Two companies that scared their elderly victims into buying overpriced, ineffective security systems have been closed down

The glossy leaflets were filled with sinister images – the gloved hand of a burglar opening a window, a ransacked room, a shadowy figure standing outside a house – designed to frighten older people into buying burglar alarms. The message was: “Don’t become a crime statistic.” But SAS Fire & Security Systems, the company behind the leaflets, has now become an insolvency statistic after it was shut down for illegal practices.

SAS Fire and sister company Crime Research UK made millions of pounds by using scare tactics to sell burglar alarms, and was wound up eight days ago following an official investigation. The companies, both based in Cheshire, worked together to target people with false promotions and high-pressure sales tactics, and managed to rack up sales of more than £18m in just two-and-a-half years.

One of those glad to see the back of the firms is Guardian reader Phillida Inman, who was one of those targeted. The 72-year-old who lives alone in north London, paid £4,850 for a monitored alarm system, but had endless problems with it from day one.

During its probe, the Insolvency Service’s company investigations team unearthed a sophisticated operation designed to target pensioners. From its network of offices across the UK, SAS Fire sold alarm systems supposedly boasting continuous, remote monitoring and a rapid response service.

Cold-callers would ring people, claiming they had been chosen to receive one of a limited number of alarm systems for just £1. The phone call would be followed, usually within 24 hours, by a lengthy home visit by a sales rep. Some customers were encouraged to buy a monitoring and response package costing up to £6,000 for a 15-year contract in order to get the system for £1.

Customers were pressed to sign up there and then, and the alarm system would typically be installed within 48 hours – thereby limiting customers’ ability to exercise their statutory right to cancel the contract within seven days. To make matters worse, the companies “falsely gave the impression that their alarm system would be monitored or responded to by the police”, say officials.

They used inaccurate crime statistics as part of their sales patter to put customers “in fear of crime”, and falsely gave the impression that their alarms were endorsed by bodies such as the Home Office.

Phillida Inman had concerns almost immediately after being persuaded to sign up for one of SAS Fire’s alarm systems. So unreliable was it that she was eventually forced to have it removed. All her attempts to get the company to first resolve the problems, and then to get her money back, failed.

“I’m delighted this company has been wound up as I feel they were rogues from the start,” she said. “As soon as it was installed, it kept going off, and, of course, when I rang up to complain, they always claimed it was all my fault. The alarm went off so often that no one would be a key holder, and it soon emerged that no one actually came round if it went off.”

She says the final straw came when it kept going off one Saturday morning so she could not leave her flat: “When I rang the company’s so-called 24-hour monitor line, there was no answer until the office opened at 10am.”

She says she wrote to the company pointing out that it was in breach of contract and asking for her money back, but her letters were ignored.

Stephen Speed, chief executive of the Insolvency Service, says: “Our examination of SAS’s trading practices established their customers were, on average, 69 years old, and it was this targeting of potentially vulnerable customers that was a matter of particular concern. We found the company’s tactics were typical of those that prey on the elderly.”

He says the company used unacceptable methods to gain trust and entry into people’s homes and, once inside, the conduct of their salespeople breached consumer protection law.

“Any other company that uses illegal high-pressure sales tactics should be aware the Insolvency Service can and will investigate, and where appropriate, take action to remove them from the business environment,” he added. “Anyone who has been affected by the trading practices of this or similar companies can report them to our public interest team on 0161 234 8531.”

Helena Herklots at the charity Age UK (the new name for Age Concern and Help the Aged) says that people in later life can be an attractive target for companies using illegal sales tactics: “A reputable company will never force a customer into making an instant decision, and anyone who has concerns should not hesitate to ask a close relative or friend for their advice.”

Some victims will want to know why it took so long for the authorities to stop the companies. SAS Fire, based on Heaton Mersey Industrial Estate, Stockport, was the subject of enforcement action brought by North Lanarkshire Council in April 2009.

However, there were complaints about SAS Fire to Stockport trading standards some time before that. Over a period of more than a year from November 2008 onwards, officers repeatedly highlighted deficiencies in the company’s trading practices, but sought to remedy these “on a consensual basis”. Crime Research UK was based in Warrington.

A spokeswoman for the Insolvency Service says its investigations will now turn to what has happened to customers’ money and whether they can expect to see any of it returned.

Keeping con men at bay

SAS Fire & Security Systems isn’t the first home sales company to target older consumers. In January, Guardian Money revealed how several bogus firms had conned hundreds of Dyson vacuum cleaner owners.

We told how salespeople claiming to be from “official” Dyson repair firms used high-pressure tactics to sell people replacement parts they did not need. Some victims were also overcharged for poor-quality work.

Dyson said at the time it had identified 1,480 people who in the previous 12 months had found themselves conned into using a repair service from companies masquerading as its official engineers. It was thought there could well be many others who had not yet come forward.

Dodgy salesmen have long seen older people as a soft touch, but there is anecdotal evidence that the problem is getting worse. Retired pensioners are more likely to be at home during working hours, and are often less able to resist high-pressure salesmen, especially once they have got access to their home.

Older people are often vulnerable to having their gas, electricity and home phone service switched against their will after being visited by salesmen – Guardian Money has seen plenty of evidence of this.

With this in mind, Age UK has produced two free information guides, Avoiding Scams and Staying Safe, which warn people of the most common scams and provide practical steps to ensure older people are able to protect themselves against this type of crime.

It says older people can present an attractive target for crooks, not least because they are more likely to have easily accessible savings than younger people. Some older people are isolated and may not have anyone to turn to for advice. Also, it warns, the older generation may be less likely to have access to the internet as a checking tool, although this is increasingly less true.

The guides are available free of charge from Age UK Advice on 0800 169 65 65 or by visiting ageuk.org.uk/scams-advice.

Miles Brignall