Please find an updated list of top ten scams from the UK Guardian Feb 2 2009 . Land Banking is listed at number 4 and continues to be a problem. Is there any chance some action will be taken on this in Singapore
-------
Ten of the worst ... scams to avoid
More than 3 million consumers fall victim to scams each year, but you don't have to be one of them. Tony Levene picks the main ones to avoid
Tony Levene
Monday February 2 2009
guardian.co.uk
Scams cost UK consumers at least GBP3.5bn last year, according to the Office of Fair Trading (OFT). And the older you are, the more likely you are to lose money: older folk tend to have cash as well as being more trusting.
The OFT estimates 3 million UK consumers a year fall victim to scams sent by post, email, text or over the phone. But the real figure could be much higher. Many victims fail to report losses, often due to embarrassment.
Today is the first day of the OFT's scams awareness month designed to raise awareness of mass marketed scams. The consumer watchdog is setting up a nationwide "Scamnesty" scheme, which calls on consumers to drop scam mailings into scamnesty bins or boxes at local libraries and public areas across the country. The OFT says the information collected will help identify and develop strategies to combat the worst criminals.
So what are the scams most likely to catch people out? Here is our top 10.
1. Homeworking scams
Credit-crunched people turning to part-time work to help balance budgets need to watch out. Homeworking scamsters advertise "easy earnings" in return for cash. But all they send out is a leaflet telling people to advertise "easy earnings" schemes. Others promise big rewards for packing goods ? they take the money upfront and victims never see any earnings, even if they are conned into packing goods.
Credit-crunched people turning to part-time work to help balance budgets need to watch out. Homeworking scamsters advertise "easy earnings" in return for cash. But all they send out is a leaflet telling people to advertise "easy earnings" schemes. Others promise big rewards for packing goods ? they take the money upfront and victims never see any earnings, even if they are conned into packing goods.
2. Racing tipsters
Many tipsters try to find winners, but some offer "guaranteed" tips which turn into a regular income in return for a fee. Except they don't. Others ask you to put money on horses for them in return for a 50% share of winnings, while promising to recompense losing bets. The only safe bet is that you won't see your money again.
Many tipsters try to find winners, but some offer "guaranteed" tips which turn into a regular income in return for a fee. Except they don't. Others ask you to put money on horses for them in return for a 50% share of winnings, while promising to recompense losing bets. The only safe bet is that you won't see your money again.
3. Bogus foreign lotteries
You receive a letter from Spain saying you have won a million euros in a lottery you have never heard of, let alone entered. The fraudsters demand you send some money to "unlock the cash". And then some more. There is no prize ? victims can lose tens of thousands of pounds.
You receive a letter from Spain saying you have won a million euros in a lottery you have never heard of, let alone entered. The fraudsters demand you send some money to "unlock the cash". And then some more. There is no prize ? victims can lose tens of thousands of pounds.
4. Landbanking
Fraudsters buy a field, divide it into tiny slices and sell each one for big money ? usually ?10,000 ? by convincing victims the land will soon get planning permission. The land never gets planning consent and the landbankers disappear with your money, leaving you with valueless land.
Fraudsters buy a field, divide it into tiny slices and sell each one for big money ? usually ?10,000 ? by convincing victims the land will soon get planning permission. The land never gets planning consent and the landbankers disappear with your money, leaving you with valueless land.
5. Pyramid schemes
A classic pyramid scheme involves getting lots of people to invest small amounts of money and offering them a reward for every new recruit they sign up. For example, you might be invited to invest ?3,000 of your own money and asked to recruit seven other investors who will pay you ?3,000 each. You now have ?21,000. The incentive for your friends is that they are "allowed" to go out and each recruit seven other investors so they get ?21,000 as well. It is illegal and people soon run out of friends to con.
A classic pyramid scheme involves getting lots of people to invest small amounts of money and offering them a reward for every new recruit they sign up. For example, you might be invited to invest ?3,000 of your own money and asked to recruit seven other investors who will pay you ?3,000 each. You now have ?21,000. The incentive for your friends is that they are "allowed" to go out and each recruit seven other investors so they get ?21,000 as well. It is illegal and people soon run out of friends to con.
6. Business opportunity scams
Here you are offered a "franchise" or other business idea in return for thousands of pounds in fees. The attraction is along the lines of "thousands of pounds a month without leaving the comfort of your armchair." The idea is usually rubbish and the originator runs off with your money.
Here you are offered a "franchise" or other business idea in return for thousands of pounds in fees. The attraction is along the lines of "thousands of pounds a month without leaving the comfort of your armchair." The idea is usually rubbish and the originator runs off with your money.
7. Phoney jobs
Another credit crunch special. Websites promise jobs with high pay for an hour's work a day for those with no experience or skills. The first snag is you have to send substantial cash sums for the application form upfront. The second snag is that the job does not exist.
Another credit crunch special. Websites promise jobs with high pay for an hour's work a day for those with no experience or skills. The first snag is you have to send substantial cash sums for the application form upfront. The second snag is that the job does not exist.
