Types of Fraud and Scams

Phishing is a tactic used by cybercriminals to trick individuals into revealing sensitive information via email. Typically, attackers will attempt to mimic legitimate organisations, including banks, to appear as authentic as possible and trick people into divulging passwords, personal details or card numbers. Usually, phishing messages will convey a sense of urgency, prompting recipients to act fast without stopping to consider the consequences.

The details obtained via these scams can then be used by fraudsters to set up accounts, transfer funds or purchase goods, leaving the victims out of pocket.

Phishing scams have become increasingly sophisticated over the last few years, so it’s essential you stay vigilant. Before clicking on any links or providing personal information by email, you should always verify the source.

Smishing is a form of phishing that occurs via SMS texts. Fraudsters not only attempt to mimic genuine organisations such as the DVLA, Royal Mail or banks, but they may also impersonate personal connections such as family members to trick people into providing sensitive details or sending money.

These messages will usually encourage people to act fast with urgent requests, such as a need to pay large sums of money before a certain deadline, prompting immediate action which can in turn lead to the theft of personal information.

It’s crucial to be cautious when receiving unexpected text messages. Always verify the sender and avoid clicking on links or providing personal details in response to unsolicited communication.

Vishing fraud, or voice phishing, is a type of scam where criminals use phone calls to deceive individuals into revealing sensitive information. Scammers often impersonate trusted organisations, such as banks or government agencies, and may use tactics such as urgency or threats to manipulate victims.

Vishing calls may claim that there’s a problem with a bank account, prompting individuals to provide personal details or make payments. This is why it’s important to remain cautious and sceptical of unsolicited calls. If the caller is claiming to be from Kent Reliance, you can verify their identity by hanging up and getting in touch with us directly using our official contact details.

Money muling is a fraudulent activity where individuals are unknowingly recruited to transfer stolen funds on behalf of criminals, usually as an act of money laundering to obscure the true source of funds. Mules often receive money into their bank account, sometimes with the incentive of keeping a small amount, which they are then instructed to either withdraw or transfer to a separate account. This allows the scammer to disguise the origin of the funds and avoid detection.

Always be sceptical of unsolicited and unrealistic offers, or opportunities that promise high pay for minimal work – especially if they involve transferring money. If something seems too good to be true, then it probably is.

Romance fraud is a type of scam where criminals create fake identities on dating sites or social media to exploit individuals emotionally and financially. Scammers often build a relationship with their victims over time, gaining their trust before inventing a crisis that requires financial assistance. Victims may be asked to send money for various reasons, such as medical emergencies or travel expenses, leading to significant financial loss.

Be cautious with your personal information, avoid sharing sensitive personal details too soon with someone you’ve met online, and watch for red flags such as individuals who express deep feelings quickly or make excuses for not meeting in person. Most importantly, never send money or gifts to someone who you’ve not met in real life, regardless of the circumstances they present.

Doorstep scams occur when fraudsters visit homes posing as legitimate service providers, such as utility workers or maintenance personnel, to gain access to properties. These scammers often use high-pressure tactics to convince victims to pay for unnecessary services, provide personal information, or allow entry into their homes.

Always ensure you verify the identities of unannounced guests, and ask for identification from anyone who comes to your door. Legitimate workers should carry identification you can verify.

It’s also important to take your time when considering any offers or requests made at your doorstep. Genuine service providers will not pressure you for an immediate decision. And if someone claims to represent a utility company or service provider, get in touch with the organisation directly using official contact details to confirm the individual’s identity.

Investment scams involve fraudulent schemes that promise high returns on investments with little or no risk. Scammers often use persuasive tactics to lure individuals into investing in fake businesses, cryptocurrency schemes, or Ponzi schemes. These scams may appear legitimate, with professional-looking websites, false testimonials, and even pressure tactics to encourage quick decisions.

Always conduct thorough research on any investment opportunity and check for regulatory approval as well as reviews from independent sources. Be cautious of unexpected calls, emails, or messages promoting investment opportunities – scammers often target individuals who have not actively sought out investments. Seek advice from a qualified financial advisor or an investment professional before making any financial commitments.

Call-forwarding scams occur when fraudsters trick individuals into diverting their phone calls to a different number controlled by the scammer. This often involves impersonating a trusted entity, such as a bank or government agency, and convincing the victim to provide personal information or to authorise the call-forwarding process. Once the calls are redirected, the scammers can exploit the victim’s information for fraudulent purposes.

Always be cautious when receiving unexpected calls requesting personal information or Immediate action, especially if they claim to be from a trusted organisation, and never provide sensitive information over the phone unless you are certain of the caller’s identity. Scammers often create a sense of urgency to pressure you into making quick decisions, but you must always take your time to think these decisions through.

On 7^th October 2024, new UK regulations came into force which enhances protection for customers affected by Authorised Push Payment (APP) fraud.  

What is Authorised Push Payment Fraud (APP)?

APP fraud occurs when a fraudster tricks you into sending a payment by impersonating a person or business you trust. Unlike other types of fraud, you authorise the payment, often through Faster Payments or Clearing House Automated Payment System (CHAPS), after being deceived by convincing information. 

What does this mean for you?

If you make a payment using the Faster Payment Scheme or CHAPS within the UK, you may be eligible for a refund if you become a victim of an APP scam. This provides some protection in case you are tricked into sending money to a fraudster.

You may be eligible for a refund if you fall victim to an APP scam and: 

• Made a payment through Faster Payments or CHAPS to a UK account. 
• Submit your claim within 13 months of the final fraudulent payment. 
• The current maximum limit that can be claimed is £85,000.

When making payments you should always be careful. Under the new rules, you are expected to take a level of caution and to follow certain steps to protect yourself from APP fraud, this includes following any advice or warnings provided to you by your Bank or Building Society, particularly when there is an alert that the payment you are making may be to a fraudster. If you believe you have sent funds to a fraudster, you should immediately contact your bank from which the funds were sent.

You can find more information on APP fraud and the new rules here.

Exclusion:

There are some situations whereby you will not be able to claim to get your money back under the reimbursement scheme. This includes if:

• You paid using cash, a cheque, or credit, debit card
• It’s a civil dispute: for example, if you have paid a genuine retailer or business, but you are not satisfied with the product or service you have received
• You have acted fraudulently yourself – including if you have lied or misrepresented your circumstances for financial gain
• It’s a payment you have made to another account that you control
• The payment you made is unlawful: for example, if the payment was for an illegal item
• It’s a payment to and from an account with a credit union, municipal bank or a national savings bank (state-owned savings bank in the UK).