BUSINESSES in Hampshire are being warned not to fall for a money-making scam run by a data protection company.

Hundreds of firms have been targeted across the county by Data Protection Agency Services which has sent out letters demanding a £95 payment to register under the Data Protection Act.

However, only businesses that process personal data on a computer system need to register. They can do so at a cost of £35 direct with the government's information commissioner.

The scam means Data Protection Agency Services pockets £60 every time a company decides to register by acting as an unnecessary middleman.

Sukhdev Raj, manager of AV World in Fareham's West Street, received one of the official looking letters but grew suspicious when he realised no contact telephone numbers were given.

"The letter is written in quite a threatening way saying that if you fail to send the fee back you will be committing a criminal offence," he said.

"But while it looks as if it's official, there is no telephone number. Cheques have to be made payable to DPA which could stand for anything."

Lisa Hall, business information manager at Southampton and Fareham Chamber of Commerce, said she had been contacted by 22 concerned businesses including consultancy, shipping and engineering firms.

She said three separate data protection agencies had contacted Hampshire businesses.

Trading standards officers at Hampshire County Council have received up to ten calls a day over the last few weeks from targeted

businesses.

Jon Whale, trading standards manager, said: "While it is not illegal to provide a private registration service to business data controllers, it is clear that many companies could unwittingly be paying for an unnecessary gold-plating service."

The government office of the information commissioner is unable to take action against the firms because they are passing the £35 fee on to the registering authority.

Information commissioner Richard Thomas said: "Our simple message to businesses is to ignore these letters and not to pay the fee demanded."

Any businesses who are confused about whether they should register should log on to www.informationcommissioner.gov.uk.

No one was available from Data Protection Agency Services, based in Sheffield, for comment.