FRAUD squad detectives today issued a warning to small businesses in North Yorkshire following a series of advertising scams.

Conmen claiming to be offering cheap advertising space on menus, desktop blotters and calendars are siphoning funds out of company accounts.

Believed to be operating from outside the county, they have targeted a number of businesses in York in recent weeks.

Detective Constable Ian Illingworth, of North Yorkshire police's fraud squad, said: "This leaves your bank account wide open and the perpetrators could potentially take all the money that is in your account."

DC Illingworth said the fraudsters cold-call or send letters to businesses offering advertising space for a nominal fee.

When a cheque is sent out, the bank details are copied and used to fill in Direct Debit standing order mandates which are then used to withdraw money from accounts.

Despite the blatant nature of the scam, fraud squad officers believe may of these transactions could be overlooked by business people pushed for money and time.

DC Illingworth advised that while there were legitimate firms operating in this way, businesses should be wary when dealing with companies they had not heard of.

"Check them out and see if anyone can recommend them. Use common sense and remember that if it sounds too good to be true, it probably is," he said.

Mandy Melka, North Yorkshire regional organiser for the Federation of Small Businesses, said this was just one of many scams targeting local firms. She said others included "Euro City Guides" which look like a free directory, but the small print demands payment.

And other conmen send out invoices for advertising which has not been used in the hope the bill will be paid without being checked.

She said: "The majority of small businesses have so much paperwork and red tape to deal with that you tend not to read everything."

Updated: 11:09 Saturday, April 21, 2001