August 12, 2011

Watch out for a new tax scam

Suffolk Trading Standards are warning consumers about a serious tax rebate scam from a company falsely claiming to be from the well known brand name - Money Saving Expert.

Money Saving Expert is best known through TV and Radio presenter Martin Lewis and the company’s popular consumer website moneysavingexpert.com. The fraudulent company are providing the Money Saving Expert company address in London and are also claiming to represent the ‘Ministry of Finance’.

Initially, a Suffolk consumer contacted Suffolk Trading Standards on 5 August 2011 after a company was cold calling him over the telephone saying he was due a tax rebate of nearly £6000.

Money Saving Expert has confirmed that they do not cold call consumers and do not provide cheques to consumers for tax rebates or any other purposes. It appears the company's name and address was being used illegally in an attempt to give some creditability to the scam.

The second claim that the company were representing the ‘Ministry of Finance’ was also entirely false as there is no such department in the UK.

This scam works by asking the consumer to buy a Ukash voucher, which are available for cash at a variety of retail outlets, for the value of £100.

The Ukash voucher is a less familiar form of payment that enables people to exchange cash for a voucher that can be used to pay for goods, mainly on the internet. However, once a consumer has provided the number located on the voucher, any one else can use its value in exchange for payment of goods. The consumer's voucher is then no longer of any value.

The company promised to send an agent to collect the voucher at the consumer’s home address in exchange for a cheque. At first, the company tried to complete the exchange on the same day as the initial call.

Fortunately, the consumer contacted Suffolk Trading Standards who waited for the business to return a telephone call to make arrangements for the cheque rebate. During the conversation the company repeated the false claims that they were from a company called Money Saving Expert and represented the ‘Ministry of Finance’.

Suffolk Trading Standards are warning people using Ukash vouchers not to provide the code numbers on the voucher to anyone calling them, particularly if they are claiming to be able to reclaim tax rebates, bank charges or similar.

County Councillor Colin Spence, Portfolio Holder for Public Protection said; “Consumers should be very wary of contact via distance communication from companies asking for an upfront fee or the purchase of money vouchers in exchange for tax rebates.

“In this case a well known company name has been used to try and provide the scam with some creditability and lure consumers into parting with hard earned money. The best advice we can give is if the offer appears too good to be true, it probably is. Consumers should contact Consumer Direct to report any suspicious contact of this type.”

Wendy Alcock, Campaigns Coordinator at Money Saving Expert said; “As campaigners on consumer rights we sadly hear tales like this every day. Scammers are good at making their scams look authentic and millions are caught out each year but it's great to see in this case the consumer knew things didn’t add up and contacted their local trading standards. We urge anyone else who is unsure of a company's claims to do the same.”

Anyone who has been contacted by a company they suspect may be trying to scam them should call Consumer Direct on 0845 404 0506 or visit www.consumerdirect.gov.uk

Alternatively, the UK’s national fraud reporting centre Action Fraud can be contacted on 0300 123 2040 or on www.actionfraud.org.uk

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