Pyramid Schemes
The pyramid schemes are hundreds of people at the bottom paying cash to join and just a few at the top. As its only a few people at the top its these people who get the financial benefits.
The idea is that the individuals are approached and are promised huge returns of money if they join. They then have to give a few hundred pounds or even thousands to someone already in the scheme. This money is usually in cash.
The only way the person can get a return is to find more people to join so that then the cash can continue.
The government estimated that up to a £100 million a year could be lost by people who respond to bogus promotions.
Prize draws/sweepstakes and foreign lotteries
Many scams take the form of prize draws, lotteries or government payouts.
If it sounds too good to be true it probably is.
There is a possibility that you may have been targeted and by responding to your letter or phone call you may then be contacted requesting a sum to be sent off in order to claim your refund or they may request your bank details stating that they will pay the money direct into your bank account.
If you send off your bank details chances are that they could access your account and withdraw money, but if you send off any personal details or information you may also be a victim of identity fraud.
For further information or advice please contact us.
Contact us
Trading Standards
Challenge Building
Hatherton Road
Walsall
WS1 1YG
Telephone: 08454040506
Fax: 01922 630697
Email trading_standards@walsall.gov.uk
This page was last updated on 18 March 2010