An exclusive interview with a scambuster

The Scambusters Team at the Office of Fair Trading was set up to tackle all rogues and scams targeting consumers and small businesses.

Mark Dungworth, case manager of the Scambusters Team, deals with scams on a daily basis and is keen to warn licensees of the pitfalls.

He says that while many cons target small businesses some of the most successful are those called 'mass-marketed' schemes. These scamsters can either approach you by letter, phone or email - sending out marketing material asking for cash for a service or a product.

More importantly, the scam artists are becoming very sophisticated and the problem is now global. And they are convincing cons that sucker in many small businesses such as pubs and consumers.

He says one of the latest is the business loan scheme which relies on people who are in desperate need of cash - with pubs being a cash-rich business this means they are prime targets.

Mark says: "Business loans is a recent one where you get what looks like a page that has been torn out of a magazine. They will call it something like Financial Market Quarterly or similar and it will mention a phone number you can ring where you can get hold of all sorts of government grants worth up to £20,000."

What makes a scam like this convincing is the way it is presented to the consumer.

"They are quite good," Mark says. "They have Post-It notes on them which are printed but they are meant to look like they are hand-written. People think they have been sent this in the mail by a friend of their's saying 'this looks like a really good idea, J' and of course everyone has got a friend who's name begins with J. It's all part of the mailing."

He believes it is a convincing scam which does not obviously rip you off like a man walking into your pub and leaving with the takings.

"When you sign up for this and pay your money all they will do is send you a booklet detailing how you can get government grants in general."

Tapping into your fears​

Mark says every scam targeting a licensee will tap into somebody's needs and wants - whether this is an unsolicited till roll delivery or selling a licensee that much-needed holiday. These scams rely on the licensees' fear of losing out on a good deal.

"The biggest scam in our research came out as being bogus holiday clubs in which people are being mis-sold stuff and then turning up at the airport," he adds.

"You're told you have won with a scratchcard and what that means is you get a nine-hour presentation before you get sold the holiday club.

"The problem is really the selling method. There is a product at the end here which is not always the case with scams."

Licensees need to do their research before handing over money to any company, warns the government department. The con artists count on small businesses being tricked into paying money for services or legislation which they are fearful they should be paying for or complying with.

"They will rely on people who, when they get an official-looking letter saying 'you owe us for data protection', don't check and believe these letters are official.

"Businesses directories is something we see a lot, the till rolls scam is another one. These ones send out fake invoices," Mark explains.

Not what it looks like​

And just because a company is registered at Companies House or advertises in a national newspaper does not mean it is legal either.

"Because you have never heard of something being a scam before doesn't mean it isn't because they are always looking to do new things," warns Mark.

"Be wary of anything you get from anyone you don't know. If it is badly spelt and looks like it might have been written by a foreign scammer then assume it has been."

Mark had this advice for licensees: "They come up with new ideas all the time. And certain types of scams go for certain types of people. They are all tailored and these con artists are very good at tailoring them.

"There isn't anyone who is safe from it any more - even if you think you are the type of person who is immune to this type of thing and spots everything."

How the OFT targets scams

The OFT tackles scams in three ways - enforcement, education and strategic interventions - areas where they can stop scams getting to consumers.

But scams are becoming more international and harder to stamp out.

"It's so easy to set up a scam now - it's one of those things - scams are now a global problem," Mark says.

Catching the scamsters can involve targeting a company in another country through international co-operation, which is a more complicated and time consuming.

If you have been scammed, or suspect you have, the best thing to

do is to go and talk to Consumer Direct on 08454 040506, visit www.consumerdirect.gov.uk or go to the Trading Standards Institute at www.tsi.org.uk

THE CON​

To succeed scam artists will:

- catch you unawares, contacting you, without you asking them to, by phone, email, post or sometimes in person

- sound pleasant, well spoken and kind (on the phone or at your door) and want you to think they're your friend

- have slick, professional leaflets and letters

- be persistent and persuasive

- rush you into making a decision

- ask you to send money before you receive their tempting offer or win.