UK Financial Scams: A Growth Industry

"Trust me, I'm a financial adviser!"

The Financial Scams is one industry that is still growing rapidly, showing no sign of reccession. These range from the sophisticated to the downright weird – but all have the same aim: to relieve you of your money.

Recent figures from the National Fraud Authority show that the total lost to individuals from fraud and other scams is more than £6bn a year.

Here are the top 10 scams to watch out for this year (beware, there are more!);

1 Rare metals
Rare earth metals are chemical elements such as scandium and yttrium which are used in the manufacture of computers and phones.

The Financial Services Authority (FSA) warns that companies are using high-pressure sales tactics and are targeting vulnerable customers out of the blue who are often told that supply of these metals is falling, causing prices to rise.

The FSA said it had “yet to see any convincing evidence that there is a viable market for investors to make money from investments in rare earth metals”.

It says that manufacturers using these metals buy in quantity: so they are not likely to want to buy from small independent companies.

2 Pension liberation fraud
Victims are told they can release their pension funds built up before they reach 55 years old. The Pensions Regulator warns that accessing pension savings before minimum pension age is only possible in rare cases, such as terminal illness.

It says that entering into a pension liberation scheme “can be fraudulent where individuals are not informed, or are misled, as to the consequences of entering into one of these schemes”.

It says these schemes can result in tax charges and penalties of more than half the value of a member’s pension savings – and victims are seldom told about these costs.

In the UK it is possible to get 25pc from your pension as tax-free cash. For more information check with your pension provider or a legitimate and FSA registered financial adviser.

3 Mobility aids
Scams targeting elderly people have raked in more than £28m in three years. The Insolvency Service said that around 2,000 elderly people were victims of scams ranging from dodgy investments to companies selling unsuitable or overpriced mobility scooters and stairlifts.

The scam involves selling these aids on the telephone or at home to elderly people with salesmen not coming off the phone until the sale is closed.

These scams can be avoided by only dealing with reputable companies which do not pressurise clients and allow them the chance to consider a deal before paying up.

4 Dodgy job offers
This scam involves victims being attracted by fake job offers which effectively turn them into money launderers.

Financial Fraud Action UK says the offers use titles such as “money transfer agent” or “payment processing agent”.

Those who succumb become part of a money-laundering scheme and are known to authorities as “money mules”.

They are told to receive money into their bank accounts and to transfer it to another, taking a cut themselves.

The money involved is often stolen or the proceeds of drug dealing and extortion. The mules are used to move the money offshore into overseas accounts.

5 Lotteries
Lottery scams remain common, according to Which?, the consumer group. One of the scams seen by Which? purported to come from the International Monetary Fund, which promised the recipient $8m if they paid £960 to release the funds.

It’s easy to tell a lottery scam. You have to buy a ticket to have a chance of winning a lottery. If you haven’t, you can’t win.

6 Truancy fraud
Essex County Council warned last month that a parent of a pupil in one of its schools received a phone call purporting to be from the Education Welfare Service.

The parent was told that as their child had not attended school that day they would be fined £340 and they were asked to give their card details over the phone.

The council pointed out that the Education Welfare Service does not phone parents demanding payment over the phone: it sends penalty notices by post and it would not phone parents demanding immediate payment.

7 Wine scams
These are a growing concern, says the Insolvency Service. According to Decanter magazine, scammers posing as buyers have attempted to defraud suppliers of around £1.6m since May 2011.

Individuals have also been hit by scammers selling en-primeur wine. This is wine that is sold while it is still in the barrel.

Victims are told they are buying wine at this stage because it will rise in value, by fraudsters posing as wine merchants.

Unfortunately, the wine doesn’t exist, and the victims are left out of pocket.


8 Love
According to Action Fraud, there is an increase in romance scams. It has had more than 1,000 reports in the past 12 months from those who believe they have found love online but have actually become victims of criminals who want to relieve them of their money.

The typical victim has been conned out of £21,600. This scam works when those involved hand over useful personal and financial details about themselves to people they have fallen for online.

