Public 'scammed out of £3.5bn'

The Office of Fair Trading said three million consumers become the victims of mass marketed scams each year, under which fraudsters use methods such as mailings, email, the internet, telephone and text message to recruit victims.

More than 7,000 scams were reported last year, the most common of which were deceptive prize draws and sweepstakes, followed by bogus foreign lotteries.

Under both of these scams victims are told they have won a large sum of money, but are asked to hand over cash to pay for fees or taxes before they receive their prize, which never arrives.

The third most common scam was advance fee fraud, under which people are asked for help transferring money from overseas, and they are promised a chunk of the cash if they pay the fees involved. This was followed by frauds relating to homeworking and business opportunities and property and land investment scams.

The figures were released at the beginning of the OFT's Scams Awareness Month, which marks the launch of a campaign with 90 Trading Standards Service across the country.

The OFT is calling on consumers to drop off any scam mailings they receive in designated 'Scamnesty' bins at local libraries and other public areas across the country.

The information will be used to help the OFT and its enforcement partners identify and develop strategies to combat the worst frauds. In a similar campaign in 2008, the OFT collected more than 15,000 mailings.

The campaign is being backed by television presenter Angela Rippon, who also features in a new DVD being launched by the OFT, highlighting common scams and setting out how vulnerable groups, such as the elderly, can be protected.

Ms Rippon said: "Scammers use psychological techniques to gain vulnerable people's trust. They exploit fear and insecurity to steal as much money as they can from those who can least afford it. Though anyone can fall victim to a scam it is always the oldest that are hit the hardest."