Tag: scams

Avoiding scams on Black Friday

A LEADING consumer expert has shared her top tips for avoiding being scammed or having your bank account emptied by cyber criminals when shopping for Christmas on Black Friday this week.

Jane Hawkes warned that consumers have to be on high alert for online scammers who try to cash in on one of the busiest days in the year for retailers.

She said cyber-crooks are bombarding consumers with emails that are designed to trick them into revealing sensitive information like banking and credit card details.

In the past few days, banks, building societies and online retailers have issued warnings as the nation gets ready to spend.

Data released by Action Fraud revealed that there were more than 16,000 reports of online shopping fraud during last year’s festive season.

Many fraudsters rely on text and email messages that appear to be from legitimate businesses but contain links to fake websites that are designed to harvest bank logins and credit card details.

The process is known as phishing and the mobile phone firm Three said it received over 3,500 complaints about fraudsters over the last holiday period.

The cyber security firm Bitdefender estimates that 77% of Black Friday-themed spam emails are scams, while Barclays says the average loss on a shopping scam is £700.

And consumer expert Jane said attackers are becoming more creative: “They are now tailoring their tactics and messaging for greater appeal to different groups of shoppers in specific demographics and regions.

“These are organised cyber criminals sending billions of messages using tactics that include phishing emails, sophisticated malware attacks, and the impersonation of popular brands. 

“Beware, for example, of ‘dear customer’ emails and messages warning that a package has been delayed and asking you to click on a link to confirm your details.

“There are even kits that can be bought on the Dark Web that allow criminals to set up very convincing but fake online banking portals, so the stakes can be very high.”

Her advice to shoppers is:

  • Do your research with due diligence- the devil is in the detail, make sure you check it. If it sounds too good to be true, it is. Trust your gut feeling.
  • Check reviews before purchase – watch out for any which are overly complimentary and with similar wording. This could be a sign of a scam outfit as opposed to a genuine endorsement.
  • Be wary of any red flags – super cheap pricing, urgency to make time pressured decisions, unknown companies, lack of contact details on websites and websites which don’t function correctly, misspelling of website urls or item descriptions.
  • Check unfamiliar domain names on Who is? https://who.is/
  • Pay for purchases via credit card for maximum consumer protection.
  • Set up alerts with banks and providers so you are alerted if there is any activity on your account or your card is being used.
  • Have different passwords for your online accounts. Once a scammer works out a password they can easily try it on all of your accounts.

55% of Accidental Deaths Happen at Home: Black Friday Warning to Avoid Unsafe Products 

 
With 55% of accidental deaths occurring in the home, the Royal Society for the Prevention of Accidents (RoSPA) is urging shoppers to prioritise safety this Black Friday. Unsafe products, counterfeit goods, and poor-quality items can turn your home into a danger zone. 

Adding to the concern, threats to breathing—such as choking and suffocation—have increased by 17% in the last decade, highlighting the critical importance of buying safe, reliable products, especially for children and vulnerable family members. 

Adrian Simpson, Head of Policy at RoSPA, said: “Your home should be a safe place, not a hazard. Unsafe products bought during sales can lead to serious risks like choking, fire, or poisoning.

“This Black Friday, prioritise safety over savings to ensure you protect your loved ones and create a safer environment at home.” 
 

RoSPA’s Top Tips for Staying Safe While Shopping Online 

To help shoppers avoid dangerous deals and make informed choices, RoSPA provides the following guidance:
 

  • Prioritise Safety Over Savings 
    While discounts may tempt you, ensure products meet UK safety standards. Research thoroughly, particularly when buying toys, electronics, and household items. 
     
  • Be Wary of Counterfeit Goods and Check for Safety Markings 
    Counterfeit products often fail to meet safety regulations. Always purchase from trusted retailers and ensure that toys, electronics, and other high-risk items display the CE or UKCA mark. 
     
  • Stay Informed About Product Recalls 
    Check the UK Government’s product recall website before buying to ensure the product hasn’t been flagged as unsafe. 
     