Anyone looking for love online should watch out for basic warning signs. Be cautious of unsolicited advances, especially if they have too much interest in your personal details and bank accounts.

9 Landbanking
This involves companies which divide land up into smaller plots to sell to cold-called investors on the basis that once the land becomes available for development, it will rise in value but the FSA said the land is often in areas of natural beauty or historical interest and there is little chance of it ever being given permission for developers to build on.

One plot of land recently sold was on a site of special scientific interest; another was on a slope too steep to be built on. The FSA said landbanking schemes had cost investors up to £200m.

In extreme forms scammers can sell plots of land anywhere in the world and have also been known to sell plots on the Moon!

10 Carbon credit trading
Carbon credits are certificates or permits which represent the right to emit one ton of carbon dioxide, and they can be traded. They are little understood by the general public, even when they are legitimately traded among corporations.

This Carbon credit trading scam involves cold callers targeting investors to buy into the “new big thing” in commodity trading because industries have to offset their emissions.

Carbon credits can be sold and traded legitimately, and the FSA pointed out that there were many reputable firms operating in the sector.

Investors might find they cannot sell their investment or get a competitive rate because they only have a few credits to trade.

Never trade in any commodity or venture that you do not understand or have not 'fully' studied and researched. Get references, visit sites and talk to existing customers. Caveat Emptor!

Tony Robbins and Human Needs - You Tube

According to Tony Robbins, there are the following six needs we all have:
1. Certainty – the need to be safe and comfortable
2. Variety – the need for physical and mental stimulation
3. Significance – the need to feel special and worthy of attention
4. Love & Connection – the need to be loved and connected to others
5. Growth – the need to develop and expand
6. Contribution – the need to contribute beyond yourself

Ask yoursel which two of the six human needs do you value most? By discovering what drives you, you can more easily understand your past decisions as well as be more proactive in the decisions you make regarding your future.

If you have a spouse or significant other, take a guess at which needs drive them. By knowing this, you’ll be in a MUCH better position to give them what they not only want, but need

Noam Chomsky: The Purpose of an Education - Video

Noam Chomsky discusses the purpose of education, impact of technology, whether education should be perceived as a cost or an investment and the value of standardised assessment.

Presented at the Learning Without Frontiers Conference - Jan 25th 2012- London (LWF 12)

www.learningwithoutfrontiers.com

Laid-off! Oh No! What now?

Crystal Balls

The USA reported that 2.6 million jobs were lost in 2008, with 524,000 axed in December alone. Unfortunately, the situation isn't expected to be any better in Europe in 2009. People who invested years of hard work, loyalty and dedication have been shown the (back) door. Now they find themselves out in the street, left wondering what their futures hold.

Discard Pride and take Courage
The newly unemployed can't afford to miss a beat. Yes, the economy has deteriorated. Yes, more layoffs are coming. Yes, it's harder to find a job now than it was a year ago but while some will react badly, smart job seekers will get tough and get going. They'll brush up their résumés, hit the job boards, work their social networks and polish their interview skills . Remain calm, collected and focused on finding the next opportunity.

Resting for the Hunt

Finding a new Job is Your Full-Time Job
You might not be fully employed, but you do have a job. Your job is to find a new position. Remember, you have been released from you current commitments, you have not been granted permission to take time off and lick your wounds.

Some people may feel they have enough savings to live off for a month or two, before they throw themselves back in the market. Sadly, if you let yourself slip into the "let's call it a break" mentality, you seriously risk losing your edge and when you do decide to actively pursue a job, it'll be that much harder to get back into the working harness and the pace of things.

Job hunting race
Secondly all your colleagues are now running ahead of you in the job hunting race. You may even find that you have competition from some of your old colleagues, the ones that are not being laid-off. These are the 'jump before you're pushed' brigade. The ones that have seen some scarey writing on the wall near to them and this has provoked them into finding a more secure company to work for.

If you start to pursue a new position immediately, you'll be much more fit and prepared to seek out and find the right opportunity. You will still be hot from the fight. Your readiness will show in your interview attitude, from the way you present your résumé, to the way you conduct yourself while under scrutiny and in your ability to negotiate, confidently.

