Scams - general

SCAMS 1 - INTRODUCTION

There are many ways in which we can fall foul of scams, many of which are based on the ubiquitous use of home computers, ATMs and mobile phones. We therefore offer this collection of articles in the hope that readers may acquire (a) a better understanding of the pitfalls awaiting the unwary and (b) an idea of the precautionary and preventative measures which can be taken to reduce risk.

As indicated above, most modern scams are technology-based, but there are others which are just as devious and damaging. With your best interests at heart, we will cover these as well.

These articles have been written over a longish period and there is an unavoidable degree of overlap in the way some themes have been covered. The plus-side of this approach is that each article is pretty well self-contained.

To kicks things off, here are three relatively recent scams. The first is based on a common theme, namely an email notification that you have been awarded an attractive prize. The second is an attempt to persuade you to allow a virus onto your computer. The third doesn’t rely on technology but may nevertheless use it.

YOU LUCKY PEOPLE

Apple's super-thin MacBook Air is one of the most desirable laptop computers on the planet - which means it's not too surprising if criminals try and take advantage of its allure to infect unsuspecting computer users.

And that's exactly what hackers are doing today in a malicious email campaign that has been spammed widely out across the internet.

Unsuspecting computer users may find an email with the subject line "Congratulations" in their inbox, telling them that they "have won todays Macbook Air" and that they should open the attached file (called winner.zip) for more information. If you do so, all you win is an evil piece of malware of the type known as a Trojan. You need this like you need a hernia. Just delete the email and get on with your life.

CREDIT BALANCE EXCEEDED

Email users around the world are being finding messages in their inbox claiming to come from mobile phone operator Vodafone.

The emails, which have the subject line "Your credit balance is over its limit" are not really from Vodafone at all and try to trick unsuspecting users into opening a dangerous attached file which poses as the "Vodafone Balance Checker Tool".

There is a danger that unsuspecting mobile phone owners might fall for the trap, perhaps convinced by the use of Vodafone's logo which is embedded in the email, and launch the file attachment, thus infecting their computers.

There’s a very similar email going the rounds, purporting to come from Verizon and with the so-called "Verizon Wireless Balance Checker Tool" attached. Same approach, same trap.

CLAIMS HANDLERS & DEBT MANAGEMENT

An advertisement, or maybe an email, tells you that your debts, including your credit card balance and that loan you took out to buy a car, can be written off. Just like that. All legal and above board. Tempted?

Would you like help to further your claim against many years of excessive bank charges, or that Payment Protection Insurance that you were mis-sold? Yes, please.

These are representative of the deals you might be offered by a claims management company. But if you've ever been tempted, a recent study for the British Bankers' Association should make you think very carefully.

The survey, which was carried out on behalf of the trade body, revealed that some claims management companies are specifically targeting vulnerable people in financial difficulties and making promises they simply can't keep.

According to the study, many companies are luring in customers on the promise that they can wipe out their debts, while having no evidence they can do so. Moreover, demands for upfront payments are not uncommon.

Typically, these companies will say they can buy all of your debts which you can then repay with a far smaller monthly repayment than you've been paying to your original lender.

However, it's not legally possible for a company to buy a debt without having the lender's permission. Even if you think your debt has been 'bought', you will still owe money to your original lender. The company will omit to mention that if you stop paying money to your original lender, this could damage your credit rating for life.

What's more, adverts claiming to be 'no win, no fee' can also be misleading, with some companies offering unrealistic timescales for the claims process. Success rates were also questionable.

Perhaps most worrying of all, the study also revealed there's no requirement for claims handlers to hold any qualifications. So this means that any advice you receive from a claims handler could be completely incorrect, and ultimately very costly indeed.