Sheffield scam victims get share of multi-million pound pay out following landmark investigation

A total of 22 people from Sheffield scammed by a Kansas, USA, based criminal enterprise are due compensation following a high-profile investigation.

Those affected in Sheffield are entitled to a share of more than £2,300 from a $25 million pay out.

Kaye Fox, interim principal officer at Sheffield Trading Standards, said: “Being scammed can have a huge emotional impact on victims and mail fraud represents a persistent threat particularly to vulnerable and elderly people.”

The scam busted

US fraudsters targeted UK households with scam mail offering a so-called “Next Gen” sweepstakes scheme with “guaranteed” cash prize pay-outs.

Tens of millions of deceptive personalised emails were sent to vulnerable people around the world between 2014 and 2017 asking them for an upfront fee ranging from £25 to £40. Many paid the fee several times before realising there was no prize. The highest individual losses in the UK ran into thousands of pounds.

A lengthy landmark investigation followed which saw National Trading Standards team up with the US Federal Trade Commission.

Action was taken in 2018 against the three individuals responsible and they forfeited $30 million in cash and assets – of this, $25 million was made available to compensate victims around the world.

How much Sheffielders will get and how they can claim it

More than £530,000 will be returned to more than three and a half thousand victims across the country in what is said to be the first compensation scheme across international borders in the UK.

Those affected in Sheffield are entitled to a shared total of £2,377.65.

Of the Sheffielders affected, eight died and only four have been contactable by the council.

If contact is made, Sheffield Trading Standards will arrange a personal visit to issue the refund on a pre-loaded credit card which can be spent in shops or paid into bank accounts. They will also provide advice and tips on how to avoid falling foul of these criminals in the future.

Councillor Joe Otten, chair of the waste and streetscene committee at the council, urged people to seek advice and support to make the right choices before entering transactions or giving details to anyone.

He said: “Our Trading Standards teams work really hard to prevent scams and fraudsters preying on vulnerable people in the city, but when those criminals are overseas it’s even more challenging.

“This is a brilliant example of partnership working across national and international agencies, leading to a great result, but we wouldn’t be able to support investigations like this without information from victims.

“We know that people who’ve been scammed often find it difficult to talk about – but there is no shame in being scammed. The more intelligence we can gather, the more people we can help and the more we can put a stop to it, so please report it if it happens to you.

“Targeting elderly and vulnerable people is unacceptable and we’re saddened that some of the people affected in this case are unable to see this outcome and get their money back.”

If you suspect fraudulent activity, contact Trading Standards on 0808 223 2233 or at [email protected].