Locked down and cleaned out: Fraud surges in pandemic as crooks steal £86m from Scots
Fraudsters use cover of Covid to target stay-at-home Scots as experts warn of plausible crooks with more sophisticated scams
Fraudsters have stolen more than £86 million from Scots as the pandemic eases their route to locked-down victims, experts warn today.
Police Scotland figures show that reports of fraud were up 60% yearon-year in January, and 45% in February. The crime statistics mean that 2021 has started the same way as last year ended, with crooks making the most of new opportunities to target large numbers of people working from home or on furlough. Consumer advice and government agencies are alarmed at the record numbers of victims contacting them about being scammed. Age Scotland says calls to its helpline have soared by 53% in the past 12 months while Trading Standards estimates that more than £5m has been stolen in Covid-related scams alone. These types of frauds include track-and-trace scams, such as bogus apps, emails and texts telling people they have been in contact with coronavirus and to click a link or call a number. Home working scams – in which fraudsters may impersonate payroll departments and internet providers – are also on the rise.
“It is difficult to get a true picture of the sheer volume of fraud going on during lockdowns as most people don’t want to come forward and report these due to perceived stigma or embarrassment,” said Katherine Hart, lead officer at the Chartered Trading Standards Institute.
“It is believed the amounts involved could total well above £86m and at least £5m of that has been stolen from people via direct Covid scams alone. These criminals are now so sophisticated and convincing that just about anyone could be taken in by them.”
In the past, it was mainly the elderly and the most vulnerable who were targeted by fraudsters but now growing numbers of young people are being scammed out of cash too, according to Graeme Paton,
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Almost anyone can be taken in by these scams
chair of the Society of Chief Officers of Trading Standards in Scotland. “I have seen evidence that older people who could previously look after themselves with no trouble are more than twice as likely to need home care or go into a home within two years of being scammed,” he said. “Their confidence
takes a hammering and they find that they then struggle to cope. “But now we are hearing from people in their 30s and 40s who are being targeted, as more of them are at home in front of a computer. “These are often bright individuals who feel embarrassed they have been duped and it can lead to
them becoming depressed and even paranoid that someone is watching them or tracking their every move online. Some even feel suicidal because of it. The sheer scale of this problem is a big concern.” Consumer agencies report the most recent frauds include Covid scams, bank scams, HMRC scams and
“phishing” messages supposedly from online firms such as Amazon. People are also being conned via cloned and fake websites, business scams such as fake grants, cold callers, counterfeit goods and misleading energy marketing, and the illegal puppy trade is booming. “Younger victims are even less likely to report a fraud, or even tell their own family about it, because they feel they should know better,” said Colin Mathieson, spokesperson for Advice Direct Scotland. “But these criminals can fool just about anyone. Even the most logical and level-headed people can be taken in.” Ruth Mendel, policy officer for Citizens Advice Scotland, said fraud was a very real crime, often with lasting financial and emotional consequences for victims. “If someone had their wallet stolen from their pocket, they would soon report it but many see reporting being conned as admitting to being weak or even stupid,” she said. “But dealing with this on your own without a support network can make some people feel even worse. “The more people report these sorts of incidents, the more other people will become aware of them.” The surge in fraud is also causing backlogs in the courts. Scotland officially recorded only one high-profile fraud case for the entire period of 2020 as Covid-19 continues to pose significant logistical challenges for the country’s justice system. KPMG’S UK head of investigations, Roy Waligora, said increased costs to businesses through fraud were likely to be passed on to customers. “We expect that it will be at least another 18 months before things start to normalise,” he said. Police Scotland said it was committed to investigating all types of fraud and urged more victims to report suspicious or criminal activity. Detective Superintendent Dave Ferry said: “Over the past year, as people have stayed at home, more and more of our business has been carried out online; whether that is social engagement, shopping or working from home. “We already know that those who are involved in carrying out fraud and scams are undoubtedly attracted to the online space and, as a result, we have seen an increase of reported frauds in these areas. “Reporting these crimes to police is very important in our effort to tackle fraud, as it enables us to identity areas of concern and find patterns of behaviour.” He added: “This information is invaluable in ensuring that we have a true picture of the types of fraudulent activity taking place across the country. With this we can put appropriate measures in place that allow us to further investigate and also support victims of these types of crime.”