Internet security
Essentially all scams are the same. The crooks tell you a lie. You give them money. They disappear. And only then do you realise that you have been robbed.
The Office of Fair Trading (OFT) says that £3.5 billion a year is stolen from people through scams and that more than three million of us – about one in 20 – are victims. The scams which work best target people familiar with the field the fraud is set in. For example, people who enter genuine prize draws are more likely to fall for a lottery scam. And those who have shares are most likely to fall for investment scams.
The Financial Services Authority (FSA) found that victims have usually researched the offer, but the fraudsters are well-practised in deceit. If you ask, "Why are you not regulated by the FSA?" they reply that they are regulated overseas and invite you to check a website – which the thieves have set up. And once people have taken that first step, the next one is easier, until they are on the slippery slope to financial ruin.
The FSA says some 3,000 people a year contact it after losing an average of £20,000 each to fraudulent share scams. The only answer is to say "No" to every unsolicited offer of easy money.
Written by Paul Lewis, this article first appeared in the July 2009 edition of Saga Magazine. Paul's opinions are his own and for general information only. Always seek independent financial advice.