COMPANIES are being warned about a data protection scam operating in the North-East.

Firms are being urged to be on their guard after organisations posing as collectors on behalf of data protection are demanding vastly inflated payments for Data Protection Registration.

Bogus officials are asking businesses to pay up to £95 plus VAT for the service, but the statutory fee is £35 on which no VAT is payable.

The firms offering the service have no connection with the Information Commissioner, who controls the register.

Willie Herdman, business advisor at the Business Innovation Centre (BIC), has been approached by several companies on the receiving end of the demands who were concerned about what to do.

He said: "The vast majority of companies do not have to register anyway.

"We have been asked by several companies worried about receiving an official looking form asking if this is a scam, and it is.

"These demands for payment have been received by post, fax and e-mail, but our advice is, if anyone receives one and intuitively feels there is something dodgy about it, then before paying up they should check with Business Link or the BIC."

Mr Herdman said: "What these businesses are doing is not illegal because they do actually register the companies, but at an inflated price."