Don’t let Covid crooks steal all of your savings

Fraudsters are having a field day in the pandemic but by following our simple advice you should avoid becoming a victim

ONLINE fraudsters have loved coronavirus. They have stolen more than £55million in the first six months of the year, via investment scams alone.

And they’re cashing in on people worried by the pandemic and trying to make better returns on saved cash by looking for investments that beat banks’ pitiful rates.

The average amount embezzled was £19,000, although some victims had eye-watering amounts over £50,000 stolen as criminals helped themselves to pension pots, house sale funds, redundancy payments and inheritance sums, according to Nationwide Building Society.

People under 40 accounted for 58 per cent of reported investment scams between January and the end of June, with an average loss of £2377, but 75 per cent of the total amount lost was taken from people over 60.

Thieves target older people as they are more likely to have larger savings. Younger people tend to fall prey to pyramid- type scams advertised on social media.

These are where you pay crooks cash with the expectation 10 others will pay you. But typically money just disappears along with the rogues.

When it comes to luring out larger sums from older people, crooks know they have to be smar t er and more sophisticated.

Nationwide has seen a rise in fraudsters cloning the identity of legitimate firms – mimicking them in as much detail as they can – even down to pretending to be licensed by the Financial Conduct Authority and using the personal details of real employees.

A lot of the high value scams in the past six months have involved cryptocurrency or online trading platforms.

In these, a victim typically enquires online about investing and accepts the help of a broker to create an online trading account.

That just gives access to the scammers, who help themselves to the money in the account.

Stuart Skinner, Nationwide’s economic crime director, said: “Investment scams are extremely dangerous, and if you’re targeted you could lose your life savings. In the last six months there has been

Investment scams are very dangerous. If you’re targeted you could lose your life savings

an increase in these scams as the pandemic and the low base rate is encouraging people to make more of their money.” The bottom line is to never underestimate fraudsters – or think they’ll never fool you.

They are prepared to spend a lot of time getting to know the details of an investment firm so they can pull off a realistic impersonation.

They may also lure you to keep giving them money by initially paying out some form of return on your initial investment.

Be wary of any investment opportunity out of the blue – from an unexpected phone call, text, junk mail or over social media.

Don’t be encouraged to act quickly so you don’t have time to think something through properly.

Stuart said: “Scammers make careers out of exploiting people, often vulnerable and elderly people, and stealing their savings.

“The money they earn might be used to fund a lavish criminal lifestyle, or it might be used to fund human trafficking and terrorism.

“Building societies and banks invest millions of pounds into their security systems each year, and with your help we can all put a stop to organised crime.”

So follow the advice below and be aware that anyone, no matter how smart they think they are, can end up a victim of online fraud.

WHAT IS AN INVESTMENT SCAM?

You are persuaded to move your money to a fictitious fund or to pay for a fake investment with the promise of a high return.

These include convincing you to invest in markets such as gold, property, carbon, cryptocurrencies and wine.

Gangs will spend time finding out as much information as possible about you, such as previous investments and shares you hold to make them sound legitimate.

HOW TO SPOT IT

You are contacted out of the blue – by phone, email or social media about an investment opportunity.

You’re pressured into making a quick decision – such as a time-limited offer. There will be an offer of a high return on your investment, with little risk.

It’s an investment opportunity that’s “exclusive to you”.

HOW TO AVOID IT

If an opportunity sounds too good to be true or if the returns seem too high in the current climate, it is likely to be a scam. Make sure you

check, double check and thoroughly check again before handing over any cash.

Ensure you check that a company and any individual you have contact with is on the Financial Conduct Authority’s list of scammers at fca.org.uk/consumers/unauthorised-firms-individuals.

Be vigilant – the websites used by fraudulent clone firms can be highly convincing.

If you suspect a clone firm may be trying to scam you, contact the real firm on the number listed by the FCA at fca.org.uk/firms/financial-services-register

You can also check on the FCA’s register to see if the website being used is legitimate.

Be wary of anyone getting in touch with you out of the blue, especially if they want to talk about your finances. A real firm will never pressure you into making an investment decision quickly.

If you believe you have been scammed, contact your bank or building society immediately.

You can report scams to Police Scotland by calling 101 or emailing contactus@scotland.pnn.police.uk.