How to spot a scam before it’s too late
With scammers using impersonation tricks to fleece victims for millions, here’s how to spot a con
SCAMS which involve impersonation are big business for crooks – £134million was stolen using this method last year.
A big chunk – £84.1million – of this total was lost to scams where thieves impersonated banks or the police, a 49 per cent increase on the previous year.
Meanwhile, £50.2million was nicked by thieves impersonating bill providers or government departments.
Latest figures show £7million has been lost through Covid-19 scams in the past few months.
Det Chief Insp Gary Robinson, head of the Dedicated Card and Payment Crime Unit, said: “Criminals are cynically preying on those with financial concerns at this time of national crisis. They are experts at impersonating other organisations, whether it’s your bank, mobile phone network or a government department.
“For these criminals it is a fulltime profession, they might spend weeks researching you but only need you to let your guard down for a minute. It’s like actors rehearsing for a play, everything they do is designed to make them sound genuine and convince you to make a payment or give away your personal and financial details.”
The banking industry is doing its best to try to stop crooks in their tracks but we all need to be on our guard as criminals change tactics.
Katy Worobec, managing director of economic crime at industry body UK Finance, said: “The banking industry is constantly sharing intelligence between banks and with law enforcement to help detect coronavirus scams and the gangs responsible. It’s vital we work together to beat them.”
Here are the latest scams and tips to help you keep safe.
WHAT ARE THE SCAMS? Transfer money to a ‘safe’ account
Roy received a call from someone claiming to be from his bank’s fraud team inquiring about suspicious payments on his account which he didn’t recognise. He was told his account had been compromised and he urgently needed to move money into a “safe” account to protect it. Roy did – and transferred his entire savings into an account which belonged to the criminal.
TIP 1: A bank or other financial firm would never ask you to move money to a safe account.
TIP 2: If you believe you’ve fallen for a scam, contact your bank immediately on a number you know to be correct – the one on your statement, its website, or the back of your debit or credit card.
Problems with your internet connection
Leanne was called by an “employee” from her broadband provider who said her internet router had been hacked. The caller asked for remote access to Leanne’s computer and said she would receive £500 as compensation.
Leanne provided her bank details and was told to log on to her online banking to check the money had been received. However, £5000, not £500, was deposited and she was asked to refund the overpayment to another account. By then, the criminal had taken control of all her accounts and the £5000 deposit was in fact money moved from Leanne’s other accounts.
TIP: Don’t give someone remote access to your computer. Call the official number of the organisation to check if the original caller is genuine. Never log on to online banking while someone has acceSS to your machine.
Police impersonation
Damon was contacted by a “police officer” claiming that staff at his local bank branch were issuing counterfeit notes and his assistance was needed in an undercover operation.
He was told to make a large withdrawal from his account and to hand it over to the police for “analysis”. He was told he would receive his money back after the investigation.
Once Damon’s money was handed over, the “police officer” disappeared.
TIP: The police would not contact you to ask you to take money out of your account for an undercover inquiry.
Caller said he needed remote access to Leanne’s computer and offered £500
Emails and text messages
Sam received an email from a government department, informing him he could claim financial help if he clicked on a
link. When Sam clicked the link, he was directed to a fake website designed to look like that of the genuine organisation, but which was actually collecting his personal and financial information. Sam failed to receive a payment and was also unaware that his computer was infected with malware after clicking on the link.
TIP 1: If you receive an email, text or WhatsApp message purporting to be from the Government, HMRC, the World Health Organisation or a coronavirus-related charity, take a moment to think before you part with your money or information.
TIP 2: Never click on links or download attachments as criminals may infect your devices with malware or ask you to enter your personal or financial information into fake websites. In some cases this can lead to your identity being stolen.
Phone calls
Leon thought he was buying face masks and hand sanitisers that were sold out everywhere else.
However, after completing his purchase, he failed to receive his order and his money was lost.
TIP: If you receive a call offering you protective face masks, hand sanitiser, testing kits, medicine or miracle cures, be aware they may not be genuine. Don’t be afraid to refuse, reject or ignore calls.
Social media posts
Steve saw an advertisement from a stockbroking firm claiming that due to coronavirus, investments weren’t making the profits they could be. It said moving his investment to a particular firm would guarantee high returns with little to no risk.
Steve did this and only realised he had been scammed when he was unable to contact the company by phone or email.
TIP: With world markets facing huge turmoil, an offer to move your money to investments with unusually high returns may be tempting. However, if something sounds too good to be true, it usually is. Always check the Financial Conduct Authority’s register for regulated firms, individuals and bodies at register. fca.org.uk. Being pressured to act quickly is a sure sign that something is amiss.
A knock on the door
Linda was particularly worried about contracting Covid-19 as she was vulnerable and lived alone.
She received a knock on her door from someone claiming to be a health and safety worker advising that they needed to enter her home to complete an assessment and that she needed to pay for this upfront. Linda handed over the money, but no assessment was done.
TIP 1: You should always exercise caution when accepting help from an individual or allowing them access to your home. Only accept assistance or visits from people who are known to you, or who you know have been sent by a government body or reputable organisation. If in doubt about someone’s identity, verify it by contacting the organisation they claim to be from using a number you know to be genuine.
TIP 2: There are currently no cures or vaccines for Covid-19, and medical or health professionals will not come to your home unannounced and without any prior notification.
TIP 3: If anyone attempts to force or coerce you into handing over funds – in person or otherwise – call the police.