  • Be Extra Vigilant with Children’s Products 
    For items aimed at babies or children, buy from reputable retailers and check authenticity and safety labels. Make sure that the product contains instructions. 
     
  • Report Unsafe Products 
    If you receive a product that appears unsafe, report it to the retailer and Trading Standards (contactable through Citizens Advice). Reporting helps prevent others from being harmed. 
     

The Dangers of Unsafe Products at Home 

With more than half of accidental deaths happening in the home, shoppers must make safety a top priority. Poorly made products can lead to preventable accidents, including: 

  • Choking hazards from toys with small parts. 
  • Fire risks from uncertified electrical devices. 
  • Poisoning incidents from unlabelled or improperly sealed household items. 

New powers for banks to combat fraudsters

Banks to be given new powers to protect consumers against scams

  • New rules extend maximum delay for suspicious payments by 72 hours
  • Gives banks more time to investigate and break the spell of fraudsters

Banks will be given new powers to delay and investigate payments that are suspected of being fraudulent, helping to protect consumers against scammers.  

New laws proposed by the Government today will extend the time that payments can be delayed by 72 hours where there are reasonable grounds to suspect a payment is fraudulent and more time is needed for the bank to investigate.  

This will give banks more time to break the spell woven by fraudsters over their victims and tackle the estimated £460 million lost to fraud last year alone.

Economic Secretary to the Treasury, Tulip Siddiq said: “Hundreds of millions of pounds are lost to scammers each year, targeting vulnerable communities and ruining the lives of ordinary people.  

“We need to protect these people better, which is why we are giving banks more time to investigate suspicious payments and break the criminal spell that scammers weave.”

Minister of State with Responsibility for Fraud, Lord Sir David Hanson said: “Fraud is a crime that can devastate lives, and anyone can be affected.  

“That’s why measures like this are so crucial to provide banks the investigative powers they need to better protect customers from this appalling crime.”

Fraud accounts for over a third of all crime perpetrated in England and Wales, making it the most prevalent form of crime commitment in the country. This has been driven by a growing number of purchase scams and the emergence of so-called ‘romance scams’, where victims target vulnerable people and trick them into transferring large amounts of money by pretending to be interested in a romantic relationship.  

The new rules will help protect people against these types of scams by allowing banks up to an additional 72 hours to investigate suspicious payments. Currently banks must either process or refuse a payment by the end of the next business day.

Which? Director of Policy and Advocacy, Rocio Concha said: “This is a positive step in the fight against fraud. While it should not affect the vast majority of everyday payments, it’s important that banks can delay a bank transfer and take action if they think a customer is being targeted by a scam. 

“These measures should be used in a careful and targeted way. Financial firms of all sizes should also ensure they share intelligence and work with the police and other authorities to shut down accounts used for fraud and pursue the criminals behind them.”

UK Finance Managing Director of Economic Crime, Ben Donaldson said: “UK Finance has long called for firms to be allowed to delay payments in high-risk cases where fraud is suspected, and we are delighted to see proposed new laws supporting this.  

“This could allow payment service providers time to get in touch with customers and give them the advice and support they need to avoid being coerced by the criminals who want to steal their money.

“This could potentially limit the psychological harms that these awful crimes can cause and stop money getting into the hands of criminals.”

Banks who have reasonable grounds to suspect a payment is fraudulent will need to inform customers when a payment is being delayed. They will also need to explain what the customer needs to do in order to unblock the payment.  

The need for evidence to trigger a delay will help protect people and businesses from unnecessary payment delays. Banks will also be required to compensate customers for any interest or late payment fees they incur as a result of delays.

HMRC: Warning to Self Assessment customers as scam referrals exceed 200,000

With the Self Assessment tax deadline behind us, HM Revenue and Customs (HMRC) is warning people to be wary of bogus tax refund offers.

Fraudsters could set their sights on Self Assessment customers, with more than 11.5 million submitting a tax return by last month’s deadline. 

Taxpayers who completed their tax return for the 2022 to 2023 tax year by the 31 January deadline might be taken in by an email, phone call or text message offering a tax rebate. These phishing scams are designed to use personal details for selling on to criminals, or to access people’s bank accounts.  

