Fraudsters targeting elderly consumers with bogus energy saving scam

Fri, 02 Dec 2011
 
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Elderly Britons are being warned to be wary of dangerous energy saving devices being offered over the phone .

The Trading Standards Institute (TSI) said it has received more than 200 complaints about rogue telephone fraudsters who are offering a £99 plug-in gadget to elderly householders who believe they are being contacted by their energy supplier, or by someone working in partnership with them.

By using the appliance, users can save money by cutting their electricity use by 40 per cent, the scammers claim.

However, tests have shown that a number of the devices are dangerous as they do not meet electrical safety standards, and do not deliver any tangible energy savings .

"Consumers are warned not to use the product as they pose a risk of fire and electrocution, and a safety recall has been issued for the items traced so far," Ron Gainsford, TSI chief executive, said.

"Unscrupulous criminals are using the rising energy prices as an opportunity to lure cash strapped consumers – elderly people seem to have been deliberately targeted. The number of complaints we are currently dealing with is bound to be only the tip of the iceberg."

Names used so far by the rogue callers are 1 Stop Marketing Solutions, ITC Development Corp, Power Saver and Athico Ltd, but Trading Standards officers have warned that the fraudsters could be operating under other names too.

Sue Jones, of Westminster Trading Standards, said complainants have told trading standards the caller always appears to be very credible, already knowing a consumer's details, their energy supplier and sometimes some or all of the digits of their credit or debit card .

"Often consumers do not realise that they have been defrauded until they receive the dodgy looking device with instructions in broken English and the accompanying invoice which names an unknown supplier and often gives an American address," she added.

Consumers who have responded to one of these cold calls are being urged to report the matter to Action Fraud on or Consumer Direct, and cancel their debit/credit card . If a device has already been sent to their home, they should dispose of it carefully.