Scammers thrive in coronavirus lockdown

AS IF the nation didn’t have enough on its plate with the coronavirus pandemic and lockdown, it also has to stay alert against the ever-growing risk posed by fraud. Crooks and con-artists are taking advantage of the crisis to find new ways of tricking people out of their money, and there is no guarantee of compensation if you are fooled.

Victims have lost thousands and taken a hit to their self-respect, as they feel gullible for succumbing to a scam that looked plausible at the time, but obvious in retrospect.

Fraudsters can put an incredible amount of effort into scams, building up personal profiles of targets and visiting people’s homes, pretending to be from the police or their bank.

They pick their targets carefully, predominantly older people who tend to be more trusting and also have more pensions, savings and investments to steal.the first line of defence should be your own common sense but be warned, they can diddle you out of that as well.

PENSION PLOT

Pension scams are evolving, as the government ban on cold calling has driven them online, the Pensions Policy Institute warned last week.

Scammers are now exploiting internet searches, email and social media to persuade victims to invest pensions in fake, get-rich-quick schemes. In 2018, the average victim lost an incredible £82,000.

Jo Darbyshire, managing director at the Local Pensions Partnership, said reject all unexpected offers and cold calls, especially if they request personal details. Be wary of pension liberation deals, which can swallow 85 per cent of your retirement pot: “Do not hand over your life savings for short-term cash. It can cost you your future.”

Deal only with independent financial advisers registered by the Financial Conduct Authority. Check Register.fca.org.uk for details of FCA authorised advisers. “Use this register, as scammers clone legitimate adviser websites to pass themselves off as the real thing.”

COVID-19 FRAUD

Many fraudsters are exploiting Covid-19 fears in all sorts of ways, said Romi Savova, chief executive of Pensionbee: “They are pretending to be health companies or official bodies to trick people into giving away personal information, passwords and financial details.”

Others target people worried about financial security in the downturn by offering early access to pension savings and guaranteed returns on investments, Savova added.

The lockdown has given them a captive audience: “Be wary of anyone calling to offer free advice or recommending you move investments. No reputable financial services professional would do this.”

Another scam is targeting OAPS who are self-isolating, by knocking on doors claiming to be carrying out coronavirus testing at home, on behalf of the NHS or your GP.

An Age UK spokesperson said: “NHS teams are not conducting any door-to-door testing for the coronavirus.these are thieves trying to get into your home.”

Criminals have also been going from door to door, asking for donations to help the NHS fight Covid-19. Others operate online, selling face masks, hand sanitiser and testing kits which never arrive.

Action Fraud has been registering on average 50 coronavirus-related fraud attempts every day.the actual total is likely to be far higher.

PHISH AND SMISH

More than a third of Britons have seen an increase in scams since the lockdown, Comparethemarket.com research shows.

Email “phishing” scams are on the rise, as fraudsters encourage you to click on emails pretending to be from banks, credit card companies or streaming services.

“Smishing” scams target your mobile with bogus texts. One notified recipients they had been seen leaving their homes during the lockdown and had to pay a £250 fine via Gov.uk, but linked to a fake website.

One in five

Britons have had to cancel or replace a credit card due to attempted fraud, of whom half lost money, on average £846, Comparethe Market’s figures show.

Head of money John Crossley said never give your PIN, account number or sort code over the phone, as your bank will never request this.

TAKE ACTION

Katy Worobec, managing director of economic crime at UK Finance, said: “It is OK to refuse or ignore any requests. Only criminals will try to panic or rush you.”

Contact your bank immediately if targeted by a scam and report it to Action Fraud on 0300 123 2040 or visit Actionfraud.police.uk. “Report suspicious texts by forwarding the message to 7726,”Worobec added.

Last week it emerged hackers have accessed the personal details of nine million easyjet customers, including credit card details of 2,000 customers.

Aman Johal, director at Your Lawyers, said although there is no evidence customer data has been misused, the failing is disastrous: “Customers could fall victim to identity theft and financial fraud.”

Treat fraudsters like Covid-19 and keep your distance. Stay safe. Protect your wallet. Save money.

‘A phoney text scam notified recipients they had been seen leaving home and had to pay a £250 fine’