Work has started on the rollout of partial refunds to those around the UK who fell prey to an international mass marketing scam, following a four-year investigation that saw National Trading Standards (NTS) work alongside the US Federal Trade Commission.  

As a result, more than £530,000 will be returned to more than 3500 victims, marking a new approach to obtaining proceeds of crime from international fraudsters. 

So far, in South Lanarkshire, the Trading Standards team has been able to identify around 20 people who will be eligible for compensation averaging hundreds of pounds each.  This information is gathered from various sources and databases both local and national and verified with the individuals concerned. 

Once confirmed, these consumers will be visited by officers from the council and will receive a pre-loaded Mastercard, which they can spend in shops or pay into their bank accounts.  

The landmark investigation set out to identify US-based fraudsters who targeted UK households with scam mail claiming ‘guaranteed’ cash prize payouts.  The personalised mailings correspondence deliberately targeted vulnerable people and drew in victims by asking for an upfront fee ranging from £25 to £40. Many paid the fee a number of times before realising there was no cash prize. 

The NTS investigation identified a criminal enterprise based in Kansas as the source of the mailings. Kevin Brandes, William Graham, Charles Floyd Anderson, and their companies ran a classic and vintage car sales operation and held millions of dollars in a variety of bank accounts. Action was taken against them in 2018, which saw them agree to forfeit $30 million in cash and assets, of which $25 million will compensate victims worldwide. 

National Trading Standards has secured the first compensation scheme outside of the US. 

Councillor Robert Brown, Chair of South Lanarkshire’s Community and Enterprise Resources committee welcomed the ground-breaking investigation.  He added: “Falling victim to a scam can have a huge emotional impact and so often disproportionately affects the most vulnerable in our communities. I’m delighted that our own TS team can play a part in using the proceeds of these crimes to provide compensation to those we know have lost many hundreds of pounds in our local area. 

“Mass marketing mail fraud represents a persistent threat to UK consumers, and particularly to vulnerable and elderly people. This investigation and approach to obtaining the proceeds of crime send a clear message that fraudsters, wherever they are based, can be caught.” 

If you think you have been targeted by a mail scam you should report it on 101 or if you’re unsure about a ‘too good to be true' offer, take a look at consumeradvice.scot