HOUSEHOLDERS are being warned to watch out for a scam designed to trick them out of their hard-earned cash.

The mass-marketing scam gives people the impression that they have a chance of becoming millionaires if they part with a small sum of money.

The warning comes from Consumer Direct Yorkshire and the Humber, which was launched in August last year by the Department of Trade and Industry.

Since then, the organisation has been inundated with hundreds of calls from people who have been contacted by a company based in Canada.

The company has offered people money that has been allocated to them, lottery winnings or prize draws that they have allegedly won.

The company states that there is only an administration fee to pay.

The winning lot will then be allocated when the company receives the administration payment of £30.

Consumer Direct manager John Field said: "Since our launch, we have received hundreds of complaints about mass-marketing scams, this is yet another and even now we are aware of people being tempted.

"People need to realise that they will not only lose money but they will also become potential future victims to other scams."

Consumer Direct provides advice to people across the region and is a scheme which will eventually be in operation across the country later this year.

Consumer Direct works with various trading standards departments, who investigate the complaints it receives.

Consumer Direct staff can be contacted by calling 0845 404 0506 Monday to Friday, from 8am to 6.30pm and on Saturday between 9am and 1pm or log on to www.consumer direct.gov.uk