MEP Simon Busuttil has called on the business community and non-governmental organisations to be vigilant against business directory scams following several media reports that scams have resumed their fraudulent operations.
Business directory scams mostly target small businesses but also non-profit entities such as schools, libraries and even band clubs.
The scam relies on misleading information sent out by mail, giving businesses the impression that their details would be listed in a business directory free of charge.
Subsequently, those who sign up discover that they have been conned into costly contracts costing them some €3,000 over three years.
The scheme takes advantage of loopholes in the laws which make it difficult for national authorities in EU states to take action since they do not have the authority to act across European borders.
As a result, misleading business directories have been sending out offers in various EU states and have also moved their operations from one member state to another.
Dr Busuttil said he received a great deal of complaints from people who fell victim to these scams in several EU countries.
Most singled out the directory known as “European City Guide” but others complained about “Construct Data Verlag”, “Deutscher Adressdienst GmbH” and “Nova Channel”.
"Business scams are still ongoing and we need to prevent people from falling victims in the first place. The best policy is to be vigilant so as not to be caught unawares. People receiving offers which appear free-of-charge should be cautious as there may be a catch. They should not sign up to an offer unless they are sure of the conditions," he said.
Dr Busuttil had prepared a report for the European Parliament which marked an important step in combating scams.
The report was adopted last year and has been distributed widely in Europe. Recently, Dr Busuttil followed up his report with parliamentary questions to the Council of Ministers and the European Commission. He is calling on the European Commission to do more on the matter.