How to protect against fraud this Diwali
UK Finance, the UK’s trade body for the banking and finance sector, found that the pandemic has ripened the environment for fraud and that fraudsters are increasingly evading banks’ security systems and targeting individuals directly through phishing emails, spoof phone calls, fake delivery package texts and impersonating trusted organisations like the NHS, the police and the government to ask people to provide their personal and financial information.
In fact, the four most common scams this year are email scams, online dating scams, online shopping scams and social media money flipping scams, says Danielle Treharne, EMEA Director (Send Markets) at WorldRemit, a global payments company. “Email scams are the most common type of scam you can find,” she says. “Most of the email scams impersonate emails of legitimate institutions like the UK Government website or HMRC. Usually scammers play on emotional triggers such as being late on a payment or owing a large sum of money, which can be ‘easily’ solvable by clicking on the link provided to make a payment.”
“Online dating scams often involve a fake profile, where scammers might express strong emotions for you in a relatively short period of time and once they’ve gained your trust, they’ll ask for money and gifts, even your banking/credit card details,” she elaborates. ‘'People should also look out for online shopping scams such as overpayment scams where scammers ask you to ‘refund’ an overpayment before you realise the credit card has been stolen or a payment receipt is fake, and money flipping scams that are becoming increasingly popular on social media, and promise quick money if you invest.”
Last year, fraud across payment cards, remote banking and cheques equalled £783.8 million but banks and card companies were able to £1.6 billion in unauthorised fraud, according to UK Finance. This equates to £6.73 in every £10 of attempted fraud that was stopped.
With many in the diaspora sending money back home during Diwali, the festive period puts many people at greater risk. Danielle advices looking out for signs like “someone giving a sense of urgency and asking you to act immediately. It’s okay to ignore or refuse requests for funds. Only criminals will try to rush or panic you.”
She also says, “hooks such as 'invest and we'll give you a 10x return' are commonly used. "Money flipping" scams are increasing on social media, but as a general rule, if it sounds too good to be true, chances are that it probably is.”
She advises this simple 3-step process to help avoid online fraud:
Stop: Take a moment to think before sending money or providing any information.
Challenge: It’s okay to ignore or refuse requests for funds. Only criminals will try to rush or panic you.
Protect: Contact your bank immediately if you think you’ve wired money to a scammer and report it to the relevant authorities.
“If you have any doubts about who’s asking you for money, or why you’re sending it, don’t make the transaction,” Danielle cautions. Even if you are sending money to loved ones, if you’re doing it for the first time, sending money overseas may seem like a daunting task. “The best way to stay safe and avoid money transfer scams,” Danielle says, “is to be educated and informed before making any decisions in regards to money transfers, be it big or small amounts.” To aid with that, she advices:
Downloading apps only from reliable sources: always use a reliable money transfer company that is verified and recognised by local and international financial services authorities.
That speed is of the essence: Select a service that ensures your money reaches its intended destination quickly and safely.
And staying informed: Check if the platform has a 24-hour customer care service that is operational.
If you are concerned about staying safe year round, below are Danielle’s tips for avoiding the four most common scams (in email, during online dating, during online shopping and impersonation).
Tips for avoiding email scams:
Don’t click on links or open attachments in an unsolicited email
Check the sender’s email address matches the website address of the organisation it says it is from
Be wary if the email doesn’t use your name and says something like ‘Dear customer’
Avoid emails with a sense of urgency, asking you to act immediately
Beware of emails with poor grammar and spelling mistakes.
Never share personally identifiable information with someone who has contacted you unsolicited. This includes banking and credit card information, your birth date, and Social Security/ Social Insurance numbers
Keep your devices updated with antivirus software to protect yourself from any malware.
Tips to avoid online dating scams:
Don’t trust those asking for you to share money, gifts or your bank account/credit card details
Use social media channels and online to see whether their dating profile is consistent with their other online profiles
As a general rule, we advise that you shouldn’t send money to someone unless you have met them in person or via video.
Tips for avoiding online shopping scams
Make sure that the website has ‘https’ in the URL (the extra ‘s’ is for ‘secure’) and a small lock icon on the address bar. Even then, the site could be unreliable
Read reviews about the quality of the merchandise, and make sure you’re not buying cheap and/or counterfeit goods
Check on the website for a clear refund policy and method of contact should you have a customer query
The website should not include an option to use an IMT to make the payment.
Tips for avoiding impersonation scams:
Don’t accept friend requests from people you don’t know and have never met
Don’t share your password with others
When logging in, use two-factor authentication
Avoid connecting to public and free Wi-Fi networks
Keep your browser and apps updated
Add an additional layer of security and use proactive cybersecurity software.