HMRC responded to 207,800 referrals from the public of suspicious contact in the past year to January – up 14% from the 181,873 reported for the previous 12 months. More than 79,000 of those referrals offered bogus tax rebates.  

Kelly Paterson, HMRC’s Chief Security Officer, said: “With the deadline for tax returns behind us, criminals will now try to trick people with fake offers of tax rebates. 

“Scammers will attempt to dupe people by email, phone or texts that mimic government messages to make them appear authentic. 

“Don’t rush into anything, take your time and check HMRC scams advice on GOV.UK.” 

HMRC will not email, text or phone a customer to tell them that they are due a refund or ask them to request a refund. Customers receive repayments into their chosen bank account, and can see any transactions in their online HMRC account and in the HMRC app. 

Customers can help fight phishing scams by reporting any suspicious communications to HMRC: 

·         forward emails to phishing@hmrc.gov.uk  

·         report tax scam phone calls to HMRC on GOV.UK 

·         forward suspicious texts claiming to be from HMRC to 60599 

In the last year to January HMRC also reported 26,443 malicious web pages to internet service providers to be taken down.

This is a 29% increase from the 20,385 referred by HMRC for removal the previous year. These sites aim to deceive taxpayers and steal their personal information or money. 

They copy the design and branding of genuine websites so criminals can trick people into giving away their personal details. This information is then used to access people’s bank accounts or sold on the web. 

HMRC is reminding customers to be vigilant to any potential scam activity, protect their personal information and report any suspicious activity. 

  1. Remember to: fighting scams:  

Protect 

  • Criminals are cunning – protect your information. 
  • Take a moment to think before parting with your money or information.    
  • Use strong and different passwords on all your accounts so criminals are less able to target you. 

Recognise 

  • If a phone call, text or email is suspicious or unexpected, don’t give out private information or reply, and don’t download attachments or click on links. 
  • Check on GOV.UK that the contact is genuinely from HMRC.   
  • Do not trust caller ID on phones. Numbers can be spoofed.  

Report 

  • If you’re unsure about a text claiming to be from HMRC forward it to 60599, or an email to phishing@hmrc.gov.uk. Report a tax scam phone call on GOV.UK.
  • Contact your bank immediately if you’ve had money stolen, and report it to Action Fraud. In Scotland, contact the police on 101.
  • By reporting phishing emails, you help stop criminal activity and prevent other people falling victim. 
  1. On Monday, the Home Office launched its national campaign ‘Stop! Think Fraud’. Backed by organisations across law enforcement, tech, banking, telecoms and the third sector, a new website was created with advice on how to stay safe online. It can be found at www.gov.uk/stopthinkfraud
  1. More information about Self Assessment  
  1. The Self Assessment payment deadline was 31 January, and anyone with outstanding tax to pay should do so as soon as possible. There are many ways to pay, including online, using the HMRC app, by bank transfer, or setting up a Time to Pay payment plan. 
  1. A full list of payment options can be found on GOV.UK. There is also a video on YouTube that explains a customer’s Self Assessment tax bill and the different ways to pay.   
  1. Taxpayers who file or pay late but have a reasonable excuse can appeal penalties on GOV.UK. HMRC has published interactive guidance to explain the process and signpost them to the correct course of action. 
  1. Follow HMRC’s Press Office on Twitter @HMRCpressoffice 

New laws to be introduced to ‘force businesses to be upfront with customers’

  • Fake reviews will be added to banned practices
  • Unavoidable hidden fees cost consumers £2.2 billion every year

Fake reviews, shop labelling and hidden fees that make shopping more difficult and expensive for consumers will all be targeted head on to clamp down on unfair trading practices.

Following a consultation into consumer transparency and as part of the Digital Markets, Competition and Consumer Bill (DMCC), the Department for Business and Trade will officially add fake reviews to a list of banned business practices, outlaw dripped fees that are unavoidable for consumers and ensure that businesses provide clearer labelling for prices on supermarket shelves.

