Don't fall victim to a volcanic ash scam

If you've been affected by disrupted flights caused by the Icelandic volcano, make sure you don't get duped by this latest swindle...

I have to say, the prospect of jetting off somewhere right now is not terribly appealing. Although I wouldn't mind sunning myself on a beach, I really don't fancy having to worry about strikes by British Airways or flight bans caused by the volcanic ash – which is still disrupting flights.

But even if you're one of the many people who has already been affected by cancelled flights, courtesy of that annoying Icelandic volcano, and you're now thanking your lucky stars that you're home safely and the nightmare is over - for you, anyway - you still need to watch out. And that's because it seems you're now a prime target for a new sneaky scam that's doing the rounds.

How the scam works

An email lands in your inbox claiming to be from Frank Adam, the chief consumer protector at the Civil Aviation Authority, who explains that you're receiving the email because you’ve been identified as an air passenger who was stranded in Europe due to the recent volcanic ash flight ban.

The email will then go on to say that every passenger who has been unable to travel due to airport closure is entitled to compensation from the airline they booked their flight with. However, many airlines are refusing to pay out because the ash cloud was an ‘act of God’.

As a result, the Civil Aviation Authority has generously decided to set up a fund totalling £25 million to compensate passengers, and each affected passenger can receive £2,000 – including you!

You will then be asked to contact Frank Adam and provide your name, address, phone number and copy of your passport. After this, you’ll be asked to send an administration fee to release your payment, or you will be sent a cheque and be asked to send the fee by wire transfer once you’ve paid the cheque into your account.

Of course, you will never see any of the compensation money because this is a scam. If you do receive a cheque, it will be fake. The Civil Aviation Association has denied any existence of such a fund and has not sent out any emails. So if you receive one of these emails in your inbox, you should delete it without responding.

• Watch our video on The scams that make you shiver.

Watch out!

Unfortunately it seems that scammers are getting quicker at picking up on any kind of disaster or economic issue and using it to their advantage.

Earlier this year, following the earthquakes in Haiti, websites sprung up everywhere to supposedly help you make a donation to the people of Haiti. But of course, many of these websites were fake. Read Haiti: The best way to donate money to find out how to donate safely.

Meanwhile, rising unemployment figures during the recession have encouraged scammers to set up dodgy recruitment websites. These websites reel in customers by advertising what appears to be a great job, and all you need to do is send in your CV.

You’ll then be contacted and told you look like the perfect candidate, but your CV needs re-writing. Providing you pay a fee, the company will help you do this, as well as give you interview coaching. To find out more, read Watch out for this recruitment scam!

The recession has also encouraged scammers to target people in financial difficulties. For example, if you’ve been struggling with your debt recently, you may have been targeted by a company claiming it can help you. This company may have offered to buy all of your debts which you can then repay with a far smaller monthly repayment than you were originally paying.

However, it’s not legally possible for a company to buy a debt without having the lender's permission. So even if you think your debt has been 'bought', you will still owe money to your original lender. And if you stop making payments towards your original lender, you could damage your credit rating.

If you are in mountains of debt and you can’t see a way out, make sure you seek financial advice. You can find out more in Where to get free debt services.

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How to spot a scam

With more and more swindles cropping up everywhere – particularly thanks to the rise of social networking sites such as Twitter and Facebook – it's becoming far easier to get caught out by one of these scams. So if you want to know how you can avoid being stung, here are 10 key signs to watch out for.

1. The offer has been sent by email, phone or in the post.

2. The offer is unsolicited.

3. You’re being asked for money upfront in return for a big payout.

4. The offer looks too good to be true.

5. You have to call a premium-rate phone number.

6. You have to hand over your bank or credit card details.

7. There’s no proper address on the website – just a PO Box address, or there’s only a mobile phone number or email address.

8. You’re being asked to respond immediately.

9. You're being offered financial services, but the company isn't registered with the Financial Services Authority (check using the FSA Register).

10. There’s no explanation as to why you’ve been singled out for this amazing opportunity.

The Office of Fair Trading (OFT) also has a wealth of information on current scams, together with how to spot and avoid them. This guide tells you more about common scams in the UK, together with these guides on how to recognise a scam, and how to ensure you’re not duped by them.

Finally, if you do get caught out by a scam, you can report it via the Consumer Direct website.

More:  Free online banking tool | This scam will ruin your summer | The five worst ID fraud scams