SCAMS - 23.04.2009

Scam alert - training doesn’t exist

There’s a new scam your company needs to watch out for. This time it’s in the form of bogus training. So if you’re looking at training options, how can you be sure that the provider is genuine and you won’t lose your hard earned cash?

You may be vulnerable

In today’s economic climate your company needs to be able to operate at maximum effectiveness and your staff need to be as good as they can be. This is where training can be an investment for your business. But it seems that scammers have seen this as a lucrative new area and are offering fake courses to companies just like yours.

How do they do it?

Typically, there are two types of training scam. One is where the training doesn’t exist at all - the provider just takes your money and vanishes. The other is where the course goes ahead but it’s of poor quality, or the qualification isn’t recognised.

Tip. If the course claims to offer a qualification, e.g. City & Guilds or NVQ, check they are accredited with the relevant examining body.

Scope of the scams

According to the Office of Fair Trading, there’s been a steep rise in the number of bogus courses. They cover a wide variety of areas, but the one with the highest number on offer is IT - probably because of its wide appeal. Some fraudulent providers go to great lengths to convince you that they’re real. They do this by setting up websites which imitate those run by organisations offering genuine training.

Tip 1. Look at the provider’s contact details and make sure that they have a full address and a landline telephone number that works. A PO Box address or mobile phone number is suspicious.

Tip 2. Request sample course materials. If they won’t let you have these, ask yourself why.

Tip 3. Ask them for a reference from another company that’s used their training. A reputable provider will always let you have this and you can make your own enquiries with the referee.

Hand over your money

As the scammers’ main objective is to get their hands on your money as quickly as possible, they’ll usually insist that the full course fees are paid up-front. You do have legal rights to cancel training, but where scams are concerned they’ll probably be inadequate.

The law

Courses sold over the phone or Internet are covered by the Consumer Protection (Distance Selling) Regulations 2000. These Regulations give you a seven-day cooling-off period. During this time you can cancel for any reason. But, by the time you realise that the course doesn’t exist or that the teaching isn’t up to standard, it’s usually too late to do anything.

Tip. Legitimate providers may offer a longer cooling-off period and allow you to pay in instalments. This should be spelt out in their terms and conditions. If it’s not, ask them to put their payment and refund policies in writing.

Trap. Don’t part with any personal details, e.g. bank account information, until you know a course is legitimate. Some bogus training is simply a front to obtain details to commit identity fraud.

For further information on government-approved training courses, visit http;//companydirector.co.uk (CD 10.14.03).

Certain training areas are well-suited to scams. Avoid providers with suspicious contact details, e.g. a mobile number and PO Box. Be wary if you’re asked to pay for the whole course up-front, and get the cancellation terms in writing.

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