These measures will be legislated for as part of the DMCC Bill as it progresses through Parliament.

Sneaky hidden fees, or dripped prices that are unavoidable will be banned. Drip pricing occurs when consumers are shown an initial price for a good or service while additional fees are revealed (or “dripped”) later in the checkout process.

Research suggests it is widespread and occurs in more than half of providers in the entertainment (54 percent) and hospitality (56 percent) industry, and almost three quarters across transport and communication (72 percent) sectors.

Every year, unavoidable fees cost consumers £2.2 billion, which is why these laws are being designed to ensure online shoppers have a clear idea of what they are spending upfront, to inform them as much as possible and as soon as possible before making purchases.

To make it easier for consumers to compare products and services, fees that are mandatory must be included in the headline price or at the start of the shopping process – these include booking fees for cinemas and train tickets.

Optional fees such as airline seat and luggage upgrades for flights will not be included in these measures.

Minister for Enterprise, Markets and Small Business Kevin Hollinrake said: “From supermarket shelves to digital baskets – modern day shopping provides customers with more choice than ever before. But with that, comes the increased risk of confusion, scams and traps that can easily cost the public more than they had planned.

“Today’s announcement demonstrates the clear steps we’re taking as a government to ensure customers can compare purchases with ease, aren’t duped by fake reviews, and have the sting of hidden fees taken away.”

Reviews were found to be used by 90% of consumers and contributed to the £224 billion spent in online retail markets in 2022, which is why this government is committed to ensuring that the information available online is accurate and fair.

Working with the Competition and Market’s Authority, new guidance will be created in the coming months to tackle fake reviews which will be added to the list of banned practices, with website hosts held accountable for reviews on their pages.

The Price Marking Order (PMO), a piece of Retained EU Law, will also be reformed now ]we have taken back control of our laws’.

The PMO requires traders to display the final selling price and, where appropriate the final unit price (e.g., price per litre/kilogram) of products in a clear way. The EU’s PMO laws were last updated 20 years ago and no longer reflect modern shopping habits.

We will be working with stakeholders and businesses to create new, simpler and clearer guidance for pricing labels that works best for British businesses and improves the shopping experiences for UK customers. This is expected to be issued in the spring.

Our proposed changes will ensure unit pricing is consistently applied, including to promotions and special offers, helping consumers compare products easily and identify what items represent the best value to them.

Small shops that are currently exempt from the PMO will continue to be exempt from those specific measures.

Graham Wynn, Assistant Director, British Retail Consortium said: “The BRC looks forward to continuing to work with officials as practical detailed implementation plans are developed. We are committed to ensuring information given to consumers is clear and they are not misled in any way.“

The UK Government will also be making provision for the PMO in relation to the Deposit Return Scheme so the cost of the deposit is displayed separately on price labels.

In addition to fake reviews and hidden fees, the DMCC Bill will also look at other consumer issues including subscription traps, and will provide the CMA with stronger tools to investigate competition problems and take faster, more effective action, including where companies collude to bump-up prices at the expense of UK consumers.

Lothian MSP calls for vigilance amid spike in insulation scams

A Lothian MSP has asked for constituents to be ‘vigilant’ as reports of insulation scams increase over the winter period.

The calls from Miles Briggs MSP come as reports of home insulation scams are on the rise in Scotland as people try to cut their energy costs, with criminals attempting to exploit this.

The scams are leaving victims out of pocket to the tune of thousands of pounds, with many having to fork out additional money to remove fake insulation such as ‘spray foam insulation’ from lofts and other areas of their properties.

Many victims are lured in by dishonest ‘workers’ who inform them that they are liable to receive benefits and funding from the government while demanding that they pay upfront for the insulation.

As of mid-December 2023, 158 complaints had been received from Scottish consumers regarding insulation scams, a rise of 42 per cent on 2022’s total of 111.

Figures from Trading Standards Scotland suggest that a total of £500,000 has been lost to insulation scams in 2023 from Scottish homeowners, with an average cost of between £4,000 and £8,000 per consumer.