Slainte!

Keep Your Spirits Up
This is not a license to drink more whiskey, not that I want to discourage you. Being laid off in today's economy can send any level-headed person into a panic. That's why it's important to keep your priorities in check, preferably a reality check. Keeping your spirits high keeps you motivated to get back out there with the level of enthusiasm you need. Did you ever walk over hot coals? as part of a team-building course. Well, if you did then remember the state of mind you assumed at that time, face forward, focus and take that first step.

Step up out of the trench
Professionally speaking, your layoff could be a big blessing in disguise. You know that you felt unappreciated, stifled or bored in your old job! The company politics were dragging you down! So, now is the time to stop whining and find your true calling. Take advantage of this time for expansion, self-discovery and growth. Re-build, renovate and re-invent yourself.

Find a job or position that really challenges you in new and exciting ways. We are all the sum of multiple characteristics and talents that grow and change with knowledge and experience. Look at the different aspects and elements of your complex character. Train and develop some of these and allow others out for some exercise and experience. Try something new. Pick up on an activity that you used to enjoy, something you already know and can expand.

Hail! Friends Countrymen!

Network, Network, Network
When the going gets tough reach out to everyone you know and maybe some that you don't.

Looking for a job is no shame on you and you, like everyone else need to be supported.

Clearly, people don't like to talk about their sudden unemployment but remember that everyone knows the economy is down. Through no fault of your own, you find yourself in the growing army of newly unemployed people but YOU are one of a kind.

Tell your friends. Tell your family. Post updates on social networking sites. Let people know you could use some help, and ask them to put you in touch with people they know are hiring. Make sure everyone knows you are in the market, you are developing new skills and have something more to offer.

New Skills! New vacancies!

Recruitment agencies can help
Talk to recruitment agencies, whether you are looking for full-time or part-time employment. These agencies have already seen a noticeable increase in clients who have never used a staffing company before now. You can be sure that they have already planned for this increase in demand. It's their job.

Advice from friends is helpful, but staffing professionals know the ins and outs of local employment and can propose or suggest that you follow a new direction, one you had not been aware of or considered. Even more importantly, recruitment agencies have established good relationships with local companies. Listen to what they say.

Skills Gap Analysis
Recruitment agencies are also a good source of information regarding what key skills are most sought after, by the market. If you have good current skills they will be able to tell you how to package and market them. If your skills are out of alignment with the market, they can give you good advice as to how to change or tune your approach to a better fit.

No Demand for Zeppelin mechanics!

Take it on the chin if they say you need to re-train entirely and get out there to find the cheapest smartest way to do this. The web is a good source of free online tuition and again your friends and network can help you here too. Seek out the one's that have current skills or work with others who have them.

Consider working for FREE for a short introductory period.

It would be a great advantage to you to find work as an intern or assistant with a company who have, and use, the key skills you need to learn or develop! Remember there has to be value on both sides or it won't work. So you need to have something to offer them. You will short circuit many of their reticence and objections if you offer your time and experience for FREE! In return you get some valuable training or much needed exposure to a new skill, methodology or application.

Clearly working for nothing is a short term activity and you cannot allow it to continue for long. You need an income and you have only a small window of opportunity before you go broke. So, once you are in-situ, you need to learn as much as you can, gaining real hands-on experience and as quickly as possible. Poverty is a great motivator!

You never know what might come from this and it will keep your morale high, maintain your social interaction and extend your network. 3 very important considerations but beware of abusive persons that will try to exploit your position.

Social Networking helps
Don't hesitate to put your professional face online. Make sure you are on LinkedIn and your profile is up to date. Your online presence is often the first place potential employers will look. If run correctly, your social network could be that extra boost your résumé needs. Exercise caution and restraint, because, depending on the content, it could also be detrimental. Post articles you've written or details of a project you're particularly proud of, not the pictures of you mooning your mates on last year's trip to Cancun.

