While the pandemic has seen many Brits pull together to support each other, one of the more unwanted consequences of recent weeks has been an increase in the number of reported coronavirus scams.
As of 20th March, City of London Police had seen a 400% increase in coronavirus-related fraud, while more than 100 reports have been sent to Action Fraud, the UK’s national reporting centre for fraud and cybercrime, with total losses reaching almost £1 million.
Detective Superintendent Estelle Mathieson, of Greater Manchester Police, said: “There is currently a lot of publicity surrounding coronavirus and it has come to our attention that fraudsters are using what is a time of uncertainty for many and exploiting innocent people out of their hard-earned money.
“It is likely that nationally, scams of this type will rise as the virus situation continues.”
So, what sort of coronavirus scams should you be looking out for?
The government support scam
There have been reports of social media posts and emails that claim you could get a free £258 award from the government or from HM Revenue and Customs (HMRC) to help during the coronavirus outbreak. To claim the grant, you had to complete your bank details.
This is known as a ‘phishing’ scam, where legitimate-looking messages attempt to access your personal details. A government department will never ask for your bank or personal details in this way.
The tax refund scam
Criminals have been sending out thousands of emails which tell you that you’re entitled to a tax refund due to coronavirus.
This is a scam. HMRC will never contact you by email to discuss tax refunds, so don’t click or respond. You should report emails like this to phishing@HMRC.gov.uk when you receive them.
The infection list scam
Fraudsters are sending an email purporting to be from a research group mimicking the US Centre for Disease Control and Prevention (CDC) and the World Health Organisation (WHO).
The message claims to provide a list of local infections, but if you want to see the list you have to:
- Click on a link which will steal your credentials
- Make a payment to an e-currency Bitcoin account
- Open an attachment which will infect your device with malware that will monitor your online activity and capture your information
The National Crime Agency (NCA) urged people not to click links in emails or other online correspondence if they do not know where they have come from. They say that ‘only criminals will try to rush or panic you’ before adding that you should ignore requests made online, especially if they are unsolicited or appear ‘too good to be true’.
Investment or pension scams
Recent volatility in stock markets means that many people are concerned about the value of their pension fund or their investments.
Fraudsters are capitalising on this worry by targeting consumers with emails about pension transfers, guaranteed returns, or high-return investment opportunities.
If you decide to invest in something offering a high return or in a cryptoasset, you should be prepared to lose all your money. Taking your pension could also mean you are hit with a 55% unauthorised payment charge from HM Revenue and Customs, as well as fees charged by the scammers.
Common signs of pensions scams include:
- The use of phrases such as ‘free review’, ‘guaranteed’, ‘take your pension early’ or ‘loophole’
- Claims that you will benefit from better returns
- Offers that are only available for a short period of time
- Unusual, overseas or high-risk investments
How to spot coronavirus scams
With so much uncertainty in the present climate, what can you do to protect yourself against scams and misinformation? Here are some tips:
- Be careful of unsolicited emails, even if they look as if they are from a reputable organisation. This is particularly true currently of emails from the WHO, NHS or the CDC.
- If you receive an email, don’t reply to it. Call the organisation who sent it to check that it is genuine
- Check the grammar and spelling of emails and other messages. Scams are often clumsily written with spelling mistakes or typos
- Is the message addressed to you by name? If not, this is a sign that it is not genuine
- Check the domain the email has come from. Scammers often set up website addresses that look legitimate in order to trick you – indeed security researchers Digital Shadows says that more than 1,400 domains linked to the Covid-19 disease caused by the coronavirus have been registered in the past three months.
There is useful information on the Financial Conduct Authority (FCA) website concerning scams and how to spot them.
Get in touch
If you have seen, or been offered, an investment opportunity that you are considering, talk to your financial adviser first. We can give you impartial advice and help you to make the right decisions. Email admin@stonegatewealth.co.uk or call us on 01785 876222.
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