Reports of frauds, deceptions and scams keep appearing, weekly even daily, on
major news channels and newspapers. Some of these frauds seem just too big and remote to be of immediate, direct relevance to our daily lives. But, we will eventually pay for the consequences and damages, in taxes, costs of goods and services, regulations, copy-cats etc.

I hope we can collect, in one thread, frauds and scams, reported or heard. We must become more aware and more educated to guard against frauds and scams
which impact upon the health, well being, and wealth of ourselves and our families.

"The rates ARE still pretty good. "

Glad to hear you confirm my impression.

TP

I had never heard of ICICI bank until last Saturday. We were at an Indian community centre queuing for an Indian visa for our jollies next year and icicicicici (what a daft name I said immediately - people could get confused) set up a display there. Very nice people but I'm afraid I wouldn't put money into an Indian bank. Not sure why. guess I'm a bit prejudiced.

Or does the name just remind me of BCCI?

Erm....err....just to further help trash what it means to be a customer of ING Direct...

1. Your e-mail is about three days late. Others had this same e-mail on the 24th November.

2. As you are already a customer, I bet you my 5 that you are probably not aware of their 5.25% AER Ing Direct Web Saver account product, which is so very easy to open and can link up with your existing Ing Direct Internet savings account.



If you are thinking of moving your money out of ING, check out 'Icesave' as well as 'HiSAVE'.

Good rates Doc but, unfortunately, no use to me as we need to withdraw amounts on regular basis.

Firstdirect also do a savings account whereby if you withdraw anything during the month the whole balance earns nothing for the whole month. Pretty useless unless you can guarantee from the start that you will be able to withdraw the whole balance each time, and also on the first day of the month each time. I wonder how many people sign up without understanding the rule properly, or are caught out by unforeseen circumstances. This type of account should be banned IMHO.

I did open one with 1 but that was merely to save the 10 per month charge Firstdirect have just (very bravely) introduced!

You guys might like this:-

CHAPS Calculator

Bolshi, #324. It reminded me of the weasel word generator I was shown many years ago. Managements often seem comfortable, demand and dishes out those wonderful sounding, but meaninless and usually deceitful phrases and expressions. Popular word vary by business and profession. These used to be one to three word phrases but seem to have wormed into whole sentence these days.

Some shorter examples

"offer"
"consistently good"
"we know"
"from talking"
"our customers"
"majority prefer"
"always remember"

ING is probably a good bank but it is not a PR statement.

I wonder whether Fairpak literatures and statements contain similar entertaining expressions.

axdpc. They must go on the same course. Probably run by a Blair aide.

I've just re-read my post #324 "we need to withdraw amounts on regular basis"

I must remind the wife that we also need to occassionally deposit some as well!

A lot of companies don't seem to like you withdrawing anything out ever. The penalties are pretty severe. I liken them to the credit card providers who screw you if you don't pay off all the remaining balance every month.

It remind me of when I was looking round in order to change my broker. I looked at Jarvis who seemed great, but on reading the small print I found that they charged 10 for every cash withdrawal even though it was via bacs. "We are not a bank sir!" Was their reply when I asked why this daft amount. "And I'm no longer a potential customer chum!"

TV Quiz phone-in rip-offs

Bolshi, on post #329. "I'm afraid I wouldn't put money into an Indian bank. Not sure why. guess I'm a bit prejudiced."

IMO, it is unhealthy and dangerous that PC pressure sometime forces people to ignore their experiences. We should act based on our past experiences much moderated or enhanced by learning. I, too, avoid some companies and brands; take a default cynical view of commercial, financial and political spins; arm myself with a mental shotgun when confronted with those smiling, insistent, trying to put a foot inside the door, door knocking energy salesmen; and make great effort to avoid helping people whom I judge to have high possbility of exploiting others with quiet gloat and afterwards gleefully repay with sharp elbows and poisonous daggers. ...

Anger at post office closure plan

"There has been an angry reaction to reports that thousands of post offices are to be closed to save money.

About 2,500 and 3,000 post offices - most of which are in rural areas - are set to face phased closure after a government announcement on Thursday.

National Pensioners Convention general secretary Joe Harris said it would be "devastating news".

Royal Mail said the size of the network - which is losing money - depended on the level of government funding.

The Department of Trade and Industry described the current size of the network of 14,000 post offices as "unsustainable".

The network is making huge losses, and is due to lose a 150m-a-year subsidy for rural post offices in 2008.

..."


150m-a-year is less than the 400m that could have been earned, @5% interest, from the 8bn+ UK lost, in one year alone, to the carousal VAT fraud. We have lost not only 8bn lat year but potentially an additional 400m every year ...

Stag parties warned of Riga scam

"British men on stag nights in Latvia are being lured into strip bars before being beaten up and forced to hand over cash, the British embassy has warned.

Officials in the Latvian capital Riga say men are being enticed into the bars with the promise of free alcohol.

They are then prevented from leaving by those running the scam until a large bill has been settled.

..."

Probably the most convenient thread to park this one even though it is striclty, for now, neither a scam nor fraud. But the size of potential compensations makes it an interesting one to follow ... With the amound of money at stake, this can drag on for decades.

Are penalty charges bank robbery?

11 Dec 2006.

"Banks are making billions of pounds each year from penalty charges. But now the legality of these charges - which cost their customers an average of 30 a time - is being called into question and thousands of customers want their money back.

We have investigated why some campaigners claim penalty charges are illegal and what the banks and their regulators are doing about it.

Last year the top six High Street banks in the UK made an estimated 4.5bn from penalty charges. These are charges that are incurred for unauthorized overdrafts, bounced cheques and clearing Direct Debits when there are insufficient funds in the account.

