super jumbe
20th April, 2011, 12:22 PM
http://globalfinance.zenfs.com/images/UK_AHTTP_YAHOO_FINANCE_CPT/debt4_small.jpg
Scammers are homing in on new mobile phone owners, cold-calling victims as soon as they activate their number to offer bogus insurance.
How the scam works...
George Owen, a 29-year-old cameraman, recently bought a new iPhone, and within days, received a call from a company saying that it was aware he had just purchased an iPhone and asking him if he would like to buy insurance for it.
The caller had got all his details from his phone provider, so George assumed the call was legitimate. He went ahead and insured not just the iPhone but two other phones he used for business.
George ended up losing hundreds of pounds before he realised what was happening. "I'm pretty scam-aware, but I still fell for it. I thought it made sense getting the call just after I bought my iPhone. It never crossed my mind it could be fraudulent," he says.
George is not alone in falling for this scam. Although finding out the exact number of victims is an impossible task, consumer groups' complaint boards and internet forums are full of similar stories.
To initially gain their victim's confidence, the fraudsters often claim to have a relationship with a mobile phone provider, such as O2 or the Carphone Warehouse. They may get hold of the personal details of the new phone owners through intercepted post or internal fraud at some of the big mobile phone companies.
Consumer Direct suggests that sometimes it could also be through serendipity. Fraudsters apparently buy a phone from Carphone Warehouse, for example, and simply ring 500 phone numbers on either side of their new number. Each person who answers is then read the same script offering insurance on their new phone.
Trading Standards, the Financial Services Authority and Consumer Direct are working closely with the big phone providers to stamp out this type of fraud. However, despite their best efforts, it shows no signs of abating.
Scammers are homing in on new mobile phone owners, cold-calling victims as soon as they activate their number to offer bogus insurance.
How the scam works...
George Owen, a 29-year-old cameraman, recently bought a new iPhone, and within days, received a call from a company saying that it was aware he had just purchased an iPhone and asking him if he would like to buy insurance for it.
The caller had got all his details from his phone provider, so George assumed the call was legitimate. He went ahead and insured not just the iPhone but two other phones he used for business.
George ended up losing hundreds of pounds before he realised what was happening. "I'm pretty scam-aware, but I still fell for it. I thought it made sense getting the call just after I bought my iPhone. It never crossed my mind it could be fraudulent," he says.
George is not alone in falling for this scam. Although finding out the exact number of victims is an impossible task, consumer groups' complaint boards and internet forums are full of similar stories.
To initially gain their victim's confidence, the fraudsters often claim to have a relationship with a mobile phone provider, such as O2 or the Carphone Warehouse. They may get hold of the personal details of the new phone owners through intercepted post or internal fraud at some of the big mobile phone companies.
Consumer Direct suggests that sometimes it could also be through serendipity. Fraudsters apparently buy a phone from Carphone Warehouse, for example, and simply ring 500 phone numbers on either side of their new number. Each person who answers is then read the same script offering insurance on their new phone.
Trading Standards, the Financial Services Authority and Consumer Direct are working closely with the big phone providers to stamp out this type of fraud. However, despite their best efforts, it shows no signs of abating.