Consumer agency warning over scams

THE NATIONAL Consumer Agency has warned consumers to be wary of work-from-home scams which it says are likely to become more prevalent as unemployment rises.

The scams come in many guises and can be difficult to spot but the consumer agency said the objective is to try to obtain money from consumers in return for a token of little value, or nothing at all.

Often, the first point of contact with a scam is seeing some form of advertising (in a paper, magazine, a flyer, a pop-up message or e-mail on a computer etc) or receiving some form of notice about your personal details, it said.

“Scam artists are ruthless and see the recession as a way to capitalise on people in a vulnerable position,” said Ann Fitzgerald, chief executive of the consumer agency. “They spot the trends early, making their scams seem as authentic as possible and in doing so exploit others recklessly.

“We are warning people to be particularly cautious when responding to work-from-home job adverts. Our advice is that if a job seems too good to be true, it usually is. Consumers should thoroughly research any work-from-home offer and not get involved unless they are 100 per cent sure the business is legitimate.”

In the “envelope stuffing” scam, work is offered packing envelopes and consumers are asked to forward a fee for the raw materials. But instead of getting materials, they get instructions on placing an advertisement of the type originally seen.

In another scam, an advertisement offers work putting products together, such as model kits or toy dolls, and selling them back to the company. In this case, while consumers get the raw materials, when they return the completed product, they are often told there is no market or that the work is defective. Either way they don’t get paid and the company gets its manufacturing free.