If it looks too good to be true...

THEY are among the most devious of wrongdoers, the villains who prey on human weaknesses to get their hands on other people's money. And the tools of their trade cost them nothing - because they rely on ignorance, carelessness and greed.

Scams aimed at businesses are a classic example and, over recent weeks, there has been a spate of warnings in the region about the latest round of cons. Police, trading standards departments and business organisations say that the scams, many originating abroad, can all be defeated using commonsense.

As a spokesman for the National Criminal Intelligence Service (NCIS) says: "The golden rule is that if it looks too good to be true, it usually is. Fraud is a crime against hope because that is what it exploits."

Today The Northern Echo examines some of the favourite scams - and how to beat them.

WEST AFRICAN CRIME

West African organised crime is a massive global business: in the UK alone it is estimated that fraud committed by West African crime groups costs victims at least £3.5bn a year, many of them business people.

Several weeks ago, for example, Darlington trading standards officers warned that companies in the borough had been receiving e-mails, supposedly from the widow of deceased Nigerian head of state General Sani Abacha. She claimed to have $5bn which she needed to get out of the country, and anyone willing to help was promised a 20 per cent commission.

The scam was a classic example of the 'advanced fee' method. According to NCIS, more than 1.4m advanced fee letters have been intercepted by the postal service in Britain alone since 1998. One per cent of recipients act on the letters, and the average loss is £30,000, although one woman in southern England persuaded members of her extended family to invest and they lost £100,000.

The letters are designed to persuade victims to pay advance amounts in order to obtain commissions which never materialise, or to obtain victims' bank details after which accounts can be bled dry.

They are masterpieces of reverse psychology. Letter writing has become a cottage industry in parts of West Africa and the documents are carefully prepared to make the sender appear simple-minded. Handwritten and with deliberate spelling mistakes, the idea is to convince Westerners that they will in fact be conning the West Africans, according to NCIS .

However, the number of letters is diminishing as the gangs embrace new technology. NCIS was receiving 500 e-mails a month referred by potential victims at the start of 2001 - by the end of the year it had risen to 4,000.

The gangs are flexible: recent e-mails related to the need for the families of murdered West African politicians to get their money out of their countries - even before the person had been killed - and similar e-mails went out shortly after the Concorde disaster, saying a West African VIP was on the plane.

An NCIS spokesman says: "There has been a vast increase in line with Internet connectivity. Four thousand is the tip of the iceberg and it will continue to increase as the developing world witnesses increasing access to the Internet.

"Small businesses are targeted because they are regarded as vulnerable. The gangs also target retired businessmen in their 50s and 60s who might not be as sharp as they were and who wish to make an investment with high returns."

THE FAKE INVOICE

The North-East Chamber of Commerce has warned companies to be on the lookout for marketing flyers for a fax directory based in Switzerland. Designed to resemble an invoice for £417, the flyer could easily slip through accounts departments and be paid if staff are not vigilant, says the chamber.

Nigel Green, trading standards manager for Darlington Borough Council, says that another scam was to send fake invoices for directory listings. One from Barcelona demanded £466.39.

He says: "In large companies these may be dealt with by a junior who may receive what they think is an invoice but not do much checking and pass it on for payment."

UNNECESSARY EXPENSES

The North-East Chamber of Commerce and Darlington trading standards department are among those warning about recent mailshots which warn companies to register with the Data Protection Commission through an upfront payment to a different organisation. Such a payment, according to the mailshot, will avoid prosecution for breach of Data Protection law.

However, whereas the Data Protection Commission does charge for some services, companies should always check before paying. According to Mr Green, one British company charges £111.63 to register on behalf of prospective clients when genuine registering is only £35 and may not even be needed in some cases. It is not illegal, he says, but is deliberately misleading.

For confirmation of registration needs, the Commission is on (01625) 545700.

THE PREMIUM LINE FAX

Businesses may receive faxes enticing return faxes to obtain business benefits. However, the reply is on a premium line which means the perpetrator makes a lot of money.

Non-business householders wishing to obtain advice on how to reduce unwanted faxes can contact the Direct Marketing Association's Fax Preference Service helpline on 0845 0700702.

Mr Green says that it was also expected that more cons would take place on the Internet. He says: "We are expecting to see more instances of this as more e-mail addresses become available."

THE BUSINESS OPPORTUNITY

Businesses or individuals may receive communications offering a chance to make a lot of money through investment, or on projects which require advance payment of a training fee. Mr Green said such communications were to be regarded with great suspicion.

Similar care also needed to be taken when approached by companies offering services at inflated prices. Such practices were not illegal, says Mr Green, because the companies offered a service, but it made sense to always obtain three quotes before signing anything.

He says: "People need to be vigilant and sensible and check things out."