Criminals are using the pandemic as a way to find new scam victims. But there are some excellent resources available to help you avoid becoming a target.
The pandemic has given fraudsters an opportunity to devise a host of new scams – and the authorities say it has never been more important for people to be aware of the tactics most commonly used to commit financial crime.
“Criminals will use every opportunity they can to defraud innocent people,” explains Gary Miles, a Detective Chief Inspector with the Metropolitan Police.
“It is likely that criminals will continue to attempt to exploit the impact of coronavirus (COVID-19) on the economy and people’s personal finances, as they did after the financial crisis in 2008.
“We are not trying to scare people at a time when they are already anxious. We simply want them to be aware of the very simple steps they can take to protect themselves from handing over their money, or personal details, to criminals.”
Help is at hand:-
Fortunately, there are a number of campaigns and free resources that have been created to promote better understanding of financial crime among the public. These include the Met’s own publications The Little Book of Big Scams and The Little Booklet of Phone Scams – both of which can be downloaded here – as well as National Trading Standards’ Friends Against Scams programme, which encourages people to support their friends and relatives by sharing information about how fraudsters operate. There is also the UK Finance’s Take Five campaign.
Be aware:
“These resources are vitally important at the moment as we are seeing numerous reports of fraudsters trying to take advantage of the crisis.
“By familiarising yourself with the advice they contain – as well as sharing it with friends and family members – you will be much more likely to be able to spot when an email, phone call or text message is suspicious.”
Miles says: “While fraud reporting levels into Action Fraud and the Financial Conduct Authority have not increased, we have seen a number of different scams circulating relating to COVID-19.”
“Criminals will also try to isolate their victims, and encourage them not to discuss transactions with other people. If it sounds too good to be true, it probably is”.
These include online shopping scams where criminals, instead of selling fake iPhones or games consoles as they might have done in the past, are persuading victims to pay money for non-existent face masks or hand sanitiser. He adds: “Criminals are also using government branding to try to trick people, including using HMRC branding to make spurious offers of financial support through unsolicited emails, phone calls and text messages.”
Red flags:
“There are a number of red flags that people should be aware of: for example, fraudsters often seek to put their victims under pressure to act quickly, perhaps by saying that a once-in-a-lifetime investment opportunity will only be available if they snap it up straight away.
“Scammers will also try to isolate their victims, and encourage them not to discuss transactions with other people. A good rule of thumb is, if it sounds too good to be true, it probably is.”
“Campaigns such as Take Five and Friends Against Scams stress the importance of not rushing into decisions, and of always trying to step back and think about what you are doing. The fact is that most frauds are easy to spot as long as you know what you are looking for – and these campaigns can play a vital role in educating, informing and protecting the public.”
The Little Book of Big Scams covers the ways in which criminals typically target their victims. One common approach is social engineering, which involves trying to win the trust of victims, for example by pretending to be police officers or bank staff.
The book also covers a wide range of fraud types, from holiday and shopping fraud to fake investments and money laundering.
Miles says that the most important steps to take in any situation that involves paying money or divulging personal information are:-
Stop: taking a moment to think before parting with your money or information could help keep you safe.
Challenge: could it be fake? It’s OK to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
Protect: contact your bank immediately if you think you’ve fallen victim to a scam and report it to Action Fraud.
He adds: “The police or your bank will never ask you to withdraw money or transfer it to a different account. They will also never ask you to reveal your full banking password or PIN.
“Finally, you should confirm requests are genuine by using a number known to you, not one provided by the caller, or email address to contact organisations directly.”
