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Fraud is big business: it raised £ 1.2 billion for criminals last year and has become one of the UK’s largest types of crime.
And criminals are using Covid-19 as a smokescreen for new cons as they seek to cash in during the shutdown.
More than £ 2 million was lost to coronavirus-related scams in the first weeks of the current crisis.
But what are these scams and what can you do to prevent unscrupulous rogues from getting the hard-earned money in their hands?
Stuart Skinner, director of fraud at the Nationwide Building Society, told us: “Every day, our team talks to people who have been the victims of scams and hear heartbreaking stories of the devastating impact this can have on people’s lives.”
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“The amounts that some people lose can be huge, but even a few hundred pounds can be traumatic for someone if it’s their lifetime savings.”
“It may seem like there are a lot of different scams doing the rounds, so it can be overwhelming trying to understand them.”
“Often, though, while the story may change, the ruse is often the same: They want you to send them your money.”
“Some scams are easy to spot, as most people now know that they are unlikely to have won millions in a foreign lottery they have never entered, but some are so sophisticated that it is not always obvious, even to us. detect them. “
One thing is clear, scammers quickly change tactics, using current situations or events to try to catch people off guard. Whether it’s the current pandemic and our fears and concerns around it, a data breach at a high-profile company, or a seasonal event.
Is there a difference between fraud and a scam?
(Image: Getty)
The financial industry makes a distinction between what it calls fraud and scams. And this guides how they handle those crimes.
Fraud is where someone else can withdraw money from your account – unauthorized transaction
Scams is where someone tricks the victim into paying funds into a dubious account – authorized transaction
Fraud victims, that is, when the card / bank details have been compromised and used by a scammer, get their money back if they contact their bank or construction company.
Scam victims – that is, where they have been tricked into paying funds into a criminal account, often referred to as Authorized Push Payment Scams (APP) – will find it more difficult for your bank to refund your money, many of them they end up out of pocket.
Scams to watch out for right now
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Investment scams – Today’s volatile markets have led people to worry about their pensions and investments.
The lure of a great return can mean that people separate themselves from lifelong savings and can send multiple payments over a period of time. Victims do not realize they have been scammed until they try to collect investments. -
Online shopping scams: Everyone loves a bargain, or is currently happy when they think they have found an item that is in short supply. Criminals use pressure to get people to act fast and pay up front, before someone else beats them. And then the goods never arrive.
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Secure account fraud / spoofing – criminals contact people by phone / text / email claiming to be from a person’s bank / construction company or the police.
They build trust and convince the victim that their account has been defrauded and they need to move money to a new account for security.
Scammers currently use fears about the virus to get people to click on links in text messages and then encourage them to hand over their bank or card details or send money.
Where do scams come from?
(Image: Getty Images)
Phone – cold calls or text messages. Do not provide PIN or bank details online. Don’t be fooled into logging into online banking (scams that don’t work are plentiful). Call your official bank number from another phone.
Email – It seems to come from a genuine company. Check the minor address amendments or hover over the address to reveal your true identity. Always call an official number to check if it is genuine.
Social networks – rogues will crawl social media to gather your personal information; be careful what you post. Furthermore, they use this to promote unreliable investments, goods and services.
Dating Websites – pray for loneliness and build trust and then ask for money.
Front door – Dishonest merchant scammers ask for money up front or charge exorbitant fees for work they don’t need to do at home. And courier scams where someone is sent to your door to collect your bank card and PIN.
How can I protect myself and my loved ones?
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Never act on an unexpected call and transfer money at the request of the caller. A genuine organization would never ask you to do this.
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If something sounds too good to be true, it probably is. Never part with any money without doing a thorough research to ensure something is genuine. Always use reputable websites / apps when buying products.
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Don’t let them rush you into anything – online, on the phone, or at your doorstep.
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Be careful to allow anyone to have remote access to your computer. Never log in to your Internet bank account while allowing someone remote access.
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Be on the lookout – fake email invoices can be very compelling. Use the original contact details you got from your provider to contact them and check if the changes to the bank account are genuine.
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Please do not provide your bank information, card or PIN, or withdraw money / buy products from someone who claims that this is necessary for an investigation; a genuine company would never do that.
Three things a bank or construction company would never ask you
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We ask that you share your online or mobile bank details, card PIN numbers, or full passwords.
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We ask that you transfer your cash to a new “secure” account due to fraud issues.
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Send a courier service to your home to collect your bank card and request your PIN.
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