Older people are often the most vulnerable to these scams, particularly when contacted by cold-callers.

Scottish Conservative & Unionist MSP Miles Briggs said: “It is really important that people remain vigilant at this time and look for signs of scammers.

“Unfortunately, many of those involved are highly skilled at deception and can appear incredibly convincing in what they are saying.

“These scams are happening not just in my region of Lothian, but all across Scotland, and are far more present in the cold winter months as consumers seek to limit their energy usage.

“It is important consumers undertake independent research and refrain from engaging with cold callers who offer ‘free’ services.

“It is despicable that bad faith actors are exploiting the concerns of people during a cost-of-living crisis, and absolutely essential that consumers do whatever they can to protect themselves from these criminals.”

January Sales? Take Five!

Remember the #TakeFive advice to avoid purchase scams in the January Sales:

⚠️Be suspicious of any ‘too good to be true’ offers or prices

⚠️Use the secure payment method recommended by reputable online retailers and auction sites

⚠️Where possible, use a credit card when making purchases over £100 and up to £30,000 – as you receive extra protection

⚠️Do your research and read online reviews to check websites and sellers are genuine

#StopChallengeProtect✋☝️👊

#TakeFive

Westminster Committee launches public survey on fraud

The Home Affairs Committee is inviting members of the public to take part in a survey to inform its inquiry into fraud.

The cross-party committee of MPs wants to find out more about the different types of fraud that people are experiencing in the UK. They also want to hear about the impact this has had and what support people have received. 

Fraud is the most common form of crime in England and Wales, accounting for 40% of reported offences and costing UK households over £1 billion every year. It can take many forms including phishing scams, identity theft and romance fraud. Fraud increasing takes place using digital technologies and online platforms; and perpetrators can often be based outside the UK making detection and protection more difficult. 

The quick-to-complete survey consists of multiple choice questions, with the option for people to provide more information if they would like to. Everyone is welcome to take part, but they should note that the Committee is unable to take action on individual cases.  

Launching the survey, Dame Diana Johnson said: “Fraud is the most common form of crime in this country with over 3 million cases recorded every year, and probably millions more going unreported.

“But behind these figures are individual victims of all ages and backgrounds, many of whom will have suffered h long-lasting financial and emotional consequences. 

“We have launched this survey to find out what types of fraud people experience in the UK. The information you give us will help us understand how well current fraud strategies are working.

“It will also help us to learn what gaps there may be in the support that victims of fraud receive, and to identify where improvements can be made.” 

Where to get help

We understand that the issues raised in this work may be sensitive or upsetting. If you have been affected by any of the issues raised in this inquiry, you may wish to contact your GP, local MP or the following organisations:  

Police Scotland – call 101

Reporting fraud and cyber crime | Action Fraud  Call 0300 123 2040 Monday to Friday 8am – 8pm. Action Fraud will guide you through simple questions to identify what has happened and their advisors are available twenty four hours to give you help and advice if you need it. 

Report a scam – Citizens Advice  Support and advice on reporting fraud.  

Samaritans Support and guidance for everyone.  Call: 116 123 – 24 hours a day, every day or Email jo@samaritans.org

Don’t Be Fooled This Summer, warns Metro Bank

A Money Mule Conviction Could Lead to 14 Years in Prison

Metro Bank’s July Scam of the Month is Money Mules. The Bank is highlighting the heavy penalties that consumers will face if they are tempted by the idea of easy money.

“A recent Cifas report[1] highlighted that young people living in London and West Midlands are most at risk of being tempted by this type of crime,” warns Metro Bank’s Head of Fraud & Investigations, Baz Thompson.

“A money mule is someone who transfers money through their bank account on behalf of somebody else and is paid for doing so. “Compound this with the current cost of living crisis and we are anticipating a money mule explosion this summer – largely across social media where money mules are recruited.”

The biggest proponents of money mules are those aged under 25 – possibly because they are recruited via social media – one of the key platforms for this type of crime. It is also concerning that there has been an increase in young people aged 14-18 being approached to use their bank accounts for money muling.

