Something phishy
AS FRAUDSTERS TURN THEIR ATTENTION TO TARGETING CONSUMERS DIRECTLY, WHAT ARE THE HALLMARKS OF A SCAM? VICKY SHAW FINDS OUT
NEW figures show that the proportion of financial fraud being prevented has fallen. Around £6.40 in every £10 of attempted fraud was stopped in 2016, representing incidents being detected and prevented by banks and card companies.
The proportion of prevented fraud has edged down from £7.01 in every £10 in 2015.
The figures come from Financial Fraud Action UK (FFA UK), which fights fraud on behalf of the payments industry.
WHAT’S BEHIND THE DECREASE?
FFA UK says this is largely due to criminals shifting their tactics to methods which firms are less able to prevent themselves. Instead, they’re using scams to target consumers directly.
If the scams are successful, this can result in the victim inadvertently handing over their personal details such as their password or pin directly to a fraudster, or even transferring money straight into a criminal’s bank account.
SO HOW DO CRIMINALS GO ABOUT THESE SCAMS?
UNSOLICITED emails, texts and phone calls purporting to be from a legitimate organisation are common methods used – and many may be hard to distinguish from the real thing. Intelligence seen by FFA UK suggests that, in particular, criminals are increasingly using “phishing” emails which appear to be from major retailers or internet companies which many people are likely to use. People responding to these emails can be tricked into giving away their details, or into downloading malware. Old-fashioned distraction thefts and card entrapments at ATMs are also something to watch out for. Sometimes people are phoned out of the blue by a fraudster pretending to be from a legitimate organisation such as a bank or the police and persuaded to transfer money into a “safe” bank account after being told that their existing account has been compromised. The new account in fact belongs to the fraudster.
WHAT ARE THE SCAMS MOST LIKELY TO CATCH PEOPLE OUT?
AS the industry works to warn people about scams, NatWest has released a list of common scams which its customers have been caught out by. The top five are:
1. Goods not received – You pay for goods or services, but they never turn up.
2. Advance fee fraud – You’re asked to pay up-front payments for goods, services or financial gains that do not materialise.
3. Spoof payment requests – Someone supposedly senior in a company or a client, makes a request for money.
4. Invoice fraud – You are tricked into believing an invoice is from a trusted trading partner, when it is in fact from a fraudster.
5. Holiday scam – You book a holiday, usually online, to find out it does not exist.
WHAT IS THE INDUSTRY DOING TO COMBAT SCAMS?
INITIATIVES include a national awareness drive led by FFA UK called Take Five, which encourages people to pause for thought before handing over something like their personal details or money (takefive-stopfraud.org.uk).
National Trading Standards also has a campaign called Friends Against Scams. You can find out more information at www.friendsagainstscams.org.uk.
And HSBC also recently outlined plans to become a more “dementia-friendly” bank by improving products and services.
A guide to help customers living with the condition and those who support them is being piloted in 10 HSBC branches, giving tips on keeping track of spending and protecting against fraud.