THOUSANDS of residents across the South have been conned in one of the UK's biggest-ever work-from-home scams, it emerged today.

Police said three people, thought to be behind some of companies that offer money-spinning "home-working" schemes, have been arrested on suspicion of swindling householders out of a total of about £500,000 in just two years.

Trading standards and police have launched a massive investigation into the alleged racket, which has targeted some of the most vulnerable members of society.

The firms invite people who want to earn cash from home to ring a helpline and part with up to £35 registration fees.

Unaware that the number they phone costs £1-a-minute, victims listen to a recorded message that warns against scams but offers no work.

Disabled widow Shirley Lynham, from Southampton, said she was duped but that others could lose even more money by continuing to ring the phone lines.

The 59-year-old grandmother, of Burgess Road, Swaythling, said: "I could have done with the extra money of earning from home. It is an absolute disgrace that vulnerable people can be taken in by this.

"They wrote to me out of the blue and it all seemed genuine."

Jean McGill, 42, from Lyndhurst, said she paid £35 to register but got nothing for her money. She said: "When I phoned their number, it was a recorded message that spouted absolute rubbish and I did not know how much it was costing me."

The arrests follow a fraud squad raid at the premises of RA Enterprises in Birtley, Durham, and two private homes there.

Mark Dron, senior enforcement officer at City of Westminster trading standards which has received hundreds of complaints from across the South, said: "This is a nationwide problem involving many thousands of people.

"We reckon that in the last two years these businesses which are all associated with RA Enterprises have made about £500,000 from registration fees and premium-rate phone lines.

"It is one of the most well-orchestrated and biggest scams I have ever come across.

"It is very unpleasant - they target vulnerable, housebound people, such as single mothers and the disabled, because those are the groups that most want to work from home.''

Dc Tim Lerner, from Durham police, said the company was believed to have direct ties with six other similar operations, including Westcliffe Associates in Bournemouth, and that the home-working schemes targeted people across the UK.

He said: "Police forces and trading standards officials around the country have already received official complaints about the activities of these seven companies. We want people to be aware of what is happening and be on their guard."

Two men, aged 30 and 23, and a 32-year-old woman have been arrested on suspicion of obtaining money by deception.

Premium-rate phone watchdog ICSTIS is also investigating RA Enterprises. A spokesman said a service provider the firm used, Odyssey Systems, had been fined £10,000 for breaches of its code, including failing to inform customers of call costs.

A Southampton trading standards spokesman said people should beware of home-working schemes where firms asked for a registration fee before any work was given and whose helplines began with the premium-rate line prefix 090.

He said that to avoid being conned, anyone interested in working from home should approach firms to find out if they offered schemes, speak to home-workers and enquire at job centres.

Anyone who believes they have lost cash to the companies is asked to write to Durham police's fraud squad at Aykley Heads, Durham City, including copies of relevant documents.

Attempts by the Daily Echo to contact RA Enterprises failed.

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