BOGUS GRANTS FRAUD ALARM
FRAUDSTERS are offering fake government grants to con people out of thousands of pounds. Anti-fraud organisation Action Fraud is warning people to watch out for emails and cold calls from fraudsters who are asking people to apply for government grants in return for an advance fee.
Nationwide says there have been 85 reports of this type of fraud since January 2017, with a total loss of £255,724 and an average loss of £3,000.
The con artists use bogus company websites, claiming to be operating on behalf of the UK government. They cold-call businesses and individuals offering the grants and direct them to fill out an online application form with personal information.
Once the fraudsters have obtained the information they will re-contact victims and congratulate them on being accepted for a grant.
Applicants are then asked to provide identification and are instructed to get a pre-paid card to deposit their own contribution to the fake govern- ment grant scheme. Prepaid cards are used in a similar way to credit cards, except the funds are loaded on prior to spending.
Fraudsters will contact the victims to ask for the details of their pre-paid card and copies of statements in order for them to add the grant funds.
The grant funds are never given and the money on the card is stolen.
Detective Chief Inspector Brian Kearney, North Wales Police local policing lead on fraud, says phone, online sales and phishing emails are the most common fraud.
He said: “In the last six months over £2 million has been lost to victims within North Wales as a result of fraud.
“Phone frauds have seen some victims called in an effort to persuade them to hand over personal details.
“When online, a fraudulent company website is used with a very similar website address to a well-known retailer. A phishing email is one designed to convince the recipient to hand over valuable personal details, money, or download something which infects a computer to enable fraud.
“What is clear is that most victims in North Wales are 60 years or over.
“North Wales Police have been advised by Action Fraud of farmers being targeted by a fraudster using Payment Diversion. The fraudster purports to be a trusted senior colleague or established customer and asks the individual to amend a bank transfer. Often these fraudsters will make the request under the pretence of a sensitive or urgent transaction.”
Regarding the bogus government grants, the National Fraud Intelligence Bureau (NFIB) has disrupted one website that was being used to commit this fraud and is working with Companies House to identify other fake companies.
Temporary detective chief inspector Lara Xenoudakis, from City of London Police, said: “Under the guise of the UK Government, fraudsters are taking advantage of people’s trust by setting up convincing fake websites.
“The NFIB is working hard take down these websites and prevent people from falling victim.
“A legitimate Government grant scheme would never expect to receive an upfront payment, so it is important that anyone who believes they may have been contacted by these fraudsters makes a report to Action Fraud.”
An Action Fraud spokesman said: “Be wary of unsolicited calls about applying for grants. You should never have to pay to receive a Government grant, and they won’t instruct you to obtain a pre-paid card.
“The government should have all the information they need if a genuine grant application was submitted, therefore any requests for personal information should be refused.
“If you think your bank or personal details have been compromised or you believe you have been defrauded contact your bank immediately. Stop all communication with the ‘agency’, note their details and report it to Action Fraud.”