People who fall victim to the increasingly common scams, which include cold callers offering cut-price spray foam insulation in lofts, are being left thousands of pounds out of pocket.

Shocking examples include a couple from Midlothian who lost almost £11,000 after agreeing to have their loft insulated with spray foam and a man from North Lanarkshire who lost £19,000.

Trading Standards Scotland (TSS) figures show that as of mid-December 2023, 158 complaints had been received from Scottish consumers about insulation scams, a rise of 42 per cent on 2022’s total of 111. In 2021 there were only 66 complaints.

It estimates that Scottish homeowners have lost a total of £500,000 to insulation scams in 2023 alone, with an average cost of between £4,000 and £8,000 per consumer. In 2022 almost £4.5 million was lost by Scottish consumers to energy efficiency scams.

The advice from TSS is never to engage with cold callers offering ‘free’ loft or roof surveys, and never accept the information they offer without doing independent research. Homeowners are also being urged to consult with a mortgage adviser regulated by the Financial Conduct Authority before having spray foam insulation installed.

TSS is also urging people to check in with their older relatives to ensure that they do not fall victim to similar scams. The organisation said cold callers are taking advantage of people who are keen to make their homes more energy efficient, giving them misleading information about the benefits of spray foam. The product is typically used to insulate roofs, lofts and attics, but can often cause problems in properties with timber-framed roofs.

If incorrectly installed or used inappropriately, it can reduce air circulation and ventilation, leading to damp and potentially rot. It can also be extremely difficult and costly to remove, at around £3,200 for a three-bed detached house. Due to the potential risk of harm to the property, some mortgage lenders are also unwilling to offer a loan or equity release to homeowners who have installed spray foam until it is removed.

TSS said scammers operating within Scotland were cold calling customers – often targeting older people – with the promise of a free loft survey.

Once through the door, a ‘surveyor’ inspects the loft and declares that they have detected damp or mould, before claiming this can be rectified through the installation of spray foam.

In one particularly shocking example, a customer in North Lanarkshire paid a company £9,000 to have spray foam installed in his loft in January 2023. He later discovered not only that he had been massively overcharged, but that the product had been faultily installed so it blocked ventilation points, potentially leading to his roof rotting. He is now facing a bill of £10,000 to have the foam removed and is seeking to recover the costs through his bank.

Councillor Maureen Chalmers, chair of Trading Standards Scotland’s governance board, said: “Dishonest traders and companies are attempting to exploit the cost-of-living crisis and are targeting those who want to make their homes more energy efficient, providing misleading information about products and implying that funding or grants are available for their products.

“We strongly advise homeowners to consult with a mortgage adviser who is regulated by the Financial Conduct Authority before having spray foam insulation installed.

“Don’t engage with cold callers offering ‘free’ loft or roof surveys and never accept information offered from these sources without doing independent research, particularly if they tell you that there are grants or funding schemes available.

“Before agreeing to have any work done, have an impartial assessment carried out on your home to find out which energy efficiency measures will actually be beneficial to your property. Don’t agree to get an assessment done by a company who cold calls you – they will not be impartial.

“We would also ask people to look out for family members, friends and neighbours who may be vulnerable and to report any suspicious behaviour to Police Scotland.”

Minister for community wealth, Tom Arthur MSP, added: “Scams do enormous damage to our economy and to individuals, particularly the most vulnerable. The Scottish Government is fully committed to doing everything possible to protect consumers and hammer scammers.

“We strongly encourage people not to accept offers from cold callers without first seeking expert advice from trusted sources, such as the Scottish Government’s Home Energy Scotland service.

“We continue to engage with members of the public and the media to raise awareness of scams and promote scams awareness campaigns. Last year, I joined Trading Standards Scotland in launching their brightly coloured ‘scams van’. Initiatives like that are crucial when people are already struggling with the cost-of-living crisis and higher energy bills.”