A SCAM involving data protection registration has reared its ugly head again in Waltham Forest and a businessman is worried that tricksters may be targeting the area.

A company has written to a small borough firm offering to register it with the Information Commissioner at a cost of £95. But it costs only £35 to register directly with the commissioner.

Businesses have been taken in by the companies before handing over cash for fear of being prosecuted, which the companies warn would cost up to £5,000.

The Guardian received a letter from a local businessman last week saying he had been approached by con artists and had contacted Walthamstow Citizens Advice Bureau (CAB) which confirmed it was a scam.

He said: "Warn people, especially those self-employed or sole traders, to be aware, they may be targeting the Waltham Forest area again."

A copy of the letter he received, entitled Data Collection Services, was passed on to the Guardian. It was sent by a company called DCS (Data Collection Services of Larkhill House, 146-150 Queens Drive, Clubmoor) which highlighted that it was a criminal offence if businesses did not sign up with the commissioner.

One of the cases drawn to our attention previously was that of Walthamstow businessman Jason Lennick, who was almost fooled into parting with £117 in an identical scam.

He received a letter in 2002 from a company called Data Protection Agency Registration Services Ltd, which informed him he could be liable to heavy fines unless he paid.

Mr Lennick, a partner in Metacosm Web Design in Hatherley Mews at the time, said it was only his suspicious nature that alerted him to the scam.

The Information Commissioner's website has a list of companies to avoid and advises people to contact Trading Standards if they receive such letters. DCR is on that list.

For information on data protection registration visit www.dpr.gov.uk