How Royal Mail rakes in millions betraying the elderly: Conmen's letters are delivered in bulk - but post bosses refuse to crack down 

  • Royal Mail accused of making millions from conmen who defraud elderly
  • Vulnerable victims are losing vast sums through letter frauds sent by post
  • Letters delivered under Royal Mail's bulk-mail contracts - they are branded
  • Postal service refuses to crack down on the letters despite many warnings 

Royal Mail is accused of making millions from conmen who defraud the elderly on a massive scale.

Vulnerable victims lose vast sums through letter frauds sent by post – delivered under Royal Mail's bulk-mail contracts.

It means the fraudsters behind the illegal letters get Royal Mail branding on their envelopes, making it easier to gain the trust of victims.

But despite repeated warnings about the scale of the fraud, the postal service refuses to crack down on the letters.

Royal Mail is accused of making millions from conmen who defraud the elderly in Britain on a massive scale. Vulnerable victims lose vast sums through letter frauds sent by post (pictured)

Royal Mail is accused of making millions from conmen who defraud the elderly in Britain on a massive scale. Vulnerable victims lose vast sums through letter frauds sent by post (pictured)

In a major undercover investigation, the international network of conmen – who make millions through their scams – were filmed laughing at their 'suggestible' and 'uneducated' victims over lavish dinners, oysters and champagne. The Daily Mail today reveals the scammers:

  • Call themselves a 'mafia' who 'rip off' elderly people;
  • Meet to swap 'suckers lists' of vulnerable victims at lavish conferences across the world, where they mock the 'lonely' and 'crazy' people who 'really believe' the letters they send;
  • Make millions by targeting confused victims who will send money for 'absolutely anything';
  • Admit their mailings are 'lying', 'fraud' and 'probably not' legal – but boast they always get away with it as the authorities 'don't really care';
  • Avoid UK authorities by using mailboxes in Switzerland and the Netherlands – and hiding money in offshore accounts.

Their letters include messages from fake clairvoyants, prize-draw scams and illegal advertisements for unlicensed health remedies.

Some persuade victims their families are trying to harm them and they need to send protection money – warning against telling those closest to them about the letters.

The findings raise serious questions for Royal Mail – which has been warned for more than a decade that elderly customers are at risk.

Campaigners last night accused Royal Mail of 'profiting from the criminal exploitation of the elderly' and said it was 'disgraceful' its logo was allowed to appear on fraudulent post.

Business Minister Margot James said she would be summoning Royal Mail to demand immediate action.

She said: 'I'd like to thank the Daily Mail for their work in highlighting this case. Mass-marketing scams target some of the most vulnerable people in the UK and should not be tolerated.'

Elderly Britons are thought to lose up to £5.8billion a year in postal scams – with dementia sufferers often falling victim.

One woman was 'brainwashed' into handing over £100,000. Often the issue remains hidden as victims are too afraid or ashamed to seek help.

'I'm passionate about my ability to whore my talent and sell this s*** to people who don't need it'. Canadian sweepstake scammer, Andrew John Thomas, said the victims 'get sucked in'

'I'm passionate about my ability to whore my talent and sell this s*** to people who don't need it'. Canadian sweepstake scammer, Andrew John Thomas, said the victims 'get sucked in'

Reaping the profits: Christian Limpach at the conference at the Whistler ski resort. The German said the letters are 'crazy' and 'very weird' but claims the aim of them is clear: 'To rip off the people.' Particularly 'females over 60', who are seen as the most vulnerable, he said

Reaping the profits: Christian Limpach at the conference at the Whistler ski resort. The German said the letters are 'crazy' and 'very weird' but claims the aim of them is clear: 'To rip off the people.' Particularly 'females over 60', who are seen as the most vulnerable, he said

Postmen told the Daily Mail they 'hated' being made to deliver the scam letters – but feared they would lose their jobs if they refused.

The scammers are even able to take advantage of Royal Mail's discounted bulk postage rates.

In a year-long investigation, the Daily Mail has traced a criminal network that makes millions in the UK in this way.

THE STAMP OF APPROVAL: HOW THE SCAM WORKS 

Criminals buy a 'suckers list' of elderly people who have fallen victim to scams, or are likely to. These lists are often from databases sold on by charities.

The criminals then produce scam letters to trick them out of more money.

Scammers employ a company – such as Netherlands-based TRENDS – to print millions of copies of their scam letter, identical except for the victims' details, and seal them in envelopes.

