Thousands of UK Scam Victims Set to Receive Cash Payouts
More than 3,500 UK victims of a massive international mail scam are finally getting paid back. Over £530,000 has been recovered thanks to a four-year joint probe by National Trading Standards (NTS) and the US Federal Trade Commission (FTC).
How the Scam Worked
The scam targeted UK households with personalised letters promising ‘guaranteed’ cash prizes. But victims had to pay upfront fees between £25 and £40 to claim their winnings. Many paid multiple times before realising they’d been duped. The scam mainly hit vulnerable groups, including older people living alone and those with long-term health issues.
Over seven million scam letters were sent to UK addresses from 2014 to 2018. Some lost thousands before the truth came out.
Behind the Scam: A US Criminal Ring Exposed
The NTS investigation traced the scam to a gang based in Kansas, USA. The team fingered Kevin Brandes, William Graham, and Charles Floyd Anderson, who ran the ‘Next Gen’ sweepstakes scam and a fake classic car sales business. They flooded the globe with tens of millions of bogus prize mailers and kept millions in bank accounts.
In 2018, under pressure from US authorities, the criminals agreed to forfeit $30 million. Of this, $25 million was set aside for victim compensation worldwide.
Payback at Last: Cards for Compensation
The UK’s National Trading Standards, lauded by the US Attorney General, now leads the first-ever cross-border payout scheme. Victims will get pre-loaded compensation cards, usable in shops or for bank deposits, distributed locally through trading standards offices.
Louise Baxter, Head of NTS Scams Team, said: “Today is a major milestone after four years of hard work. We know how devastating scams can be, so it’s brilliant to turn crime proceeds into cash for victims, with help from trading standards officers across the UK.
Working with the FTC has been a game-changer. This international model could be used again to bring crooks to justice and help victims.”
Samuel Levine, Director at the FTC, added: “We value the support from NTS and partners worldwide. Their help was key to winning this case and making sure victims get refunds.”
Spotting a Scam? Here’s What to Do
- If you suspect you’ve received scam mail, report it immediately to your bank.
- Contact Action Fraud on 0300 123 2040.
- For free advice, ring Citizens Advice Consumer Service at 0808 223 1133.
