Data protection scams face clamp-down

The Federation of Small Business (FSB) has added its backing to a UK government campaign alerting small businesses to fraudulent data protection charges.

The FSB has highlighted one company, a Merseyside-based operation called Data Protection Agency Services.

The company has sent official looking letters to unsuspecting SMEs, claiming they need to pay £111 to register with the company in compliance with the Data Protection Act.

Small businesses processing data that falls under the Act actually need to register with the government-backed Information Commissioner, for an annual £35 fee.

A spokesman for the FSB said: "The difficulty is that there are a number of new rules and regulations, and a number of new bodies accrediting small businesses. It is difficult to keep abreast of things if you are a small business. [The fraud] is a symptom of a bigger bureaucratic issue."

The government recently launched a nationwide media campaign highlighting scams, and providing SMEs with accurate registration details.

The Trading Standards Institute has now launched an inquiry into the scam.