Page last updated at 06:00 GMT, Saturday, 14 March 2009

Warning over mobile phone scam

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One woman who was caught out by the scam

A mobile phone insurance scam affecting hundreds of people across the UK is being probed by Trading Standards.

The fraudsters target people with new phones and make them believe they are getting a call from the shop or the mobile phone network.

But after the consumer gives their payment details they end up with poor quality phone insurance or none at all.

Trading Standards is investigating 10 companies in Swansea and urging people not to give details to cold callers.

Those involved in the scam are thought to be buying phones and calling numbers similar to their own number until they find someone with a new phone.

Card details

One victim, Rebekah Swift, told BBC Radio 4's Money Box programme she was caught out when she bought an iPhone for her son's 17th birthday.

She said: "I took him to the Carphone Warehouse and bought him an iPhone and paid for some insurance.

"We came home and a few hours later his new phone rang and it was from some people who led him to believe they were from Carphone Warehouse.

"He came into the kitchen and he said they were offering a cheaper insurance deal and we thought that was great. I let him give my debit card details over the phone and thought nothing more of it.

"Then he received a text some while later from Carphone Warehouse warning him of an insurance scam going on and by that stage the money had already gone out of my account, and we'd been scammed."

Trading Standards says there has been a problem for the past 18 months, and that many of the companies are based in Swansea.

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