Smart consumers fall prey to scams

SAVVY consumers may be more vulnerable to falling for scams, according to a new study by the Office of Fair Trading (OFT).

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You might think that when it comes to your finances a little knowledge can only be a good thing. But the report claims that having a good background knowledge about the subject of a scam offer — such as having experience of investments — may increase someone’s risk of falling victim to it because of over-confidence.

This was one of the more surprising findings of the OFT report, which also examined the psychological techniques used by confidence tricksters to swindle the public out of an estimated £3.5 billion a year.

The research is part of an ongoing campaign by the OFT to alert the public to mass-marketed scams such as miracle health cures, pyramid schemes, bogus holiday clubs and fake lotteries. Its main finding was that most victims were simply gullible, and that up to a fifth of the population were “particularly vulnerable to scams”. It also found that those who had fallen victim to a confidence trick in the past were more likely to do so again.

Victims often kept their experiences to themselves, it emerged, which suggests they may have been aware on some level that the offer was suspect.

The research claimed that most people were vulnerable to a “persuasive approach” because scams were designed to abuse people’s trust of authority; they were often marketed as a legitimate enterprise through a reputable business or official organisation.

Gareth Thomas, the consumer affairs minister, said: “These findings show it is not just the vulnerable but the financially savvy, too, who are at real risk of falling victim to scammers. Trading Standards Scambuster teams are working hard to highlight the dangers of scams. They have already saved consumers more than £3million and seized £2 million in criminal assets.”

Victims often kept their experiences to themselves, it emerged, which suggests they may have been aware on some level that the offer was suspect.

The growing number of scams include fake clairvoyants, crooked racing tipsters, miracle health cures, bogus investments and “advance-fee frauds”, often originating from Nigeria. OFT spokesman Mike Haley said: “The findings provide a valuable insight into the sophisticated, heartless and calculating psychological techniques used by scammers to exploit consumers.”

According to OFT figures, 3 million consumers are conned every year, with fraudsters using email, text messages, the telephone and the internet to fleece unsuspecting individuals.

Consumer Direct, an advisory service which is part of OFT, is urging people to learn how to recognise the signs of friends or relatives falling victim to scams. It says someone who is regularly targeted will receive a large volume of junk mail, have a house full of cheap-looking goods and receive regular phone calls from strangers.

If you think someone is beingscammed, it says, ask questions and offer advice, but try not to criticise, as this may do more harm than good.

For more information go to www.consumerdirect.gov.uk or call 08454 040506.

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