Small businesses have been warned to be on the look out for a scam relating to the Data Protection Act.
The Forum of Private Business (FPB) warns that a number of agencies have been contacting businesses requesting up to £135 to register under the Data Protection Act.
The bodies claim to be linked the government but in fact have no ties with any department.
According to the FPB the letters, which often use threatening language, are are written on official-looking note paper.
The statutory fee for notification is just £35 a year and any organisation receiving a letter asking for more than this should "throw it in the bin", the FPB stated.
Recently it was announced that the Information Commissioner's Office is to be granted powers to crack down on firms that mishandle information.
The body will be able issue fines to institutions which it finds have deliberately or recklessly lost data.