Consider Contract work and Consulting
Although you might be leaving a full-time, "permanent" position, don't rule out the idea of consulting. Many workers overlook the option of consulting because they don't like the relative insecurity and the idea of impermanence.

The use of Contractors and contracting
In fact, many cautious employers now are showing great caution when taking on new staff. They don't want the long term commitment in such a dynamic marketplace. They want to be able to grow and shrink as the work dictates. They do this by using contractors and they manage the uptake of contractors by issuing short 3 month contracts in the first instance, with the 'potential' to extend.

From my experience it will take you 6 weeks to settle into a new company and it will be 3 months before you will become truly confident and start taking the initiative in that position. From your side, you are set to go. From the employers side, they know who they are dealing with and they have assessed your worth. They can now decide whether to 'extend' you for a more agreeable period of time e.g. 6 months or 1 year, to completely 'domesticate you by offering a Permanent contract or to 'release' you back into the Wild.

If you dismiss contracting as an option, you could be slamming the door on your career.

Once you are established as a contractor, it is not uncommon to stay with a company for 2 years or more. Years of relative security and certainty, the same pay and benefits. Remember that a short consulting assessment is often the only way into and organisation but could potentially lead to a (semi-)permanent position.

Go Girl Power!

Cultivate Suppleness and Flexibility

Consulting also has a number of benefits you won't find with a permanent position. It provides a vehicle for flexibility. That may be the flexibility to spend more time with your family, or open up that business of your dreams. Consulting usually generates a higher salary than a permanent position. It can also stimulate you business sense in a way that a more sedintary position does not.

Just say 'No!'
As an independent consultant, you always have the option to say 'No' to a project if it doesn't appeal to you. Can you imagine saying "no thanks" to your last manager? (out loud). There are a huge array of jobs available to contractors. This makes it possible to not only choose where and when you work, but what you're doing and how you do it.

The Postman earns more than you do, now
A contract or temporary position with a company keeps some income flowing while you search for a more permanent and satisfying position. It could be the key to keeping you and your family fed and healthy.

Benefits? What Benefits?
Do remember that temporary workers and contractors do not have access to the same benefits within organisations. No health insurance, no pensions, no sick pay, short notification of termination periods, etc. So, its not all plain sailing and lots of money but its something you will know in advance and can deal with. Remember what your Grannie told you, save up and put aside something for the leaner days.

With grim determination and a willingness to grow and open yourself up to new experiences, you will not be a Statistic very long!

Measured Action for Tough Times

IT Consultants and solution providers are, like everyone else, vulnerable to the recession. However, a recent Market survey shows that IT Consultants and solution providers are preparing to weather the economic storm forecast for 2009. With a lot of good fortune and luck allied to smart planning and insight, they could be positioning themselves for growth in 2010.

US Dollars, GBP and Euros
The dawn of the Obama era in the USA and the infusion of hundreds of billions of dollars, pounds and Euros in stimulus funds are not enough to clear the economic storm clouds gathered over North America, UK and Europe.

Since the beginning of the New Year, the U.S. economy alone has shed nearly 600,000 jobs. Gross domestic product fell by 3.8 percent. And the forecast for the remainder of 2009 calls for sluggish or negative growth.

Consultants poised for 2009
The technology sector, with its IT Consultants and the solution provider community poised to withstand the recessionary pressures of the general economy. The 2009 Market survey of 200 North America IT Consultants and solution providers, reveals that solution providers are very cautiously optimistic about their business prospects in 2009. They fully expect a reduction of enquiries, sales, revenues and profitability. They’re cautious optimism means they are preparing for the worst while hoping for the best.

Weathering the storm
IT Consultants and solution providers are not taking the sluggish economy in their stride. While there is a natural inclination to retreat to a safe place and ride out the downturn, the Market survey report shows many consultants and solution providers are preparing to implement, aggressive business development, sales and market plans. In an effort to not only weather the recession but to power through it and position themselves for growth in 2010 and beyond.

Gross Revenues
Gross revenues from product and services sales increased for 46 percent of solution providers, while only 24 percent saw their top lines shrink. A near equal number of solution providers (45 percent) reported increases in their 2008 profits, while 25 percent said their profits declined.

