Call for vigilance as the cost of fraud soars to £755m for year

FRAUDSTERS ARE having a field day. Despite constant warnings to be vigilant, it is so easy to fall prey to the unscrupulous who are finding ever more clever ways to deceive and illegally gain our money.

In the year celebrating 400 years since Shakespeare’s death, it is apposite that the bard remarked in Much Ado About Nothing that “the fraud of men was ever so”.

Fraud losses totalled £755m last year, a 26 per cent increase on 2014. The major areas were internet banking at £133.5m and telephone banking which rose from £16.8m to £32.3m. ‘Remote purchase’ using stolen data to buy online or by telephone jumped one-fifth to £398.2m.

There are some simple procedures to safeguard financial arrangements. Avoid money transfers. To counter fraudsters who offer goods, even accommodation abroad, and ask for payment by such a method, use a credit or debit card instead for its extra consumer protection.

A credit card provider is liable to assist if a purchase is made of over £100 but less than £30,000 and turns out to be fraudulent. This protection is there even if the card has only been used for part – at least £100 – of the transaction.

If it is a holiday booking, gain the additional security of a bonded operator and check with ABTA and ATOL that membership is current before making a commitment. Established tour operators hold liability insurance. An agency or hotel, particularly abroad, may have had its website intercepted by a fraudster and avoid the temptation to pay them directly, even if they are offering a discount.

Last year holiday fraudsters stole £11.5m, up from £2.2m in 2014, a staggering 425 per cent increase. One of the clever times fraudsters act is when late bookings are sought, particularly flights. Travel insurance will not cover as the loss is a criminal act.

Watch out for small, even tiny, changes to internet addresses. This may be as slight as changing ‘co.uk’ to ‘org’. If in doubt, check the website for the legitimate details and call to see if there have been any problems.

Another trick is to ask for a credit in favour of a bank in another country than the one expected. This can be a problem when genuine companies use facilities outside their own because of their weak national currency. Companies in Argentina, for instance, have used banks in the US for transactions for over a decade. If suspicious that a fraud has been committed, immediately contact the provider (such as bank, building society, card issuer) and report to Action Fraud, either by telephone or internet. Sadly, police forces do not make this clear but this service is run by the City of London Police on behalf of the rest of the UK.

It says suspect foreign websites cannot be suspended or fraudulent ones taken down in the UK but only by the relevant country authority after a report through Action Fraud. City of London Police admits this can take time with some states being particularly slow to act.

Stealing someone’s identity rose almost 60 per cent last year, affecting close to 150,000, reports Cifas, the prevention service. The data is often obtained by fraudsters from social media sites like Facebook.

They then apply for a PayPal account, credit card and often a mobile telephone using that person’s ID. Cyber crime is the most common criminal offence in the UK today. It has reached such proportions that it was included in the Office for National Statistics for the first time last year.

Weaknesses in the computer system at a Panama law firm unveiled the world’s largest ever cache with 11.5m documents leaked. The new Prime Minister, when Home Secretary, said in March that contactless and faceless internet crime was transacted on an “industrial scale.”

Regularly check the privacy setting on any social media site and be discreet over personal information shared online. Avoid posting photographs of your home or work.

Look at your credit file at least annually. This costs only £2 by post from the key three providers:

CallCredit, founded 2000, based in Leeds: 0113 388 4300

Equifax, established 1899, based in Atlanta USA. UK arm: 020 7298 3000

Experian, founded 1996, based Dublin. UK contact: 0800 013 8888.

Often special offers are available but take care. Equifax offers free credit reporting for 30 days but, unless cancelled, charges £14.95 monthly thereafter.

Criminals will call, often elderly people, posing as the police. They can be excellent impersonators. Often basic information – such as your title, address, bank account and possibly even recent bank transactions – is relayed to suggest the criminal is properly informed. They gain the trust before requesting either a fourdigit personal identification number (PIN) or cash to be transferred online.

Some state a person’s account has been attacked and offer to send a ‘courier’ to collect their plastic cards. Even when innocent people put their telephone down and dial out, the criminal has maintained the line open. Use a different line to call the police or leave at least five to six minutes before reusing the same telephone.

Genuine security officers and the police will never ask for your PIN or full bank details. Take care not to authorise a payment where you are unsure as banks then have no liability to reimburse.

When using a debit card, even inside a bank branch, watch for a thief who will try to distract you and seize either money or, after seeing your security code, the card. Always go over a number pad to stop someone following using a heat device to discover your numbers.

Insurance would probably be regarded as a safe field in relation to fraud particularly if arranged over the internet or through telephone call centres, bringing in many benefits in terms of flexibility and choice. Yet there are potential risks with professional-looking websites and marketing materials.

“Always check whether a company is genuine before doing business. All insurance organisations have to be registered with the Financial Conduct Authority (FCA) or Prudential Regulation Authority (PRA),” tips David Ross at the Chartered Insurance Institute.

Look for a company’s registration number on either of these regulators’ websites. Poor grammar or spelling in emails are clues. Ensure good anti-virus software is maintained as viruses can help criminals steal money.

Never respond to unknown enquiries where fraudsters seek your connection with a company but are an attempt to steal your passwords and bank details.

When making payments online, check the site is secure by making sure the web address starts with ‘https’, rather than just ‘http’ and look for a security padlock on your browser.

It is not all bad news. Cheque fraud is falling although 5,746 incidents were identified last year, down from over 15,500 in three years. The value at £18.9m now is still worrying. The fall is both because fewer cheques are being transacted but better bank security.