As we enter into our 8th month of coronavirus restrictions, the number of scams and fraudulent activity concerning COVID-19 is on the rise. Most scammers are taking advantage of people working from home by posing as clients or suppliers seeking payment.
Often, the scammers will make contact by phone or email to ask you to disclose personal and financial information. Accidentally providing the scammers with this information can lead to identity fraud, theft of funds from bank accounts, and the application for loans or credit in your name or in the name of your business.
Many people use the same login information, usernames, and passwords, which makes it easy for fraudsters to gain access and utilise your data.
How can I avoid COVID fraud?
Here are some practical tips to help you avoid COVID fraudsters:
- DO NOT click on any links when you are not 100% certain of the source.
- NEVER disclose usernames, email addresses, passwords or personal information in an unsolicited call from a third party.
- If in doubt you should hang up and call back using an official number, e.g. your bank contact centre, HMRC support lines, or your internet provider.
- If you believe you have been the victim of fraud, change your passwords immediately and contact your bank, HMRC, etc., and report it.
COVID scams to look out for
Many coronavirus scams are relatively easy to spot; however, there are a few scams out there that might catch you off guard. There are several ways coronavirus fraudsters may attempt to scam you, including:
1) Offers of grants for businesses and the self-employed
Coronavirus scammers will contact you offering false promises of business grants and grants for self-employed people. One example of such a scheme was the fake COVID-19 ‘crisis grant’ providing support of up to £1,500. These scams can look convincing so be sure to check the official gov.uk website for the correct information available to support you.
2) Fake HMRC emails
Scammers may send you emails that look as though they are from HMRC telling you that you are due a COVID-19 related grant or tax refund. Usually, these emails will request that you click on a link where you have to supply account details and passwords for your bank account. HMRC will never send you an email of this type they will send you an official letter to contact you regarding any information of this type.
3) Fake internet and broadband phone calls
Scammers often make phone calls allegedly from internet and broadband providers telling you there is an issue with your service. They’ll ask you for your account details, login information and password to resolve the alleged problem. Unfortunately, since the coronavirus pandemic, fake internet calls are on the rise. This is with the attempt to capture non-suspecting homeworkers.
Be wary of providing this information to a caller if you are in doubt of their authenticity. Never install any software or allow remote access to your computer as a result of one of these cold calls.
4) Calls that appear to be from your bank
Fraudsters may call you pretending to be your bank and asking you to transfer funds. In many cases, the phone call is automated, claiming that a suspicious transaction has taken place on your account and needs to be verified. You will then be put through to the fraudster who is imitating a bank employee in an attempt to uncover your confidential account information.
5) Fake Bounce Back Loan applications
Lots of businesses have already applied for the government’s official coronavirus Bounce Back Loan scheme, and many fraudsters have seen the opportunity to take advantage. According to the National Audit Office (NAO), taxpayers could lose up to £26 billion paid out in Bounce Back Loans to fraud, organised crime or default.
Fraudsters will apply for the loan in the name of your business by third parties. Many of their victims will have no idea that their names and information have been used until the repayment letters begin.
6) Emails offering council tax reductions
With so many coronavirus support options available, hackers are trying to capture unsuspecting individuals with false council tax reduction emails.
You may receive an email from a scammer posing as the government offering council tax reductions. When you click on any link in these emails, the fraudster will harvest your personal and financial information.
7) Fake COVID adverts
Since the pandemic began, there has been a massive surge in misleading and false ads promoting coronavirus cures and treatments. Many scammers are advertising for COVID related products such as medical-grade masks that, once paid for, never get received. Be sure to do your research when considering purchasing coronavirus-related products – if it sounds too good to be true, there’s a chance it probably is!
For the latest information and updates on coronavirus check out our blog.
