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Every day, people throughout the UK are falling victim to a scam of one kind or another.

These scams come in different forms – letters, email, telephone calls and text messages.

It could be an unexpected prize draw or lottery win, or a chance to invest in an exciting new money-making or investment programme.

Promotions of this kind, however they are distributed, are a dishonest attempt to trap you into parting with your money.

If YOU are approached and offered something that seems too good to be true, before you respond

STOP AND THINK

and ask yourself these questions:

• Was the offer unsolicited?
• Did it come from overseas?
• Does it look to good to be true?
• Do I have to respond ‘at once’ – what’s the rush?
• Do I have to make a purchase to win a prize?
• Do I have to ring a premium rate telephone number?
• Do I have to give my bank or credit card details?
• Do I have to send the money to a PO Box number?
• Am I asked to keep it confidential?
• Can I afford to lose the money?

Before you part with any money, take legal or professional advice because the chances are, once you have sent it, you will never see it again.

You can reduce your chances of being swindled by knowing who it is you are dealing with. This will help to protect you against getting involved with scam operators who set up companies, rack up debts then close up shop, leaving their debts behind.

Keep these points in mind:

• Ask for the name of the person you are speaking to and who they represent.
• Take notes of conversations, including dates, times, names and important points.
• Ask for an explanation of anything you don’t understand.
• Read letters carefully and seek professional help (eg an accountant or a solicitor) if significant money, time or responsibilities are involved.
• If you want to check out the bona fides of a company, contact Companies House or the Financial Services Authority.
• Find out who you are dealing with. Independently verify any claims made by a sales person, investment adviser or advertisement.
• Make sure that any company you deal with complies with the applicable legislation. (In the UK, all companies must be registered with Companies House.)
• Only do business with companies you know and trust.
• Make sure you fully understand all the terms and conditions of any offer made to you
• Take your time before you make any decision.
• Don’t provide any financial or other personal information before you establish whether the company is legitimate.
• Understand and monitor your investments and ask frequent questions and map out your financial goals before you meet with a financial planner.
• Don’t judge the credibility of a company or sales person by how ‘professional’ they or their promotional material or website seems.
• Don’t fall for high-pressure sales tactics.
• Don’t let embarrassment or fear keep you from reporting fraud or abuse to the appropriate authorities.
• Don’t ever be afraid to ask questions. In fact, the more questions you ask, the better

In all situations, the old maxim applies: If it sounds too good to be true, it probably is.