Beware bogus agencies, firms warned

Businesses have been reminded to be wary of bogus organisations demanding money after two men were ordered to pay back thousands of pounds obtained from companies through a fake data protection agency.

Between January and May 2004, Mohammed Arshid Khatana and James Stuart posed as the Data Protection Agency (DPA) and demanded from businesses a payment of either £95 or £135 to register under the Data Protection Act.

The actual statutory fee for notification is just £35 a year and businesses must register via the Information Commissioner's Office (ICO).

During a hearing at Burnley Crown Court, Khatana and Stuart were ordered to pay back £473,076 and £19,625 respectively.

Simon Entwisle, ICO chief operating officers, said: "This ruling should serve as a severe warning and deterrent to other bogus agencies that are trying to rip off British companies.

"If a business receives a letter out of the blue demanding more than £35 to register under the DPA this will be a scam. Our simple message to businessmen is to throw the letter in the bin and not to pay the fee demanded."

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