Ordinarily, healthy revenue and profit increases would be welcomed news for solution providers. But participants in the Market survey were witnessing a phenomenon caused by the recession.

Customer spending down
Consultants and solution providers reported customers spending was down and their existing budgets reduced. This is in anticipation of not getting full funding in 2009 or in anticipation of end-of-the-year budget cuts. Business-technology customers, ranging from small businesses to large enterprises, are expected to continue investments in technologies critical to business operations. This will focus on smart applications and systems that directly reduce costs or innovations that open up new revenue opportunities.

Do not be fooled, they are certainly not freely opening up their checkbooks. IT Consultants and solution providers report that their customers are already cutting back on orders, delaying project implementations and canceling projects to save money.

2009 Forecast
The stated paradox above, is part of the reason why nearly one-half of consultants and solution providers expect their revenue to increase in 2009, while only 32 percent expect a decrease. The key indicator of how tough 2009 will be for solution providers is seen in the number that expect flat year-over-year revenues;

• 30% of solution providers said their 2008 revenue was relatively the same (plus or minus 5%) over 2007,
  
• 21% expect no change in year-over-year revenue in 2009.

• The clear shift to no change or declining revenue reflects longer sales cycles and customers not committing to engagements.

The survey paints a similar picture for profitability;

• 51 % of solution providers expect no change or a decline in their year-over year profits.
  
• 64 % believe their profits will slide by 15 percent or more this year.
• 55 % of optimistic solution providers expect their profits to increase by 15 percent or more.
  
• No solution provider participating in the Market survey, expected profits to sink by 100% or more. Perhaps trying not to think the unthinkable.
  

Consultants and solution providers dependent upon conventional hardware sales expect the largest decreases in revenue and profitability. Anticipating revenue decreases this year;

• 29% of white box/custom system dealers
  
• 27% of hardware resellers and
  
• 24% of general solution providers,
  

Topping the list of specialists anticipating net revenue increases.

• 67% Software resellers
  
• 60% Software-as-a-Service (SaaS) providers and agents
• 55% Systems Integrators
  

Additionally, solution providers say that they are seeing the greatest slow down in business, from small (less than 50 employees) and midsized businesses (50 to 250 employees).

Ring fence your customers
Consultants and solution providers recognize that they must adapt to the poor economic conditions, and many are executing strategic plans to bring themselves closer to their customers. Hopefully this will allow them to preserve and protect existing revenues sources while seeking new opportunities to tap into new revenue streams. Clearly everyone is becoming more defensive of their existing clients and therefore, the new revenue opportunities will be harder to find and even harder to win, possibly with lowered margins and ROI spread over longer periods.

Nearly one-half of consultants and solution providers surveyed for the Market say that their top business goal for 2009 is improving customer satisfaction and retaining existing customers. It’s much easier and more cost effective to expand sales within an existing customer than it is to acquire a new customer and build a relationship. The risk that you put all your eggs in one big basket that could, in itself, fall.

Customer retention not detention
Of the consultants and solution providers focused on customer satisfaction and retention, most anticipate their profits will remain flat or decrease. The same can be said for consultants and survey participants focused on increasing revenue, the second most popular business goal for the year. Are you being retained or detained by your customers and service providers? Discuss!

QoS versus Market Share
Consultants and solution providers who are focused primarily on improving quality of service (QoS), will have a higher expectation of profit erosion. Conversely, consultants and solution providers focused on increasing market share or profitability have higher expectation of improving profitability in 2009. This may not be the case, when taking into consideration the cost of sales.

Revenue Growth - greater expectations?
For revenue growth, 60 percent of consultants and solution providers are squarely set on simply acquiring and developing new customers. Another 30% are expanding their relationships with existing customers. Interestingly, solution providers are not looking to their peer communities for support during the recession. Only 13 percent of survey participants said they would form an alliance with their peers i.e. consultant and solution provider partners, or partner with other consultants to reach new markets and customers.

Together we stand and divided,
we may fall