A bogus e-mail offering recipients a cash grant is using the name of the authorities that tackle scams and suggests that 'Trading Standards Central UK' is giving out £1m in total a year in donations to 100 international recipients.

The real Trading Standards Central is a website run by the Trading Standards Institute (TSI), offering advice to consumers and businesses; it has no connection with this e-mail.

Ironically, Trading Standards is the main agency collating information and warning local people about such scams.

TSI chief executive Ron Gainsford commented: "It is particularly galling to find they are prepared to take in vain the name of an organisation which works to protect consumers and businesses from scams and unfair practice."

TSI is working with the police and the Office of Fair Trading to locate the source of the e-mails.

Dave Roderick, Trading Standards manager for North Lanarkshire Council said: "The purpose of such scams is either to get you part with money for spurious 'arrangement fees' or to get hold of items such as bank account details to aid identity theft.

"We know of many people who have lost lots of money by replying to such correspondence. The best thing to do with such an e-mail is press the delete button".

Harold Meiehofer, secretary of the Scottish branch of the Trading Standards Institute commented: "I am sure that our members will be very angry about this.

"The trading standards profession has a justified reputation for promoting fair dealing and this scam seeks to exploit our good name."

Dave Roderick added: "Any traders who suspect that they are being targeted for whatever reason can contact their local Trading Standards office for free and confidential advice and guidance."

Local Trading Standards contacts are Coatbridge (for north of the M8), tel. 01236 812250 or Motherwell (for south of the M8), tel. 01698 332645.