I’m a cyber crime expert – here’s how to avoid the latest scams, from sneaky Whatsapp trick to convincing crypto con
A QUARTER of us are resorting to borrowing or loans to meet our summer expenses while we navigate the cost-of-living crisis — and scammers are taking advantage.
Data from the Financial Conduct Authority shows a 26 percent rise in complaints from consumers who fell victim to loan fee fraud last summer compared to 2021, and the number of cases is expected to rise again this year.
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A staggering £1.2 billion was lost to financial fraud in 2022, according to UK Finance data released in May.
And scams are becoming more credible as scammers use sophisticated tricks to lure more and more victims.
According to Citizens Advice, around 40 million adults were targeted by scammers in the first quarter of 2023 alone.
So what can you do to protect yourself?
Professor Mark Button, co-director of the Center for Cybercrime and Financial Crime at the University of Portsmouth, explains to Claire Dunwell what scams to watch out for and how to protect yourself against scams.
Disadvantages of WhatsApp
If someone in your work or neighbors WhatsApp group suddenly asks you for cash, alarm bells should be ringing.
Scammers will hack in and pose as members of the group before demanding cash or asking you to donate to a good cause.
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Mark explains: “Scammers first gain access by either stealing someone’s phone or hacking their account before setting up the victim’s WhatsApp account on another device.
“They either ask for money or ask you to send cash for a cause while pretending to be someone you know.
“If you are asked for money or sensitive information, even if you believe it is a family member, call the person to verify it.”
Credit fee fraud
THOUSANDS of us apply for a loan every day – but how can you be sure the company you are using is reputable?
Scammers pose as lenders and purge the weak.
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“You apply for a loan, they charge a fee, but the loan doesn’t go through,” explains Mark.
“Even if you don’t get the loan, they still take the money and now they have your financial information too.
“The fee alone will set you back around £260 so be aware.
“Check the FCA website to see if the company is legit.
“Loan scammers pop up when you search online, and some use social media to target victims.
“They also attract people with unrealistically low tariffs.”
QR code jacking
From restaurant menus to parking lots, QR codes are popping up everywhere and scammers are targeting them.
The new tricks include inserting a fake QR code over the legitimate code, which allows them to steal money and personal information instantly.
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Scammers can call their victims and pose as their bank employees to get more money out of them.
Mark says, “Look for clues. Was the QR code you used pasted over an original code?
“Or maybe the website you’re taken to after scanning the QR doesn’t exactly match the parking lot name or location code.
“QR codes can also lead to identity theft. So it’s important to verify that the code you’re using is genuine, and if you have another way to pay, then do it.”
Shop without showing up
Whether you’re shopping through a website or Facebook Marketplace, scammers can fool you with products that don’t show up, are fake, or don’t exist.
According to Mark, shopping scammers are becoming more sophisticated.
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He says: “Their websites often rank high in Google searches because they are very good at crafting the algorithms.
“By the time the tech companies caught up with them through victim complaints, they were gone.
“Some red flags include: an offer that seems too good to be true, an unusual web address, or an odd twist on a legitimate brand name.
“The scamadviser.com website will tell you if there is a significant risk, so check first.”
ghost broker
YOUNG people in particular are at risk of being deceived by scammers who sell invalid car insurance at unrealistically low prices.
Ghost brokers offer fake insurance, provide false certificates, or go to an insurance company with false information in order to secure lower premiums and collect the difference.
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Insurance company LV= reported a 31 percent increase in insurance fraud in the first three months of 2023 and a 143 percent increase in ghost broker cases filed with police over the past year.
Criminals often advertise on social media, online forums, and near universities and pubs.
Victims rarely know they have been attacked until they attempt to claim it.
Mark advises. “If a deal sounds too good to be true, chances are you’re being scammed.”
Romantic villains
NEVER hand over money to someone you met online because scammers lurk across websites, social media, chat rooms and even chat-enabled games like Words with Friends.
They either ask for money directly or even encourage you to invest in a real estate or cryptocurrency platform controlled by the scammers.
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“This is the most difficult scam to tackle because by the time the money is paid out, the criminal has already gained the victims’ trust,” says Mark.
“If someone is legitimate, you should be able to verify their identity in other ways, such as arranging a video call, searching their pictures on Google, or arranging to meet in person.
“If you dislike any of it, avoid it.”
Employment and training fraud
Another lucrative target can be job seekers looking for an education to improve their chances of employment with potential employers.
Mark explains: “Scammers make money by offering the unemployed – or recently made redundant – an apprenticeship or work experience for a few hundred pounds.
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“Either the quality is very bad or nothing happens.”
“They advertise fake products and services on websites or social media, often end up promising a guaranteed job and asking for a deposit upfront.
“It’s best to always do some research on the company behind the ad, and if you’re parting with money, always use a credit card for added financial security to help you in case something goes wrong.”
Fraud in the boiler room
CYBER CRIMINALS use Twitter/X, Facebook and Instagram to spread investment scams – and it’s not just the rich who are at risk of being targeted by these persistent coercive tactics.
Mark says: “Scammers tell victims about hot investments that they claim will turn a few hundred pounds into thousands, but they are fake.”
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Reputable firms won’t pressure you into making an investment right away, and Mark says it’s important to seek independent advice before making any financial decisions.
He adds: “Investing is not the same as gambling, tread carefully – visit the FCA website for a list of reputable investment providers.
“Or talk to a financial advisor if you’re planning to invest even the smallest amount of money.”