Although they may vary in what they offer and the medium they use, scams tend to have certain common features which should alert the recipient as to their true nature.
Scams can appeal to both the best and worst human characteristics; by playing on people’s altruism with bogus charity stories, or, more commonly, by offering the dream of luxury holidays, cars, substantial second incomes etcetera.

Common features of scams:

• The couch potato's dream.
  
  "Make easy income by working from home in your spare time..."
  
  Be very wary of schemes that promise high returns for little or no effort. Always be sceptical of extravagant claims about performance or earnings potential.
  
  
• The hustle.
  
  "Act now!", "Limited offer!", "This introductory offer is valid for seven days only!"
  
  Pressure to act quickly or lose out is another common tactic. It is designed to get the recipient to act without having time to think. It is the same psychological tactic used by companies which are selling surplus/unwanted stock as a special offer.
  
  
• You've won a prize (something for nothing).
  
  This is a baiting tactic designed to lead the recipient into the scam. Prizes shown can be cars, holidays, or a large amount of cash. After spending several pounds on premium rate calls, the caller will very often discover the prize is something like a cheap pen.
  
  
• Exaggeration.
  
  Beware of words and phrases such as: "Free"; "miracle"; "guaranteed results"; "medical breakthrough"; "no skills required"; "secret"; etc.
  
  Written testimonials should be regarded with suspicion; they are normally an inherent part of the scam.
  
  
• Extraordinary products.
  
  "Miracle diet pills"; "incredibly high return investments"; "credit history repair"; "earn £1,000s in your spare time...".
  
  Scammers appeal to desires. They deliberately target people's weaknesses, hopes, desires, and fears in order to gain from them. The extraordinary products/services do not deliver on their promises.
  
  
• Money up front (advance fee scams).
  
  The purpose of any scam is to get people to part with something of value; usually money, although credit card or bank details can also be a target.
  
  Any scheme, opportunity, prize, offer etc that requires money up front before receipt of any (potential) benefit should be treated with suspicion.
  
  No legitimate lottery or other prize, bank loan etc requires the recipient to pay charges in advance. If this is encountered then the offer is very likely to be fraudulent.
  
  
• No physical address.
  
  Scammers do not want to be traced so they will often give out a PO box as their contact address. The internet is the new way that scammers hide themselves. In both cases it should be obvious that these people will not be able to be contacted, or possibly even traced by police, in the event of any problem.
  
  
• An appeal to secrecy.
  
  Scammers will often push their bogus deals onto people as a great, golden opportunity. It's so good in fact that it is imperative that it is kept a secret. Of course the reason that it has to be kept secret is because other people might recognise it as a scam.

Homeworking scams

The job offers tend to focus not on the more mundane aspects of employment such as paying mortgages and bills, but on having luxuries and a dream job that is flexible, demands no qualifications and has substantial financial rewards.

Homeworking scams include addressing and filling envelopes and assembling craft kits. Often the job seeker is asked for an initial financial outlay to pay for materials. Subsequent recompense is at best woefully inadequate or, much more likely, non-existent, with the accompanying comment that the work carried out was substandard.

Government estimates indicate that there are around 300 such scams operating within the UK at any one time, requiring the job seeker to make an outlay of between £10-£60.

Premium Rate Telephone Scams

These may vary in what they offer, whether it is to enquire about employment opportunities or claim a free prize from a scratch card flier. The calls often last for more than 5 minutes and may even require the consumer to phone a second number. UK premium rate numbers begin with 090 and can cost up to £1.50 a minute. Providing the rates are mentioned, these scams are not illegal.

Telemarketing scams

This is a high stakes area using increasingly sophisticated techniques; current ones being credit card loss protection and international lottery scams. Both ask for credit card details to make an advanced payment.

Miracle cures and Fortune Talismans

Both may use glowing testimonials, and often allude to exclusivity and “suppressed” knowledge. The latter can often be aggressive in tone and warn of misfortune should the reader not take up the offer.

Other Major Scams

The Department of Trade and Industry’s “Don’t be a mug” campaign has a comprehensive overview of the main scams known to be operating today. These include the African email or letter fraud, investment scams, pyramid selling scams, timeshare, unsolicited gifts and vanity publishing.
For information on Internet scams, see here.

Protection against scams

• Send no money up front
• Do not give out credit card or bank details
• Be aware of premium call rates before making calls
• Do not be taken in by where adverts are placed
• Take time to consider what is being offered
• Check out company details and seek reputable and professional advice

Although current UK legislation offers consumer protection in areas such as sales of goods, mail order shopping, financial services and receiving unsolicited goods, most people will never be able to recoup their money from scams. The DTI’s advice is simple:
The best defence is a high level of awareness and scepticism on the part of the public.

Contacts:

National Homeworking Group 0800174095
Offer advice on legitimate homeworking companies.

Advertising Standards Agency
http://www.asa.org.uk/
Useful for raising awareness of widely- distributed misleading advertisements.

Companies House
http://www.companieshouse.gov.uk/
For details of individual companies. Companies House has the power to strike off companies who are not operating within the law.

Financial Services Authority
http://www.fsa.gov.uk/consumer/

Office Of Fair Trading
http://www.oft.gov.uk/
Has an international arm with an interest in internationally based scam mailing

Telephone Preference Service
http://www.tpsonline.org.uk/tps/
To request an end to unsolicited calls

Trading Standards
http://www.tradingstandards.gov.uk/
For reporting scams operating within the local area

Consumer direct
http://www.consumerdirect.gov.uk
A DTI site which deals with scams and general rogue trading.

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