Legal advice: Top ten anti-scam tips
The world can seem a dangerous place for licensees. Over the past 12 months, pubs have faced threats from a string of professional scam artists who are devising cunning schemes to trick licensees into parting with their hard-earned cash.
The latest scams include scaremongering letters demanding payments to meet government legislation, telephone calls from bogus salespeople selling anything from advertising to rate appeals, as well as new entrants to the trade being taken for thousands of pounds with the promise of the pub of their dreams.
While some of these only rob the licensee of hundreds of pounds, there are horror stories of licensees being put out of business because they were promised loans.
But don't despair. Here we offer the definitive guide to the ultimate defence against the scammers, with some expert advice from the Trading Standards Institute's lead officer on scams, Sarah Smith.
Top 10 tips
Spot a scam artist
Scam artists will try to catch you unawares by contacting you without you asking them to by phone, email, post or sometimes in person. They will sound pleasant, well spoken and kind (on the phone or at your pub) and want you to think they are your friend. Scams offer you something for nothing, or trick you into signing up for something that isn't beneficial to your pub. They might be rogue energy brokers, dodgy financial brokers or simply customers who on the surface seem to be offering you a great deal but in reality are trying to rob you of your money.
Protect your personal information
Share credit card or other personal information only when you are buying from a company you know and trust. Know who you are dealing with. Don't do business with any company that won't provide its name, street address and telephone number. Take your time. Resist any urge to 'act now' despite the offer and the terms. Once you hand over your money, you may never get it back. Read the small print. Get all promises in writing and review them carefully before you make a payment or sign a contract.
Use filtering software on your computer
Many internet service providers offer filtering software to limit the spam in their users' email in-boxes. In addition, a few 'filter tips' can help you save time and money by avoiding common email scams. Use anti-virus software and a firewall and keep them up to date.
Secure all sensitive information
Shred all unwanted bank statements and credit card statements, or anything else that contains sensitive information about your pub. Take care of your post. Make sure it's all coming to the right place, keep financial information about your business locked away and monitor who has access to it. If your business is computer- ised, make sure you've got the latest anti-virus software so that sensitive data is protected. Sign up to a credit reference agency and check for any unexpected changes in your credit rating.
Make use of services
Reduce unwanted mail by registering with the free Mailing Preference Service on 0845 703 4599. Registering will make it easier for you to spot a scam in your mail. If in doubt, bin the letter. Register your telephone number, free, with the Telephone Preference Service (TPS), by calling 08450 700 707. Many telephone companies allow you to block callers from the UK and Channel Islands which withhold their number. You can also bar calls to premium rate services and international rate numbers.
Investigate the company
It's easy to check if a charity's genuine or not - check the online register of charities at the Charity Commission website www.charity-commission.gov.uk. Also, you can check to see if mail from the company comes from a member of the Direct Marketing Association. Sarah Smith says: "Checking to see if a company has had complaints made against it is probably the most difficult thing to do. We only start to publicise companies once they've been through the legal process. The Office of Fair Trading (OFT) has some information about people they've taken action against. They're very aware of the legal issues with naming and shaming."
Keep important paperwork
Always keep any contract and make sure you get a copy of it at the time you sign it. If you are going to give your bank card or building society details then make sure you do it in writing.
Know your legal rights
In a contractual situation, if a company makes misrepresentations then the contract is null and void. It then becomes a case of the scammer trying to sue you for the money, which is unlikely.
Train your staff
Each business is different in terms of staff liability. You may be liable if a member of staff agrees to a contract over the phone, for example. Encourage staff to look at the OFT website. If you've got inspections from a local authority trading standards officer, ask them to chat to the staff.
If you suspect a scam, report it
Discuss it with your friends and family. If you feel you have been the victim of a scam you should report it to Consumer Direct on 08454 040 506 or visit www.consumerdirect.gov.uk. You can also contact your local police station.
Other useful places to get information from are the Office of Fair Trading, 08457 224 499 or visit www.oft.gov.uk/consumer/scams, your local Citizen's Advice Bureau or visit its website at www.adviceguide.org.uk. You can also report the scam to the Information Commissioner's Office. If you receive an email which you believe is a scam, forward it to scams@oft.gsi.gov.uk.
Trading standards can give advice on whether you have a legal contract or not. They have also in the past tried to negotiate on behalf of small businesses with people who are perpetrating these scams.
