Scams using cost of living crisis on the rise

SCAMMERS are now more likely to use the cost of living crisis to prey on victims than Covid, with a 14 per cent rise in frauds over the past year, new data has revealed.

Some 41 million people, more than three quarters of the adult population, have reported being victims to scams or attempted frauds this year, according to charity Citizens Advice. That is up from 36 million in 2021.

Parcel delivery scams, phishing scams and investment scams are still the most commonly reported types of fraud. However, scammers are increasingly using the cost of living crisis to lure victims, with 28 per cent of polled consumers saying they had been targeted by rebate or refund scams this year, while 12 per cent said they had been offered fake energy bills support.

Reported frauds included fake emails claiming to be from the energy regulator Ofgem asking people to enter their bank details to get help with their gas bills, taking advantage of confusion over state support schemes.

A number of high-street banks have also issued warnings this year about “loan fee fraud”, where victims pay arrangement fees for urgently-needed loans they never receive.

It marks a departure from the pandemic, when fraudsters increased their targeting of people spending more time at home. Elderly people in isolation, often using services such as online banking for the first time, were a par- ticular target.

Paul Scully, Minister for Small Businesses, Consumers and Labour Markets, said scammers were “disgracefully using the difficult times families have been facing to try and rip them off ”.

The Government has provided £37billion in support for households to help with living costs this year. This includes £15billion in energy bills rebates, as well as targeted grants for people on benefits, the disabled and pensioners.

John Herriman of Trading Standards said living costs affected everyone, meaning more people were at risk this year.

“At a time when the sad reality is that some are having to make choices between heating and eating, people can be particularly vulnerable to fraudsters offering things like cheaper energy,” he said.

‘Some are having to choose between heating and eating... they can be particularly vulnerable to fraudsters’