They are offered money in exchange for sharing their legitimate bank account details so scammers can use their account to move money earned from illegal activity. Alternatively, money launderers use their account to begin the process of “cleaning money” to hide that it has come from illegal activity.

The Cifas report also revealed that four out of five people do not realise that, by being rewarded for sharing their personal financial information, they are committing a crime.

At worst, money muling carries fines and up to a 14-year prison sentence; but, even at its best, people who get involved can seriously damage their credit scores. This means they could struggle to get a phone contract, loan, mortgage and even negatively impact any future employment. 

They will also be added to the National Fraud Database, which means they can be denied access to a bank account in the future.

Some people are duped into this illegal activity, so knowing the warning signs can help you identify mule herders and avoid falling for their tricks. 

Look out for 

  • Contact from someone you do not know trying to befriend you – especially online or in a messaging app.
  • Someone you have met online offering deals that sound too good to be true. 
  • Job offers for quick and easy money with no experience necessary. 
  • Anyone who asks to transfer money to your bank account for you to pass on to someone else.
  • Someone who wants to buy a valuable item from you and insists on paying by bank transfer. 

How to help protect yourself

If something sounds too good to be true, it probably is. Here are some tips to protect yourself:

  • Never accept money into your account if you do not know where it is from.
  • Never share your bank details, contact details, or personal details with someone you do not know.
  • If you are job hunting research all job offers and investigate the company behind the offer and stick to well-known sites for job searches – do not apply for jobs that are only advertised on social media.
  • Take a look at the Take Five campaign which focuses on Stop, Challenge and Protect `
  • If you are a parent or guardian, then please raise awareness about money muling with your children to help protect them.

If you have been contacted:

  • If you think you have been contacted by a mule herder, ensure that you stop transferring money. Contact your bank who can help you. You can also contact the police or the charity Crimestoppers online or by calling them on 0800 555 111 anonymously.
  • There is a wealth of information which UK Finance and Cifas have collated and is available at www.moneymules.co.uk

Baz Thompson concludes: “Don’t be fooled this summer and risk your financial future by making some easy money that in the long run could cost you dearly, negatively impact your future, lead to problems applying for any credit and may even curtail your freedom.”

[1] Cifas Money Mule Landscape

HMRC issues scam warning to tax credits customers

HMRC has issued a warning to tax credits customers, who are renewing their tax credits claims, to be alert to scammers trying to steal their information

Tax credit claimants should be on their guard against fraudsters, as HM Revenue and Customs (HMRC) warns of the latest tactics being employed by scammers.

HMRC has issued a new alert, providing details of a number of new scams reported that aim to trick people into handing over money or personal information. Criminals use deadlines – like the tax credits renewal deadline on 31 July – to target their victims and the department is warning around 1.5 million tax credits customers to be alert to scams that mimic government communications to make them appear genuine.

Typical scam examples include:

  • emails or texts claiming an individual’s details aren’t up to date and that they risk losing out on payments that are due to them
  • emails or texts claiming that a direct debit payment hasn’t ‘gone through’
  • phone calls threatening arrest if people don’t immediately pay fake tax owed
  • claims that the victim’s national insurance number has been used in fraud
  • emails or texts offering spurious tax rebates or bogus grants or support

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax scams come in many forms and we’re urging customers to be alert to the tactics used by fraudsters and never to let yourselves be rushed.

“If someone contacts you saying they’re from HMRC and asks you to give personal information or urgently transfer money, be on your guard. Search ‘HMRC scams’ advice on GOV.UK to find out how to report scams and help us fight these crimes.

“Scam messages can be convincing, and individuals may be pressured into make rushed decisions. HMRC will NEVER ring anyone out of the blue making threats or asking them to transfer money.”

Visit GOV.UK for information on how to report a scam or suspicious activity.

According to the National Cyber Security Centre, HMRC was the third most spoofed government body in 2022, behind the NHS and TV Licensing. HMRC is also urging tax credits customers to be alert to misleading websites or adverts asking them to pay for government services which are free, often by charging for a connection to HMRC helplines.