8. Bouncing cheques
Advertise your car or motorbike in a legitimate website or publication and you could get someone offering you more than you ask for. They will back this up by sending you a "certified cheque" or "banker's draft" for the cash. By the time you discover the cheque is a forgery your vehicle is halfway across Europe. Many insurers will not pay out for "theft by deception".
Advertise your car or motorbike in a legitimate website or publication and you could get someone offering you more than you ask for. They will back this up by sending you a "certified cheque" or "banker's draft" for the cash. By the time you discover the cheque is a forgery your vehicle is halfway across Europe. Many insurers will not pay out for "theft by deception".
9. Boiler room investment frauds
Very persuasive salespeople call you up ? usually from abroad ? to offer you sure-fire share investments. The shares, if they exist at all, are overpriced by up to 100 times. And it is impossible to sell them. It is easy to lose ?20,000 or more.
Very persuasive salespeople call you up ? usually from abroad ? to offer you sure-fire share investments. The shares, if they exist at all, are overpriced by up to 100 times. And it is impossible to sell them. It is easy to lose ?20,000 or more.
10. Phishing
This is nothing to do with angling! Fraudsters send emails purporting to come from your bank's security department, asking you for your log-in, password and other personal details. Once they have these they loot your account. No legitimate bank ever asks for these details. And banks are getting tougher with victims, telling some they will not be recompensed for their losses because, by now, everyone should know about this racket.
Tony Levene is the author of How to avoid scams (Age Concern ?9.99)
Copyright Guardian Newspapers Limited 2009
This is nothing to do with angling! Fraudsters send emails purporting to come from your bank's security department, asking you for your log-in, password and other personal details. Once they have these they loot your account. No legitimate bank ever asks for these details. And banks are getting tougher with victims, telling some they will not be recompensed for their losses because, by now, everyone should know about this racket.
Tony Levene is the author of How to avoid scams (Age Concern ?9.99)
Copyright Guardian Newspapers Limited 2009
There are still MLM companies running in Spore selling so-called health products. Are these entities legal?
ReplyDeleteAnother scam products to include are all the cashback anticipated endowments in the market.. They are worst because consumers are slowly but surely sucked of their money. Consumers think they receive money or yearly interest which actually is half of their own money. Consumers never ask what happened to the rest of their money. The insurance companies make use of their cheap money to generate more money, keep the profit but return a paltry interest to the consumers which is actually a loss if you factor in the inflation rate over a very long period.One product even claims that it is a retirement saving plan.This is grossly misleading and misrepresenting. These products are worst than the other scam because they steal without the consumers knowing it.
ReplyDeleteNo wonder consumers or Singaporeans cannot retire because of such products in the market.Also with collaboration of the greedy insurance agents who have lost their conscience like the animals both the companies and them colluded to suck off the consumers.
UK Land registry publishes warning on land bank "investment" schemes 15 Jan 2009
ReplyDeleteLand Registry has published a guide warning against so-called land banking investment schemes which are often advertised as offering big returns on investments in land.
The government department says many investors have handed over thousands of pounds for land that has little or no chance of being developed.
Plots of land are offered for sale, often online, and sometimes with the claim that there will be huge returns when planning permission is obtained for housing or other development. But the land is usually in areas protected from development by planning law.
Those operating land banking schemes often claim that they have well known banks, other lending institutions and established developers as their partners in the schemes when this is not the case.
Land Registry Head of Corporate Legal Services Mike Westcott Rudd said:
"Members of the public have been misled about the prospects of obtaining planning permission or that planning permission has already been granted."
"Sometimes they are told well known banks, lenders and established developers are partners in the schemes when this is not the case."
"In some extreme cases forged Land Registry letters have been produced to suggest that there is official Land Registry planning approval. However, Land Registry plays no part in the planning process."
Public Guide 21 Land banking schemes – buying land in England and Wales claimed or thought to have development potential can be downloaded here
This link takes you straight to the Public Guide on Land Banking schemes.
ReplyDeleteHere are some quotes from the guide.
Many investors have handed over thousands of pounds for land that has little or no chance of ever being developed.
Plots of land are offered for sale, sometimes with the claim that there will be huge returns if planning permission is obtained for housing or other development.
The land is often located in ‘green belt’ or undeveloped areas often protected from development by planning law. Or it could be agricultural land where no development is ever likely to be permitted.
Because the land is unlikely to be developed, it is bought at a low price and divided into smaller plots. The plots are then offered for sale, often online, to members of the public on the basis that when future planning permission is secured for the site for housing the plots will be more valuable.
Members of the public may be misled about the prospects of obtaining planning permission or redevelopment and this in turn may lead them into thinking that they will have the opportunity to sell the plots at even greater profit to developers with planning permission.
Please note that Land Registry plays no part in the planning process.
The Land Registry estate plan approval system is designed only to approve layout plans for development sites. The formal approved plan can then be used to form the basis of transfer or lease plans providing continuity in the individual plot sale but this is not a planning permission for the site or plots.
Land Banking is usually unregulated. This means that the money invested by members of the public is not protected if things go wrong. Many experts believe that such investments will never produce big returns.
http://www1.landregistry.gov.uk/assets/library/documents/public_guide_021.pdf