AML Conference Online: Preview
The Institute of Financial Accountants is hosting the inaugural AML Conference Online on 21 May. The one-day virtual...
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Since the pandemic, the number of scams designed to trick consumers into handing over their personal details and cash-in on current financial uncertainties has also been on the up. Pension scams, travel scams, and fake charities are all among the methods fraudsters have been using to dupe unwitting consumers. With the energy crisis at the forefront of everyone’s mind, the Business and Energy Secretary, Jacob Rees Mogg, recently stepped in to warn against fake messages claiming to be from Ofgem.
But, with claims estimating that as many as one-in-three have already fallen victim, what should you be looking out for and what action do you need to take if you fear you have fallen foul of a fraudulent message? Aldermore Bank explains how you can take steps to protect your small business against fraud.
This type of scam tries to convince you that you have a problem with your computer or internet connection. You’ll be called by someone who claims to be from your telecoms or broadband provider and they’ll request remote access or ask you to download software to your computer to fix a problem. By providing access or downloading the software, you’re providing the scammer with access to your computer. They’ll then look to compromise your security by accessing your sensitive information or financial accounts.
Our advice:
You’ll be contacted by someone claiming to be from a trusted organisation such as your bank (typically the fraud team) or the police, who’ll tell you that your account has been compromised in some way and that you need to move your money to a 'safe account'. The details they’ll give you will be fraudulent and once you move your money they’ll have access to it.
Our advice:
Push Payment Fraud is where scammers convince a customer to transfer money to them. The scammers may pose as a legitimate business or individual who is known to you, typically via email, to inform you that their bank account details have changed and to make a payment to the new account. The scammer may have intercepted emails and therefore have information to make them appear convincing, such as information about who you are due to make payment to.
Our advice:
Email fraud is commonly referred to as ‘phishing’. Always be suspicious of unsolicited emails that are supposedly from your bank or some other trusted organisation because the address can be easily faked. The email will typically encourage you to click a link and log into your account, by telling you your account has been locked or that there’s been an unauthorised login attempt. In reality, the link in the email goes to a fake website that collects your information or targets your computer with a computer virus. Another version of this scam involves an email attachment, which is in fact a computer virus.
Our advice:
Vishing (“voice phishing”) is the same as phishing, but you’ll be contacted by telephone rather than email. You’ll get an unsolicited phone call encouraging you to give out your personal details, such as sensitive financial information. The fraudsters might call you on your mobile phone or landline pretending to be calling from your bank or another mainstream provider offering a ‘one-time deal’ or an unsolicited upgrade. They may already have some of your personal information such as your name, address, or phone number to make them sound genuine.
Our advice:
A text message might not be from who you think – Smishing is when scammers pretend a message is from your bank or another organisation you trust. They will usually tell you there’s been fraud on your account and will ask you to deal with it by calling a number or accessing a hyperlink. Please take a moment to stop and think if the message has come from a legitimate source.
Our advice:
Usually, identity thieves work online, looking for snippets of information about your life in social media posts and profiles, and unprotected email accounts. They exploit the fact that people like to share personal information with their online friends – and can be lax with security. Equally, they can find confidential information like National Insurance and bank account numbers in un-shredded rubbish. It doesn’t take many of these snippets for them to successfully steal your identity and wreak havoc with your life.
Our advice:
Take Five is an initiative led by UK Finance. Its aim is to encourage people to stop and take time to think before they act. Always remember these five rules:
Don’t be too embarrassed to report it – more and more people are being deceived by ever more sophisticated methods. If you believe you’ve fallen for a scam, contact your bank immediately on a number you know to be correct, such as the one listed on your statement, their website, or on the back of your debit or credit card.
Report it to Action Fraud on 0300 123 2040 or online. If you are in Scotland, please report to Police Scotland directly by calling 101 or Advice Direct Scotland on 0808 164 6000.