HMRC is currently sending out tax credits renewal packs to customers and is reminding anyone who has not received theirs to wait until after 15 June before contacting HMRC.

Customers can renew their tax credits for free via GOV.UK or the HMRC app. Help and support is available on GOV.UK to help renew tax credits claim.

HMRC has a video explaining how tax credits customers can use the HMRC app to view, manage and update their details:

By the end of 2024, tax credits will be replaced by Universal Credit. Customers who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) telling them when to claim Universal Credit.

It is important that customers claim by the deadline shown in the letter to continue receiving financial support as their tax credits will end even if they decide not to claim Universal Credit.

The government is offering Help for Households. Check GOV.UK to find out what cost of living support individuals could be eligible for.

HMRC is also warning people not to share their HMRC login details with anyone else. Someone using these could steal from the account owner or make a fraudulent claim in their name and leave customers having to pay back the full value of any fraudulent repayment claim made on their behalf.

Find out more about renewing tax credits claims.

WhatsApp ‘family emergency’ scam warning

Online safety is increasingly important, even for popular platforms like WhatsApp. With over 2 billion users worldwide, WhatsApp has become a favourite target for fraudsters and tactics have become more ingenious and effective than ever.

The majority of users are vulnerable when online, making it an irresistible platform for scammers. Cybersecurity experts from VPN Overview have compiled their top tips on how to recognise WhatsApp scams and how to prevent them:

What is WhatsApp fraud (friend or family emergency scam)?

WhatsApp fraud is a form of fraud in which cybercriminals pretend to be a victim’s acquaintance and then ask them for money. Currently, most of those criminals pose as a friend or family member and ask for financial help because “they urgently have to pay a (high) bill” or “they have an emergency and urgently need some money”.

Usually, the perpetrators pretend to be in a hurry, most likely to entice their victims to take immediate action. That is why this type of fraud is also referred to as a friend or family emergency scam. Sadly, on average victims loose thousands of dollars to WhatsApp scams. Age also seems to be a factor, with most of the victims being over 50 years old.

In most cases the phone number used by the criminal to commit WhatsApp fraud is unknown to the victim, yet the attached profile picture is familiar. Consequently, the victim thinks that he or she is indeed communicating with a friend or family member.

However, criminals can easily copy a photo from other social media platforms, such as Facebook or Instagram. The same applies to other information that can be used to mislead the victim. Like the vocabulary an individual may use, or certain events the individual may have posted about online (“Should’ve asked you for help when we were in that bar yesterday…”).

What are the tell-tale signs of WhatsApp scams?

  • Scammer creates a sense of urgency and pressures you to pay quickly.
  • Scammer contacts you from an unknown number.
  • Scammer informs about a number change and quickly talks about money.
  • Poor English is used in their messages.
  • Scammer does not want to be called.
  • Scammer asks for money to be transferred to an unknown account or uses an app that hides account numbers.

Tips to prevent WhatsApp fraud

  • Check if the number is correct if someone asks for money.
  • Check the language and communication style of the message.
  • Call the number or contact the person in a different way to verify the story.
  • Do not let the fraudster pressure you; think logically.
  • Ask the scammer a question only your friend or acquaintance would know the answer to if suspicious.
  • Secure voicemail with a personal code.
  • Never send a verification code without questioning.
  • Set up “2-Factor Authentication” on WhatsApp.

Remember that the tips provided above are not only important to protect yourself. If criminals manage to hijack your WhatsApp account, they can easily scam your contacts and possibly take over the accounts of your friends and family as well. 

I’ve been a victim of WhatsApp fraud, what can I do?

If you have been a victim of WhatsApp fraud, it is important to remain calm and report the incident to your bank and the police.

Depending on the circumstances, it may be possible to reverse the payment, but individuals must act quickly. Wire transfers are harder to recover, and online payment services or apps can complicate the process.

Even if a refund is not issued, the bank will investigate the fraud claim to protect customers and prevent future fraud. Reporting scams to WhatsApp and AnyScam is also recommended, and national help groups for victims of fraud can assist individuals in dealing with the process and preventing future fraud.