Consumers struggling to pay bills over the festive season have been urged not to sign up with companies that offer money in exchange for personal details in order to open multiple betting accounts in their name.
Fraud prevention and consumer specialists raised the alarm after the Guardian highlighted one such company, Kent-based Moneyful Ltd, which promoted the chance to make “easy money” over the festive period.
The company, which claims that customers have “made thousands” by using its service, asks users to upload their ID documents, such as a driving licence and proof of address. According to its terms and conditions, it can then use the documents to open accounts with bookmakers.
The company’s website says it asks customers to order a visa debit card, which it can then use to deposit funds into the accounts it creates. In exchange, Moneyful pays customers £100, as well as up to £100 each time they refer the service to another user.
The company claims that it uses “sophisticated software” to make money from the betting accounts it opens.
Information provided during the sign-up process suggests that Moneyful may be using the accounts to engage in “matched betting”, a way of making money from bookmakers by capitalising on bonuses and incentives such as free bets, exploiting differences between various companies’ offers.
The practice is not illegal but bookmakers are quick to crack down on matched betting – or a similar technique known as “bonus abuse” – if they become aware of it.
Sources in the gambling industry said that, while Moneyful’s website appeared to be the most prominent, other individuals and companies were operating similar business models, including via social media.
In promotional materials on Facebook, Moneyful touts its service as a way to “fund your festivities”, have a “financially merry Christmas” and “deck the halls with extra cash”.
But experts said customers should be very wary of handing over ID details to companies or individuals offering to open betting accounts in their name, or to anyone offering to buy a betting account.
Cifas, a financial risk advisory group, said it could not comment on individual companies but warned consumers to be wary of “passive income” offers.
“Consumers need to be careful of websites providing ways to ‘get rich quick’ or offers that seem too good to be true,” said its director of communications, Simon Miller.
“Adverts for ‘passive income’ and high rates of return in exchange for your personal details should be seen as red flags.
“If you are being asked to hand over sensitive information, we would urge consumers to stop and think, and get a second opinion from someone you trust wherever possible.”
The website of the Gambling Commission, which regulates the betting and gaming sector, specifically warns against allowing a third party to use your details for gambling.
In response, lawyers for Moneyful said it was “perfectly fair to say that there are risks in handing personal data to any organisation” but insisted all of the company’s practices were above board.
safter newsletter promotion
“No efforts whatsoever have been made to hide anything from the public. Our client pays corporation tax and is registered for VAT. It has a Trustpilot score of 4.3 on the basis of 67 reviews (and is consequently categorised as ‘excellent’).”
Regarding the term “passive income”, the company said there was nothing contentious about it, adding: “A stocks and shares Isa is a form of passive income.”
Sam Richardson, the deputy editor of consumer publication Which? Money, said potential customers of companies offering to pay to use customers’ bookmaking accounts should be cautious.
“[This] seemingly ‘easy’ way of making money will appeal to lots of people – but extreme caution is advised,” he said. “We would not recommend people handing over personal information […] to unfamiliar firms that can spend money on your behalf.
“Anybody who does want to sign up to this agreement should discuss it with their bank first to ensure it is not in conflict with any of the bank’s terms and conditions.”
As well as companies such as Moneyful, the Guardian has reviewed accounts on social media such as Instagram and Reddit – as well as on the messaging app Telegram – that offer to buy or sell betting accounts.
Professional gamblers, or those using techniques banned by betting firms, often have their accounts shut down.
Buying a “clean” account can be used as a method of bypassing restrictions imposed by gambling companies.
