It is estimated that tipster scams cost punters between £1 million and £4 million each year in the UK alone. Some companies charge premium tipping fees by claiming a superior track record of betting advice. However, bettors need to be cautious of inflated or fabricated figures designed to attract new customers. Reputable companies will keep accurate records of tipping activities.
Some scam artists provide different tips to different people in a race of a set number of horses. Such method guarantees that one person will win. The bettor who won could then assume that they received real insight into the race outcome and may pay future fees to the scam artist.
Scam artists often refer to themselves as “racing pundits,” telling potential customers that their tipping service provides a very high ratio of winners to runners, sometimes up to 90 per cent. Obviously, it is extremely difficult or impossible to obtain winning percentages that high. Punters should heed the old axiom that if it sounds too good to be true, it probably is.
Scammers may also encourage prospects to sign up by suggesting that there are only a limited number of places available for their exclusive service. However, such a bogus claim runs counter to marketplace economics. If a vendor has a great service that provides real value, it’s in their financial incentive to reach as many customers as they can.
Rip-off companies may also state that there is a ‘money back guarantee’ if punters aren't satisfied. However, it can be difficult or impossible to get refunds if and when the scam operation takes the money and simply disappears. Instead of an address, victims are often provided a mailbox without an ability to contact anyone at the company.
Other tipster scams offer a regular monthly income with ‘no financial risk’ if the consumer places bets on someone else’s behalf on horses which are ‘sure to win’. Consumers are told that if the horse wins they should send on the winnings but if it loses they will be refunded the bet. Often, victims lose their money without recourse due to their inability to contact the perpetrator.
Some victims are contacted by phone with the offer of investing in shares of a racehorse. After sending their money, the perpetrator claims that they will receive legal paperwork regarding the ownership but nothing arrives.
Follow this advice in order to avoid horse racing scams:
· Do not give your bank account details or any money.
· Do not listen to anyone claiming they know a ‘sure-fire’ racehorse that cannot lose.
· Be cautious of any tipster that operates using a PO Box Number, or who is very difficult to contact.
· Report suspicious operations or individuals to authorities in order to prevent possible crimes.