After York police worker Andrea Davis blew the whistle on nuisance mail rip-offs, JO HAYWOOD looks at this year's top scams - and how to beat them.
IF AN offer seems too good to be true, then it probably is.
That is the simple message from York Trading Standards, which has launched an investigation into unsolicited mail after Andrea Davis, a civilian worker with York Police, received 20 nuisance letters asking for cash in a single week.
It is also a message backed by consumer minister Gerry Sutcliffe, who has sent out a stern warning to scammers that if they continue to operate, the DTI's companies investigations branch will come knocking.
As well as nuisance mail, the scams that are currently in the minister's sights involve companies or individuals:
selling goods such as magazines, badges and raffle tickets for unregistered "charities" door-to-door
running "get rich quick" property schemes
advertising buy-to-let properties in poor condition and making claims about unrealistic rental returns
advertising individual plots of agricultural land in areas where there is virtually no development potential
selling advertising space in a range of publications, claiming that part of the money raised will go to good causes
offering the chance to make a profit from buying up debts
charging for unsolicited office consumables
targeting the compensation packages of retired or redundant staff.
"In the last financial year we successfully wound up 371 companies, typically for fraudulent trading," said Mr Sutcliffe.
"But it is a sad fact that the scams and rip-off money-making schemes continue to resurface in a number of different guises, usually taking advantage of people's good nature or desire to make a bit of money.
"Anyone out to rip off people through dodgy business practices may think they'll get away with it, but they won't."
DTI investigators can move in very quickly to have a company wound up, and directors can find themselves in court having to answer for their actions.
Problems can often be resolved without going to court, and poor business practices can be tackled without the need for legal action.
But anyone who is deliberately defrauding the public faces having their business shut down, their assets seized and their activities publicised in the local and national press.
The DTI has the power to apply to the courts to disqualify directors for up to 15 years. Dodgy directors may also find themselves in court facing criminal charges and a custodial sentence.
These are after-the-fact remedies, but how can members of the public and companies guard against falling for scams in the first place?
The following guidelines should help:
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 and ask frequent questions, mapping out your financial goals before you meet a financial planner
don't judge the credibility of a company or that of a salesperson by how professional they or their promotional material or web site seem
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.
Updated: 08:47 Thursday, September 02, 2004
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