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OFT work helps Swiss authorities shut down PO boxes used to target scams to UK

125/04    11 August 2004

The Swiss authorities have closed PO boxes which were being used to receive mailing scams targeted at the UK by over 40 companies (see note 1 for names). This follows information sent to the Swiss by the OFT.

Many of the schemes targeted the UK with prize draws, sweepstakes, lotteries and so-called 'psychic letters'. Last year the OFT had over 1400 complaints about deceptive or misleading mailings that used Swiss PO boxes.

An example of the psychic letters is one sent by 'Madeleine Lecoeur' which said that five confidential messages had been received from 'beyond' involving a £100 cheque, winning a game, some lucky numbers (for a future lottery win of £100,000), a message about pyramids and happiness, and the consumer's name spelt backwards (which is how the psychic identifies the lucky recipient).

The mailing explains how the messages were received and how the psychic deduced for whom they were intended. A psychic reading of this sort, it continued, would normally cost £126 but the consumer was getting it for free as the messages came spontaneously from 'beyond'. Should the consumer wish to claim the information in the messages, however, they were required to pay £18 to cover administration and a further £3 for post and packaging.

Typically the prize draw mailings suggested the recipient had already won or been selected to win a prize but needed to send an administration fee. One such mailing sent by FIAG said the recipient had already won £10,500 and this could be doubled by adding their lucky number to the entry form. All the consumer had to do was send an £18 administration fee and £3 for post and packing – in fact they received nothing.

Penny Boys, OFT Executive Director, said:

'The closing of these PO boxes is an excellent result for the Swiss authorities, the OFT and consumers as a whole and shows the importance of international co-operation in tackling scams. But other variations of these mailings continue. Consumers should not send money in response to such approaches.'

NOTES

4. While the OFT cannot intervene in individual cases, consumers who feel they have been a victim of these type of schemes should contact the OFT by telephone on 0845 7224499 or by email on enquiries@oft.gov.uk. Consumers can also complain to their local trading standards department of their local authorities.

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