SMEs urged to be alert to fraud
Jun 24 2002
Smaller firms should be wary of companies that try to exploit them using the laws on data protection. The Office of Fair Trading stopped one such company producing misleading advertising recently.
The company, called Data Protection Agency Services Ltd (also trading as Data Collection Enforcement Agency) suggested that small companies were legally obliged to register with it to comply with the Data Protection Act. Its advertising also gave the impression that it came direct from the Information Commissioner.
It charges £95 plus VAT for the service, whereas the cost of registering directly with the Information Commissioner is just £35 a year. The Commissioner, Elizabeth France, warns small firms to look out for companies charging around £95 for the service. She advises ignoring correspondence from the companies listed below.
* Data Protection Act Registration Service
* Data Protection Agency Services Limited
* Data Protection Registration Agency
* Data Collection Enforcement Agency
* Data Registration Agency
* DPA Registration Agency
* Data Protection Act Registration Agency
Small businesses are a prime target for scams such as this as they usually do not have time to investigate everything thoroughly. Scams attempted on SMEs recently include over-priced fax-back systems, e-mail directories and attempts to get you to disclose your bank account details. Most common of all are letters from Nigeria and South Africa offering substantial reward for the temporary use of your bank account.
The Federation of Small Businesses (FSB) offers some simple advice to avoid falling prey to these types of scheme. "Read the small print very carefully indeed, don’t sign anything unless you are confident you know what you are signing for, and if an offer looks too good to be true, it often is!"
Anyone suspecting that someone is attempting to defraud their business in some way should contact their local Trading Standards Office.
Companies concerned about data protection scams should visit the Information Commissioner website at www.dataprotection.gov.uk. On a more general note, the FSB publishes a bimonthly newsletter containing recent attempted schemes and advice on how to deal with them.
With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com .
(20/6/02)