What to watch out for in National Scam Awareness Month

With more scams around than ever before, we are now being advised to be more wary and think twice before parting with our cash or personal details over the internet, the phone and in face-to-face situations. No doubt you will already be aware of a number of tricks going around such as mailings offering bogus lottery or prize-draw wins, pyramid selling schemes and fake emails purporting to be from your bank asking you to compromise your account details.

Nobody likes to think they are gullible but when it comes to scams the crooks are getting so clever that even the most vigilant of us can get ripped off. Technologies such as the telephone, internet and text messaging have given criminals a wider choice of channels to choose from. The internet in particular has made business easier for crooks because it's anonymous, it's global and it's cheap to email scams to millions of people at the one time.

The Office of Fair Trading (OFT) reckons that more than half of the population aged over 15 has been targeted by a mass-marketed scam and around five million of us have responded. The OFT believes that we lost at least £1 billion between 2004 and 2005 to scammers. Unlike other types of fraud, there is no organisation to fall back on and no compensation available - you have to take the hit yourself.

It doesn't just cost us money either - these scams damage the business environment and the economy. John Fingleton, OFT chief executive, commented, "Scams damage individuals and undermine confidence in legitimate marketing techniques, harming fair-dealing businesses." He also warned that people who lose money to scams are unlikely to ever get it back.

February 2006 - the first National Scam Awareness Month

So serious has the problem become that the OFT and the Department of Trade & Industry in conjunction with a number of other organisations are running a high profile "National Scam Awareness Month" campaign during February. The aim of the campaign is to give us the skills and knowledge to recognise a scam so we don't get turned over. It is part of an international initiative organised by the International Consumer Protection Enforcement Network which operates across 30 countries and it is hoped is to turn scams awareness month into an annual event.

Prior to joining the current international campaign, the OFT had already set up its own scambusters team to increase awareness and work with the law enforcement agencies and (perhaps unfortunately timed) from April 1st this year its new consumer advisory organisation, Consumer Direct, is to open. You'll be able to report suspected scams straight to Consumer Direct and get advice about recognising and avoiding scams online or by telephone on 08454 04 05 06.

Sometimes people are too embarrassed to report that they have been ripped off but the OFT is encouraging victims to come forward to help catch the scammers.

The trouble is we all love to get something for nothing and this is what leaves us open to danger. Before you get excited about an offer such as a large prize or lottery win or a particularly lucrative investment offer think twice. The chances are if it looks too good to be true it probably is. You'll save yourself a lot of hassle by just walking away, hanging up or pressing the delete button. Don't fall for high-pressure sales tactics either - swindlers try to put us under pressure to complete the deal.

Before entering into a deal ask yourself the following questions: did you apply for the offer, does it come from overseas, was a PO box number given as the address, does it ask for money or banking details and is it asking you to ring a premium rate number? Take legal or professional advice before you part with your cash.

Consumer Direct advises that you can cut your chances of being swindled by always making sure you know who you are dealing with.

Top tips to protect yourself

• Whether dealing with someone on the phone, email or in person, obtain the name of the person you are dealing with.
• Take notes of conversations.
• Try to verify independently the claims being made.
• Check out the company at Companies House or through the Financial Services Authority.
• Make sure you understand the terms and conditions of the deal being offering.
• Deal with companies you know and trust.
• Never reveal any of your financial details.
• Ask questions! If you're not satisfied with the answers, walk away.