OFT sets up 'scambusters' team

The OFT estimates that Britons lose £1bn a year on various scams, which exploit low-cost marketing techniques to ensnare as many victims as possible.

The most prevalent in recent years have been bogus prize draws and fake overseas lotteries. Victims of these scams are often encouraged to phone premium-rate phone lines to claim a prize, or even encouraged to send cheques to cover "administration" fees, ahead of their alleged winnings being paid out. Many scams target the elderly, who are often the most vulnerable.

The new OFT team will aim to target the scams by raising consumer awareness, as well as working with postal operators and accommodation address agencies in a bid to block the bogus mailings. The team will work alongside law enforcement agencies in the UK and overseas.

Christine Wade, the director of consumer regulation enforcement at the OFT, said: "Scams are a big business. The OFT's new team will target deceptive schemes that exploit consumer vulnerabilities to con people out of their money. Tackling scams is a priority for the OFT and we are determined to protect consumers and fair-dealing businesses."