How to avoid coronavirus money scammers

Worryingly, one in ten of us know someone who has fallen victim to a scam since the pandemic began. Here’s what to watch out for to protect yourself – and your money

Unfortunately, some people are cashing in on the fact that many of us feel vulnerable and worried at the moment. “The pandemic has seen opportunistic fraudsters up their game,” says Ashley Hart, head of fraud at TSB. “They’re rapidly developing new, sophisticated and complex scams that prey on people’s vulnerabilities and fears during these uncertain times. Now more than ever, it’s important to be extra vigilant.” But armed with some background knowledge of the most common tricks, you can help shield yourself from criminals – here’s how…

PROTECT AGAINST FAKE TEXTS & EMAILS

Fraud experts are seeing a rise in “phishing” scams, where fraudsters text consumers to look like they’re from official sources in order to gain sensitive information. “Scammers claim to be from authoritative organisations like the World Health Organisation, HMRC, your mobile phone provider, and even your GP, to trick you out of sensitive information and your money,” explains Ashley. “The pandemic has led to new forms of phishing emails – fake emails designed to get your details – beginning to circulate. They can be anything from pretend refunds for travel bookings to safety advice or donation requests, and can be a ploy to trick people.” Ashley advises staying vigilant and being wary of any communication we receive. “Don’t engage in any unsolicited contact, and always check the source before furthering any dialogue. If you think it’s a scam, hang up or delete the text and simply cut off the dialogue,” says Ashley.

CHECK THEY’RE LEGIT

“Call back the organisation they claim to be from on a trusted number – for example, if it’s your bank, use the number on the back of your card.

Otherwise, look online for the legitimate contact details,” says Ashley. Francesca Dowling, head of compliance at banking app Amaiz, also warns against clicking on any links that appear in a text message. “Some texts can look official but the links may download malware, so it’s important not to click on them. Instead, search for information on official government websites that end with ‘.gov.uk’. If your message contains notification of a fine, remember that the police, HMRC and other authorities do not issue fines by text – they always do this by post.”

VERIFY CONTACT FROM YOUR BANK

With households looking to reduce their outgoings, scammers are capitalising on this and ringing or emailing consumers pretending to be from their bank and offering interest rate holidays on their loans and mortgages. Francesca explains, “They will ask for information that they can then use or sell to others. Tell them you will call them back – banks always encourage you to do this when you have concerns. Use another phone to call the number you usually use to contact your bank, or confirm it online, to check. If you use the same phone, scammers can stay on the line and answer the ‘new’ call or intercept your security information.”

DISTRUST CLAIMS OF CASH WINS OR REBATES

With most of us worried about our finances, a competition win or an unexpected tax rebate would be welcome right now – and fraudsters know this. Ashley advises extreme caution around any communication offering you unexpected money. “While these kinds of offers and promises can understandably be appealing, it’s important to remain vigilant. This is a prime example of how scammers are taking advantage of widespread uncertainty and the potential money problems many people may be worrying about. Instead of winning cash, you may be lured into giving your account details, which could see you part with significant sums.

If it sounds too good to be true, it probably is. When it comes to tax rebates, contact HMRC directly with any questions.”

BE WARY WHEN BUYING MASKS & SANITISERS

Wanting to feel safe, many of us are trying to source things like alcohol gel, face masks and

household cleaning products online, but Ashley advises taking caution. “There are a growing number of scams in which fraudsters capitalise on people rushing to buy things like hand sanitiser and face masks. These criminals set up fake websites to sell items that never arrive.” Francesca says our choice of payment method can protect us from online scams like this. She says, “It’s better to use a service like PayPal when buying online, as they retain the payment if goods don’t arrive. Credit cards also offer some protection. And check reviews before buying too, but be mindful that a seller can pay people for good reviews, so look carefully to find less favourable ones as well.”

ALWAYS LOOK AT THE SMALL PRINT

Many of us have seen an unprecedented drop in income thanks to the pandemic. Loan sharks – money lenders who charge extremely high rates of interest, typically under illegal conditions – know this. Francesca advises being cautious of offers of credit, especially if they seem easy to obtain, and suggests doing plenty of research if you do need to borrow money. She says, “Loan companies have to declare their APR (annual percentage rate) for the interest they charge. It is worth using a comparison website to gain an idea of average rates. High interest rates can result in you paying back more than ten times the amount borrowed, so look at the total amount to be repaid carefully. Make sure you can afford repayments and check any penalties. It is also vital to check the terms of a loan – if it is a secured loan, you risk losing your home or other assets. Finally, run the company’s name through a consumer review website to see if there are complaints against them.”

Amaiz specialises in banking for small businesses. Visit Amaiz.com