NewsCase StudiesEvents

Warning: Easy Money Comes At A Price

Also in the news...

Start Your Own Freight Brokerage Business

The experts at Entrepreneur Press lay out a step-by-step approach to starting a freight brokerage business

Start Your Own Import/Export Business

Importing and exporting are trillion-dollar industries -- but that doesn't mean they're just for big business.

Lord Livingston meets top exporters from the south east region

Winners of the 2014 Queens Award for Enterprise from the south east celebrated their success at a special event in London hosted by Lord Livingston.

Offshore Tax Secrets 2014

This new guide is essential reading for anyone interested in using offshore tax planning techniques to legally reduce UK taxes.

Offshore Companies

How To Register Tax-Free Companies in High-Tax Countries

Warning: Easy Money Comes At A Price

Back to News

‘Get-rich-quick' schemes are costing UK victims as much as £70m a year, a figure that is set to rise as the recession wears on.

TOM TAINTON investigates the rise in business scams.

The Office of Fair Trading has announced that conmen advertising ‘get-rich-quick' schemes are costing UK victims as much as £70m a year, a figure that is set to rise as the recession wears on. The dastardly fraudsters are targeting people who are desperate to get their hands on some easy cash, perhaps feeling the effects of the economic downturn more than most. The government has been trying to encourage businesses to use the credit crunch to their advantage, so in a way, they've succeeded. It's smart thinking by those cooking up the scams, but less of a wise move for the naïve souls parting with their hard-earned pounds.

The news comes at part of Scam Awareness month which seeks to stop people being conned by criminals. Traditionally, the methods of advertising scams were amateurish, seedy procedures. Think grimy cards in phone boxes, notices on lampposts and junk mail in your inbox. Today, however, they also appear alongside genuine job opportunities in newspapers and in the online environment. Common schemes include envelope stuffing to put-together kits which are then rejected for ‘poor quality' and subsequently payment is never received. There are many more examples, all just as painstakingly tedious.

A bigger concern is that hardly any of the victims ever bother to report the scam. Possibly out of sheer laziness, more likely due to embarrassment. In fact of the 300,000 people affected per year, only 2% tell the Office of Fair Trading. Consumer Direct suggests that anyone looking for home working opportunities should contact their local job centre. Slightly patronizing, but the good intention is there. A Consumer Direct spokesman pointed out that a "genuine job is highly unlikely to ask you to pay any money or an upfront registration fee".

So the golden rule people - if it sounds too good, then it probably is.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.