Each year UK consumers lose £3.5 billion to scams with the average victim losing £850. The OFT has identified older consumers as more likely to be targeted by a scam but people of all ages can be caught out.

Common scams to be wary of include: bogus lotteries, deceptive prize draws and fake psychics. Scammers are also likely to prey on people wanting to slim down with miracle slimming products. The repercussions can be devastating with many victims suffering depression, low self-esteem and their confidence destroyed.

Mike Haley, Head of Consumer Protection at the OFT said: ‘Christmas is special time of the year but unfortunately it is also a period when many people feel under financial and emotional pressure. It’s also an opportune time for would-be scammers to prey on people’s vulnerability with bogus prize, gift and cash offers.’

Gordon Lishman, Director General of Age Concern, said: ‘Many people feel they could never be scammed, however millions become victims. People of any age be conned, but unfortunately unscrupulous fraudsters often target older people. The best defence is to know what to look out for, and always remember that if it sounds too good to be true it almost certainly is.’

Here are the OFT’s top 10 tips to avoid being scammed:

1. Be suspicious of unsolicited letters, phone calls, or emails asking you to send money – check out the sender and ask the opinion of family, friends or neighbours

2. If an offer looks too good to be true, it probably is – trust your gut instincts

3. Always think twice – ask yourself ‘can I afford to lose money on this?’

4. Never send money to anyone who say’s you’ve won the lottery or a big prize – you’ll never see your promised winnings

5. Don’t be rushed into sending off money by time sensitive deadlines

6. Never ring an 090 number unless you’re certain how much the call will cost and know what you are likely to receive

7. Never disclose your bank account, credit card or personal details to people you don’t know

8. Don’t send money off just because a letter seems official. Scammers often use this trick. If you haven’t heard of them check them out before taking any action.

9. Scammers often use fake testimonials to support their claims but don’t let them fool you – make your own mind up.

10. Don’t suffer scams in silence, get help! Contact Consumer Direct.