Monday, October 15, 2012

Hang up on sickening phone scams



Elderly woman on the phone
Every week we receive tales of fraud, scams and rip-offs. The most distressing involve the callous exploitation of elderly savers, often through the telephone equivalent of "door stepping" where the scamsters won't hang up until they have fleeced their victim. But a tale we were sent this week is one of the most sickening I've heard.
It involves a 75-year-old woman – we won't say her name – who was phoned by a firm, ostensibly in Dubai, that appealed not just to her vulnerability and naivety, but her good nature, too. The caller knew the lady had shares (how? she probably once had a holding in a privatisation or demutualisation, and names on share lists are swapped mercilessly between "boiler room" crooks). He convinced her to sell her existing shares – did she know they'd been under-performing? – and buy "carbon credits" instead. They're green, environmental and backed by governments around the world. What could go wrong?
The crook could scarcely believe his luck when she handed over half her life savings, £133,690. When, later, she thought better of it, the crook said she'd signed a contract and if she didn't pay up he'd pursue her through the courts. Under pressure, she paid up – and the money disappeared into an account in Williamsburg, New York.
Once you have been stung once, they try to sting you again. She was pestered and persuaded to hand over a further £100,000 – a sum that would leave her virtually penniless – to an account in Coconut Creek, Florida. Thankfully, her son found out, and at the last moment halted the transfer.
He has since tried desperately to recover the money, but with no success. The Financial Services Authority is not interested ("incredibly unsympathetic" in his words) because carbon credits are outside the remit of regulators. In the looking-glass world of consumer investor protection, regulators can only intervene on "authorised" investments. Carbon credits are a recent invention, so you're on your own.
They told him to contact the police, who helpfully gave him a crimereference number, but precious little else. The victim's bank was negligent, too – use your card on holiday in Dubai and it will block your account unless warned – but hand over £133,690 to an account in America and that's fine and dandy.
The final twist in this story comes from JP Morgan, the giant US bank, who rang the lady to promise help in recovering the money, for a £2,000 fee. She nearly paid. Of course, it wasn't JP Morgan but the same fraudsters trying to squeeze out the last drop of cash.
Sadly, we can do nothing to help, except to warn others. There is a real market in "certified" carbon credits, but the "voluntary" credits sold to our victim are almost worthless.
The National Fraud Intelligence Bureau, run by the City of London Police, is blunt. In June it issued a statement which said: "If you buy carbon credits you WILL NOT make any money no matter what the salesman says."
The low-lifes and toerags who target the elderly will stoop to anything. Always put the phone down – and tell everyone you know to do the same.

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