Where I live is by no means a large city or a city known to the modeling industry. Here, the only "model scouts" are people who run little studios for kids to learn to model. They hand out flyers in the mall to parents saying "wow, your child is so gorgeous she could be a model!!" And they charge for modeling classes. That is likely how they make all their money. They compile a portfolio for the kid, and it usually ends up being a little keepsake. Sometimes the kids get cast into local ads or for flyers for local retailers, but I have never heard of a single one getting any farther than that. That's not to say there's no supermodels from around here. I know of one who came from a town just an hour away and she's quite popular, though I don't think she got her start at one of these little studios, but you never know.
My cousin's mom put her in one of those modeling schools so that's the only way I know about it. I would be wary if they want you to give them money for training or something like that.