The nationwide campaign will run throughout February and inform the public about the knowledge and skills they need to recognise, report and stamp out scams. The most common scams to look out for include:

• Bogus holiday clubs - these cost UK consumers £1.17billion a year with 400,000 victims each losing an average of £3,030. UK holidaymakers are invited to a presentation to collect a prize and pressurised into joining an exclusive holiday club which does not deliver what it promises.
• Prize draw and sweepstake scams - most are notifications of a cash prize in return for a fee. Respondents pay out the money but get no return, costing 380,000 UK consumers £60million every year. Consumers can also be misled by letter, text or automated telephone message into thinking they have won a major prize, but must call a premium rate 090 number to claim, costing up to £1.50 a minute. Nearly all end up with a low value 'giveaway' item. More than a million people in the UK are scammed this way and lose £80m a year - an average of £80 each.
• Miracle health and slimming cure scams - consumers receive a mailing or email promising a health 'miracle'. These pills, lotions, creams and other products supposedly cure everything from baldness, cancer, impotency or promise easy weight loss. Around £20million a year is spent on these scam products which might even cause harm.
• Clairvoyant mailings - although they are sent in their thousands, the letters from a so-called psychic or clairvoyant are personalised, offering predictions for payment. Seventy per cent of victims are women and the scam costs 170,000 adults in the UK £40million a year.
• Fake foreign lotteries - consumers receive a letter, phone call, or email telling them they have won a major payout in an overseas lottery, and are asked to send money to cover administration or taxes. The winnings are never received, and cost 140,000 consumers £260 million every year.

Key message
Mike Haley, Head of Scambusters at the OFT, said: "Scammers are finding more ruthless and sophisticated ways to exploit modern tools such as the internet, email or text messaging. These scams deeply affect individuals and families, leading to debt, depression, and even suicide. Though anybody can be conned by the scammers, it is always the vulnerable, the oldest or youngest, who end up suffering the most."

The key message of the campaign is that as scams have become more sophisticated, new methods are being used to get smart with scammers, including using new European laws, including the Consumer Protection Cooperation Regulations, closer co-operation with authorities, as well as 'name and shaming' companies and individuals.

Recent research commissioned by the OFT involving 11,200 interviews has found that 1,388,000 UK consumers fall victim to prize draw and sweepstake scams, 400,000 to bogus holiday clubs, 330,000 to work at home scams, 200,000 to miracle health scams, 170,000 to clairvoyant and psychic scams, 110,000 to loan scams.

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Susie Hughes
The Editor © Hardhatter 2007