Consumer complaints about scams are to be handled by a new team of investigators set up by the Office of Fair Trading (OFT). 

It is estimated that UK consumers lose up to £1 billion per year to a variety of scams. These include bogus prize draws and lotteries, premium-rate prize promotions, psychic mailings and miracle health cures.

The consumer watchdog's 'scambusters' team brings together two departments within the organisation – one dealing with misleading advertising and the other with international scams. The aim is stamp out the most prevalent and widespread scams aimed at UK consumers.

While the OFT doesn't have the powers to get consumers their money back, its powers and work with other organisations means it can help shut down fraudsters, disrupt their operations and help get these criminals arrested.

Christine Wade, Director of Consumer Regulation Enforcement, said:"Scams are big business. The OFT's new team will target deceptive schemes that exploit consumer vulnerabilities to con people out of their money"

The 10-member strong team will liaise with members of another new OFT initiative, the Scams Enforcement Group (SEG). This group will bring together law enforcement agencies, private and regulatory organisations, both in the UK and overseas.

These organisations include the National Criminal Intelligence Service (NCIS), Royal Canadian Mounted Police, UK trading standards, local authorities and the Department of Trade and Industry Companies Investigation branch.

Over the next three years this group will develop the work the OFT is currently carrying out as well as exchange information with other organisations on scams both in the UK and abroad. It will also coordinate action to bring the fraudsters to justice.

If a consumer feels they have fallen victim to one of these scams, the OFT said they should initially report an incident either to it or their local trading standards office.