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COVID-19 scammers have caused more than 2,000 Britons to lose over £4.6 million, figures published in late May reveal.
These fraudsters have been exploiting the fear and panic of the pandemic to collect money or personal data. According to the National Reporting Center for Fraud and Cybercrime, these scammers are using the internet, telephone calls, texts and even in-person home visits in an attempt to receive funds or personal information to commit identity theft. Action Fraud reports that currently, the number of coronavirus fraud attempts is over 11,000.
Criminals involved in the coronavirus fraud are stealing banking details, as well as email logins and passwords. Many times, this is done by sending phishing emails designed to dupe people into opening malicious links and attachments that enable scammers to take personal information.
While many people are working from home during the pandemic, some fraudsters working the coronavirus scam are exploiting the economic decline by taking advantage of slow networks and IT dilemmas by committing computer software service fraud.
Action Fraud also reports online shopping scams. While people have been forced into quarantine and self-isolation, some have fallen victim to buying online supplies that never arrive.
The current economic downfall is an area of weakness the fraudsters are also targeting. Action Fraud warns that scammers are exploiting financial worries through lender loan fraud. Britons are being cheated out of their cash by scammers who charge an upfront fee for setting up a loan, but the individuals paying the fee never actually receive a loan for the money they’ve put forth.
Another piece of the coronavirus scam puzzle is the so-called pension liberation fraud. This type of scam involves abusing the anxieties about current unstable markets to sway victims to take money out of their pensions.
The Financial Conduct Authority and The Pensions Regulator have analyzed that within 24 hours of being targeted by the coronavirus scam, one could potentially lose 22 years’ worth of savings, averaging £82,000.
In April, The Pensions Regulator, the Financial Conduct Authority and the Money and Pensions Service collectively warned the public to not make any irrational decisions about their pensions.
“We’re urging anyone who is thinking about transferring their pension to check who they are dealing with and only use firms authorized by the FCA,” Mark Steward of the FCA said.
Scammers of the coronavirus fraud are using the fear of the pandemic and economic conditions to victimize investors. Steward also noted the public should reject any unsolicited offers and beware of the warning signs of fraud. Typical efforts of this coronavirus fraud involve captivating people with too-good-to-be-true offers, including high-return investments.
The Pensions Regulator’s chief executive Charles Counsell remarked that pensions are a safe long-term investment, and adding: “It’s important to avoid hasty decisions about cash that’s taken a lifetime to build.”
The Pensions Regulator further comments that it’s working with trustees to ensure investments are protected. Furthermore, TPR, the Association of British Insurers and the Pensions Administration Standards Association are working together to fight the war on the coronavirus scammers.
More than 2,000 online coronavirus frauds have been removed in the last month according to the U.K.’s National Cyber Security Centre. Many of these coronavirus scams have included phony online shops that claim to sell virus-related items, which consumers buy, but the goods are never delivered. Other scams removed by the support of the U.K.’s National Cyber Security Centre are malware and phishing productions.
Criminals have also created fake government websites that ask patrons for donations to the National Health Service. Other fabricated government websites are attempting to gather personal and financial details by pretending to offer tax refunds from HM Revenue & Customs.
Do you believe you have been the target of a coronavirus-related fraud? Let us know in the comments below.
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