TRENDS pays postal giants such as Asendia to take the letters to the UK. Asendia does not ask or check the content of letters.

Asendia transports letters to the UK, and then contracts firms such as Whistl to sort the letters into postcode areas and put them into the Royal Mail system. Whistl agrees and does not ask or check what the content of the letters is.

Whistl delivers the sorted letters into Royal Mail regional sorting offices, from which Royal Mail postmen deliver the letters to victims in the UK – the 'final mile'. Royal Mail does not check with Whistl what the content of the letters is.

Vulnerable people in the UK receive the letters with Royal Mail branding on them and believe they are genuine.

They send cash and cheques back to the criminals' post boxes, which are managed by TRENDS.

TRENDS sends money to a payment processing firm such as PacNet.

PacNet processes the cheques and wires the money to the criminals.

All the vulnerable people who have fallen for the latest scam have their names recorded on a new 'suckers list'. The list is then traded around criminals.

As a result, they are quickly bombarded with more scams from criminals all over the world.

A spokesman for TRENDS said they were unable to comment for legal reasons. Asendia admitted it had held a contract with TRENDS but said it had no way of knowing the letters were scams. PacNet denies any wrongdoing and says it has never knowingly processed money generated by scams.

An undercover reporter went to a conference attended by the group in Canada where conmen bragged of 'reaping the profits' from 'ripping off' victims. One French scammer told our undercover reporter Royal Mail's logo helped him dupe 400,000 Britons into thinking the 'Government allows' their letters.

Yann Wenz said: 'It's better with Royal Mail than without. It's not right – but people are thinking that.'

Mr Wenz said his firm faced repeated problems with the UK's 'overprotecting' authorities. But he said: 'We want to stay [operating in the UK].'

Hundreds of scams get into the UK through the Royal Mail's bulk contract with postal firm Whistl, formerly TNT Post, which is worth hundreds of millions of pounds a year to Royal Mail.

Whistl is paid by firms such as Asendia to get bulk quantities of letters from abroad into Royal Mail's system.

Some of the scams that enter Britain through Whistl and Asendia have been banned in the US. The US Post Office said the letters were clearly 'criminal frauds' targeted at 'elderly and vulnerable victims'.

But Royal Mail claims it cannot act as it is legally obliged to deliver any addressed letter, including those from Whistl.

Some victims receive sacks of scam letters every week, marked with the Royal Mail's Whistl contract stamp.

Louise Baxter, of National Trading Standards, said the investigation showed how 'criminal scammers around the world' had 'manipulated the postal system'.

Marilyn Baldwin, of anti-scam charity Think Jessica, said: 'It is an utter disgrace. Elderly people are being preyed on by criminals through the post and yet the Royal Mail, Asendia and Whistl simply shrug their shoulders. These companies are profiting from the criminal exploitation of the elderly.'

And Baroness Altmann, former pensions minister and campaigner for the elderly, said 'It is shameful to allow the [Royal Mail] logo to be used by fraudsters. Urgent action needs to be taken.'

All postal firms involved said they abhorred scam mail but could not check what they were sending because of postal secrecy. They said they made it clear to their clients that illegal letters should not be sent.

Royal Mail said it took the Daily Mail's findings seriously, adding: 'Royal Mail does not knowingly distribute mail from fraudsters and we have terminated contracts where companies have been proven to be operating scam mail. We have contacted Whistl and other postal companies and asked them to review any suspect contracts as a matter of urgency.'

The letters are placed in the hands of their victims by trusted Royal Mail postmen and women. It is a practice the Royal Mail seems unable – or unwilling – to stop (file picture, posed)

The letters are placed in the hands of their victims by trusted Royal Mail postmen and women. It is a practice the Royal Mail seems unable – or unwilling – to stop (file picture, posed)

Whistl said it would 'investigate all scam mail brought to their attention' and it had brought the letters in from 'an intermediary' without knowing what they were or who the sender was. 'We have no ability to see the actual content of the mail items,' a spokesman said. 'We contract in good faith with our customers that their mailings are legal.'

Asendia admitted it had held a contract with the firm that printed millions of scam mailings on behalf of fraudsters. But a spokesman said it 'did not accept any responsibility for the mailings' passed to Whistl and other partners for delivery through Royal Mail.

Mr Wenz said his firm worked to stay on the right said of the law. A spokesman said the company denied wrongdoing and was appealing to the European Court to challenge its treatment by British authorities. 

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