely that someone you don't know, who has contacted you out of the blue, will give you something for nothing?

THE STING

They'll ask you to:

• send money up front - an administration fee or tax, the list is endless but it's always a ruse to get you to give them money

• give them your bank, credit card or other personal details

• ring an expensive premium rate number (all UK premium rate numbers start with 090)

• buy something to get your prize.

They will lie to you and give you what seem to be good reasons why you should do what they say. They will answer all your objections.

Don't send any money or give any personal details to anyone until you've checked that they are genuine, and talked to a professional or family and friends.

If they ask you to do any of these things they're trying to cover their tracks and get your money and it's likely to be a scam.

Other things to look out for:

• they ask you to send money straight away

• they give you a PO box number as their address

• they ask you not to tell anyone about the deal.

Use the links on the left to find out about some of the most common scams, and how to report any scams you come across.

Download the Brochure

Source: Consumer Direct United Kingdom