Fraudsters are cashing in on the wave of payment protection insurance (PPI) mis-selling cases by falsely charging customers to settle claims, then disappearing with the cash.

Alan Shuter, 54, of Swindon, paid £150 to one company that told him they could help him claim back thousands of pounds for mis-sold PPI payments, according to reports.

The company promised they would send a courier round with the PPI settlement cash.

However, the 'ghost' claims farmers never sent a courier and the company even asked Shuter for more money. He tipped off Trading Standards after he became wary.

Shuter never got any of the PPI money he was promised, and could not get any of his payments back from the company.

When he tried to call the telephone number they gave him, it did not work.

Wiltshire Police sent out a warning this month after a pensioner was conned out of more than £8000 when a company told him he had been mis-sold PPI, the Swindon Advertiser says.

The 'ghost' claims farmers are similar to the 'ghost' brokers, who pretend to place a claim and then disappear with the money.