The Campaigner

Stephen Hone is a young father of three and a law student based in Plymouth. When Stephen's bank, Abbey, removed 64 from his account for two 32 penalty charges he called his branch and asked them to pay it back.

"I was livid, I was really annoyed that they refused to give me the money back, the banks are always trying to say they're sympathetic," says Mr Hone. His bank pointed out that these charges were fair and within the terms and conditions of his contract. Mr Hone, however, believed those terms and conditions were unfair and therefore illegal.

Abbey offered to refund one of his charges.

The Legal Position

Stephen argued that under the Unfair Terms in Consumer Contracts Regulations (1999) all penalty charges have to truly reflect the cost of administering them.

They are not permitted to be a profit-making enterprise for any business. He believes if a penalty charge is higher than its administrative cost, it is illegal.

...

The highest cost banks could justify for bouncing cheques is 4.50

..."

4.5bn of penalty charges in one year would mean either we as a nation bounce LOTS of cheques (1bn?) or the banking admin and IT system is grossly insufficient, or banks made bn's from penalty charges ???

If the banks was found to have overchaged, by as much as 10 times, and had to refund the extra changes, then, one way or anther, we will all be made foot the bill.
I cannot see the banks are willing and perhaps would struggle to pay back 4bn x 6 years = 24bn + compound interests. In a way, we see how some banks are making such good returns andthus able to reward the shareholders, staff and executives ...

If anyone is wondering why motor insurance increases higher than the rate of inflation ...

Fraud body warns of crash scams

"Criminal gangs may stage 20,000 road accidents in the next 18 months, a fraud body has warned.

The Insurance Fraud Bureau, which was set up in July, believes 400 criminal networks are at work.

One tactic gangs use is to drive to a busy junction or roundabout and brake sharply causing an innocent motorist to drive into the back of them.

They claim the other motorist was at fault because they were driving too fast or too close behind them.

A false and inflated claim is then made to the motorist's insurer for whiplash and damage which can net the fraudsters up to 30,000.

There can be a whole network of people involved in the fraud with doctors and mechanics writing reports to support the case.

Richard Davis from the Insurance Fraud Bureau estimates there have already been more than 20,000 of them across the UK in the last seven years.
..."

Insurance Fraud Bureau

Staged Car Accident Scam

"You're on a roundabout, when suddenly the car in front of you slams on its brakes - but you can't tell, because the brake lights don't work. You hit the carbut have you actually been the victim of a scam?

How It Works
The key to this scam is that it's difficult to prove it's a scam by the insurance companies, and that the police generally will not investigate or prosecute unless presented with strong evidence by those insurance companies. It first came to light in early 2005, with a spate of similar accidents in West Yorkshire, although the idea is thought to have originated in the North West.

A driver, usually in an old car, disconnects his brake lights, so you can't tell when he's braking. When being followed around a roundabout, he slams on his brakes for no obvious reason, and the driver behind then ploughs into them, causing damage to the cars involved and usuaully a injury to the first driver and passengers, more commonly whiplash.

Because it's a rear-end collision, the second driver, who's really the victim of this heavily organised crime, is assumed to be at fault. The first driver - and the passengers in the car (if any) - claim on the victim's insurance. Witnesses, part of the same gang as the driver, will come forward to verify what happened.

The gangs behind this often own garages and car hire firms. A minor crash can produce a 20,000 or 30,000 claim. Insurers believe there could be as many as 10,000 induced accidents a year.

It goes without saying that staging an accident this way is not only illegal, but also highly dangerous, and can easily cause serious injury or even death. To the insurance industry it's part of the greater sense of insurance fraud that costs 1.5 billion a year, and adds an average of 50 to your car insurance premium.

How To Avoid The Scam
The main way to avoid this scam is to follow the rules of the road, and not follow another vehicle too closely. In practical terms, especially on roundabouts, that's not always feasible. So remain very alert. Keep an eye on the vehicle in front. The occupants may turn to look at you or may even make a gesture just before the trap is sprung.

Staged by professionals, it's truthfully not always possible to avoid this, unfortunately.

What To Do If You Think You've Been A Victim

* As with any accident, exchange details with the other driver. If there's been a possible injury, inform the police.
* Have the other driver write down his version of events.
* Write down your own version of the events, including descriptions of the people in the other vehicle - their sex, what they were wearing, everything you can.
* When you contact your insurance company, tell them you believe you were the victim of a scam. The insurance industry has set up the Insurance Fraud Bureau to share intelligence on suspicious claims.

Remember, this is a large, organised crime, and usually very professionally executed. If you suspect that the accident is not genuine, leave it to your insurance company to investigate. They're eager to crack down on this particular type of fraud. "

Online banking fraud 'up 8,000%'

"The UK has seen an 8,000% increase in fake internet banking scams in the past two years, the government's financial watchdog has warned.

The Financial Services Authority (FSA) told peers it was "very concerned" about the growth in "phishing".

Phishing involves using fake websites to lure people into revealing their bank account numbers.
..."

Revenue admits theft of staff IDs

""Virulent" organised fraud in the tax credit system is the result of illicit access to government payroll records, the UK's Revenue chief has said.

HM Revenue & Customs executive director David Varney told MPs as many as 13,000 civil servants' personal information had been stolen.
..."

Alert over 'secret shopper' scam

"Consumers are being warned by the Office of Fair Trading (OFT) of a sophisticated new scam targeting people across the UK.

The potential victim receives a "secret shopper" letter with a 50 cheque.

The victim is told to cash the cheque and then immediately complete a secret shopper assignment, which involves wiring 1,500 to Canada.

The cheque is bogus and the victim loses any money sent by wire transfer to the address in the letter.

Warning on the scam, the OFT said that consumers should never send money to a stranger using a money transfer service. "