How to spot a scam

Almost one in ten adults have been the victim of a scam. Are you about to fall victim to life-destroying form of fraud?

It's cold when you wake up, but you can't afford to turn up the heating. Your arthritis is playing up again and, surprise surprise, you can't find your pills. It's all a bit depressing, so you make yourself a cup of tea, and sit down to read the post. "Congratulations!" the letter exclaims, claiming to be from the grand master of the Spanish mega lottery draw. "I am delighted to inform you that you have won a guaranteed prize of £100,000. Send us a cheque straight away to claim. And do not delay! We must receive your cheque within 7 days you will lose your chance to claim..."

According to the Office of Fair Trading (OFT), almost 10% of adults have fallen victim to a scam. The elderly are among the most vulnerable, falling into the trap set by such schemes in their thousands.

But if you're reading all this and feeling slightly smug, because you're confident you would never be caught out by a scam, then think again. Sadly, just about anyone can fall victim to one of these scams. And the more confident you are, the easier it will be to take you by surprise. If you do not know how to recognise the signs and spot the tricks scammers use to trap you, you are leaving yourself wide open.

You could find your name and address on the so-called "suckers' list" which scammers swap with each other to target possible victims, so that you are constantly hounded by offers. Or even worse, you could fall into the trap, desperately trying to find out what happened to your life savings. To ensure this doesn't happen to you or your loved ones, here are our top tips on how to spot a scam:

They offer 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? They want something from you.

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. 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 my tips (or you can use the ‘Email This Page' button at the top of this page to forward this article to them). Maybe, if we all do our bit, we can stop the scammers from swindling any more victims...

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