Cost of living crisis fuelling fraud explosion

Ruthless criminals are gearing up to take advantage of the panic surrounding rising bills and recordhigh inflation, reports Rachel Mortimer

Fraudsters are targeting desperate households struggling to survive the cost of living crisis as experts warn that the situation is fuelling a new scam epidemic.

Criminals have used “ruthless opportunism” to exploit people’s worries about soaring energy and household bills in recent weeks. Three in four people have been targeted by suspicious activity since November, according to a recent survey by Barclays.

Households have been increasingly targeted by phishing emails impersonating energy companies and government departments or offering rebates on gas and electricity bills and council tax refunds. When victims hand over personal details, scammers use them to drain bank accounts.

In another scam, fraudsters have contacted victims claiming to be a legal company and demand outstanding payments on behalf of energy firms.

Amber Burridge of Cifas, Britain’s biggest independent anti-fraud agency, warned that new scams would emerge as the cost of living soared.

She said: “One common technique we see criminals use on social media is creating fake voucher offers for supermarkets and shopping websites. These scams will often use the logos of wellknown brands and lead victims to phishing websites designed to steal personal and financial details.”

Scammers have also been going doorto- door impersonating energy suppliers to defraud customers, the police told Telegraph Money.

Detective chief inspector Craig Mullish of the City of London Police said: “We have seen criminals try to defraud customers of a number of leading energy companies by offering cut-price deals to those who use prepayment meters.

“These fraudsters approach victims on their doorstep and offer them cloned keys to top up their energy credit. Although the victim believes they have got a bargain, in reality they will end up paying for the energy twice.

“Energy companies can detect that they have not received payment for energy used and so the victim will be required to cover the costs.” It is understood customers of EDF Energy, E.On, British Gas, SSE and Scottish Power have all been targeted by the scam.

He added: “The perpetrators are believed to have links to serious and organised criminal activity, meaning that the money will be used to fund further criminal activity.”

The surge in fraud follows a similar boom during the pandemic, when scammers preyed on locked down and isolated households to dupe them out of huge sums of money.

Last year fraudulent delivery texts, fake Covid testing scams and swindlers pretending to offer help under government support schemes were common.

The number of fraud cases reported to Victim Support, a charity that supports those affected by crime, doubled during the Covid crisis.

Diana Fawcett from Victim Support said: “We consistently see fraudsters using calculated and manipulative tactics to target people when they’re at their most vulnerable.”

She said criminals had already adapted their tactics to exploit stretched households desperate to keep their bills down. “This kind of ruthless opportunism is how they operate and it’s appalling to hear accounts of fraudsters using the cost of living crisis as a weapon with which to exploit innocent people.”

Ms Burridge added that fraudsters would target “the most vulnerable and impressionable”, particularly the elderly and those who live alone. “Unfortunately criminals have little care for who they prey upon,” she added.

Mel Stride, Conservative MP for Central Devon and chairman of the Treasury committee, called for the Government to “crack down on the epidemic” and save households the pain of losing their savings.

He said: “It is sickening to hear stories of people falling prey at a time of great hardship during the pandemic, and it is a sad fact that pernicious criminals continue to exploit people as they struggle with the cost of living.”

Cifas has also reported an increase in scammers impersonating the Department for Work & Pensions and other government departments as the cost of living crisis escalates. The fraudsters target those who apply for Universal Credit and the Personal Independence Payment, a benefit that helps the ill and disabled, hoping to steal personal data and financial details.

Anyone approached out of the blue by a company or individual offering refunds or demanding payment for services has been urged to avoid handing over any personal details or money.

A spokesman for UK Finance, the banking trade body, said: “Given the cost of living crisis, it’s important for people to be on guard for attempts by fraudsters who seek to take advantage. Always be cautious of any unsolicited messages or calls and avoid clicking on links.”

‘We have seen criminals target customers of leading energy suppliers’