Unfortunately today's sophisticated fraudsters are finding even more devious ways of extracting cash from unsuspecting members of the public. This article covers one of the latest scams to have emerged recently.
The Scam
There can only be one thing worse than being scammed - attempting to rectify the problem, only to be scammed again. A growing concern is the latest series of tricks aimed at unlucky consumers who have been targeted by fraudulent Timeshare companies or Holiday Pack decks throughout Europe and have lost money to them.
A bogus legal firm purporting to be working jointly with government agencies contacts them, claiming to be able to recover their lost money. However, they say that in order to recuperate these funds, they need an upfront payment from the consumer - which then vanishes.
Who is being targeted?
This fraudulent method is aimed specifically at people who have been the unfortunate victims of bogus holiday packs, failed holiday clubs, so-called cash-back schemes and reclaim certificates.
One such example involved a consumer who had been contacted by bogus solicitors in Spain. The company claimed to be a highly regarded organisation that was registered with the Spanish Law Society and had a professional website. However, it emerged that their website had been cloned from a reputable legal firm and the tricksters had simply changed the pictures and contact details. The unsuspecting consumer's money was not going towards helping them reclaim their previously lost funds at all, but instead going into the pockets of the fraudsters.
Another scenario leaving consumers open to deception is where a company asks someone to send them an upfront payment by bank transfer, supposedly to cover the cost of legal fees or some other service. Then they contact the person again, saying that the transfer did not go through and could they resend it. One consumer experienced this recently and after sending three bank transfers to a bogus company, lost almost £10,000.
Our advice
Like other Timeshare consumer advice bodies, the TCA is working to alert consumers to this deceitful practice and to help stop the con merchants in their tracks. These bogus companies, out to manipulate and defraud consumers, can be extremely persuasive and are often very convincing.
If you have purchased one of the above so called holiday products and have been cheated, be very cautious if you are approached by a company claiming to be able to recover your lost funds, especially if you are contacted by telephone. You should research the company to ensure they are legal before handing over any money. If you are genuinely entitled to any money related to your purchase, an official company will contact you directly, probably by post - but it is unlikely to be a "cold call".
With regard to bank transfers or other means of electronic payment, if a company tells you that they have not received a payment you made to them, always check with your bank whether or not the payment has been taken. Before making the payment again, ensure that the original has been refunded or cancelled.
Always check the company's credentials before acting and never pay upfront or give away information if you are unsure who they are. If you do decide to make a payment to a company, make sure that this is via a UK registered credit card company so that you are protected by Section 75 of the 1974 Consumer Credit Act.
If you find yourself in any doubt, get in touch with one of our advisors who will be pleased to help.
