The UK’s leading fraud prevention service is highlighting the latest scams and warning everyone to stay vigilant of the ever-evolving tactics that scammers are using to steal money and information.
Cifas is urging people to be on their guard as crooks are targeting people who are making new claims for Universal Credit or disability benefits. They are also making contact with Council Tax customers about bogus refunds and one set of callous criminals are even pretending to be from a law firm trying to clawback energy debts that don’t exist.
The latest scams come less than a week after HM Revenue and Customs (HMRC) warned everyone with a UK Government Gateway login to be vigilant on social media following reports of scammers trying to “borrow” these details for a fee.
Here are the latest scams to look out for
Impersonating UK Government Departments for Financial Assistance
Scammers purporting to be from the Department of Work & Penson (DWP) and other organisations are targeting those who are applying for Universal Credit and Personal Independence Payment (PIP) as the cost of living crisis worsens.
Scammers have also been targeting individuals with false Council Tax refunds and energy bill rebates.
Cifas urges anyone receiving such offers to take advice from reputable sources such as the GOV.UK website and follow official guidance for applying for financial assistance.
Energy Payments
Numerous reports have been received of fraudulent correspondence being sent by a legal company purporting to be collecting outstanding payments for an energy company.
With 40 energy organisations having gone out of business in recent months, this method of committing fraud is thought to have widened to other energy companies whereby a request for payment is demanded to settle outstanding debts.
Cifas is reminding everyone to take a moment to stop and think about the consequences of parting with their personal or financial details before doing so.
People are advised to hang up the phone if they receive such a call, and contact the organisation back on a phone number they have researched themselves.
Criminals abusing personal details to commit tax fraud
HMRC has reported that criminals are operating on social media and asking individuals for their personal tax details.
Crooks are then using these genuine details to apply for bogus tax refunds and offer to split the fraudulently obtained funds.
In this instance, the portion of funds staying with the criminal could go on to fund further crimes. There is also an additional risk that criminals could blackmail individuals after agreeing to this activity, or even use obtained personal details to commit identity fraud.
Research by Cifas has discovered one in 13 adults in the UK admitted to taking part in first-party fraudulent conduct in the last 12 months.
Taking part in such a first-party or second-party fraud scheme is illegal and those caught doing so could face serious consequences.
Commenting on the latest risks to consumers, Cifas’ Head of Fraud Intelligence, Amber Burridge, said: “Criminals are exploiting the public by using techniques designed to catch victims while their guard is down. By focusing on individuals who are financially struggling or trying to urgently assist those in need, they hope potential victims will be less likely to undertake checks to ensure the legitimacy of requests."
She added: "I encourage anyone handing over their personal details, financial details or money to take a moment to stop and think before doing so. Consider if there are any additional checks that can be completed to ensure who you are dealing with is genuine.”
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