Work At Home Scams On The Increase
Scammers targeting people who want to work from home are using the downturn in the economy as a chance to cash in, the Office of Fair Trading says.
Firms tricking people into thinking they can earn easy money, cost UK victims £70m a year, the OFT estimates.
And it believes that figure is set to increase during the current recession.
The OFT is highlighting the trend as part of Scam Awareness month which looks to stop people being conned and parting with their cash.
Last year 209 people reported misleading home working schemes to the government’s consumer advice body Consumer Direct but the OFT says this figure is the tip of the iceberg.
“Only 2% of people who get taken in by these scams actually report them,” said Mike Haley, Director of Consumer Protection at the OFT.
“Our research shows that over 300,000 people each year are falling victim and it’s on the increase because of the economic climate.
“People are looking for work, for easy opportunities to earn money and these scammers are exploiting that false hope.”
Elizabeth Cork from Norfolk was among those to be taken in by such a scam, after spotting an advert in a national newspaper to earn up to £300 a day at home filling envelopes. It asked for a payment of £35 for a starter pack.
“It wasn’t too much money so I thought it would be a fairly safe thing to do,” Mrs Cork told the BBC.
Initially nothing arrived but after writing to them again, she received an information pack, but no envelopes.
Instead she got instructions to place leaflets – including her contact details – around her village. She was told that when people got in touch, she would then receive £1.70 in return for passing their details to the company.
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