71 Per Cent Growth In Frauds In the UK During the Pandemic

Over £4m was defrauded by individuals in the first half of the pandemic year; as such, crimes grew 71 per cent, where less than half of the loss was refunded by the banks. The banking trade body claimed many young con artists bought fraud kits online, and overall, £754m was stolen, which increased by 30 per cent compared to the same duration in the previous year. 

The cases of authorised push payment (APP) fraud, where customers assume they are paying to authentic sites, grew 71% to £355m. Such transactions have increased, and it reported losses by banks and credit cards. Romance and investment frauds increased by 62 per cent and 95 per cent, respectively.

The bogus schemes may be related to the delivery of text messages, or the fake imposters want payments for dubious penalties or taxes related to house purchases or postal transactions. For example, many received texts from tricksters who pretended to be from Royal Mail or DHL, and they asked for payment for the delivery of a non-existent package. 

As a result, the regulatory agencies asked the banks to create a central pot for repayment. Furthermore, the negotiations regarding the scam loss declined earlier in the year. 

The advertisements on various platforms posted by people pretending to be representatives from reputable financial institutions attract new targets to such crimes. Therefore, the regulatory agencies ask for coordinated actions and greater government efforts to tackle such threats. 

Many have lost money to dubious job offers on social media platforms. Some victims claim that the offer to work from home during the lockdown was attractive, and the job offer in sales or customer services could not be suspected. The hiring process appeared reliable, where the person gave an interview, and the interviewers offered links to some website pages. 

They were asked to complete the registration form and pay a discounted minimal rate to join the company. Later, the victim is redirected to a website asking visitors to sign up for a free trial. They offer free trials, but the billing concerns free trials, which resume even after registration cancellations.  

Multiple errors in the site may ask the victim to sign a contract, say you must be 18 years or older, and then allow people under 16 to register seeking payment through bank or wire transfer, which indicates counterfeit action. 

Some sites are very simple like they offer jobs where you will have to work as a customer care executive, and you get paid £10 an hour. Such adverts appear lucrative during the lockdowns, but those who fell for it had terrible experiences. 

Banks and fraudsters have found organised criminals and teenagers without conviction operating from their homes. Children as young as 14 years are asked to work as money mules, where they have to approve the transfer of stolen money in their accounts while getting some commission for holding the funds. 

Some criminals seek transactions in illegitimate digital currencies like crypto assets to move funds away from the sight of authorities. 

Over 50 per cent of such crimes originate through online platforms, including social media and technology sectors. The authorities question the company owners to identify and prevent such crimes. The administration wants to increase coordination between banks and technology to implement the latest tools to identify fraud. 

They are raising consumer awareness to stop them from falling for such options. The customers have been asked to be careful and not divulge details like the security keys of the online or telephone accounts. 

The pandemic exacerbated vulnerabilities to security risks created by unemployment during the lockdowns, which forced people to lower their guard. 

Who Is At Higher Risk?

Male victims have lost more than twice to such deals compared to females (Royal London data). The survey on 18+ found 29 per cent lost money to such frauds in the previous year. 

Although the number of cases has increased recently, many victims do not report suspicious activities, leaving them and others susceptible to fraud. 

How to Protect Yourself?

People who have been scammed should frequently change their online accounts' passwords, security codes, and PINs. 

If you have suffered any fraud, report it to the relevant authorities to prevent similar activity from happening again. In addition, it generates awareness about it to help others identify the patterns.