Cost of living scams: How to spot ‘fraudsters’ and avoid being targeted by scams | Personal Finance | Finance
Be warned, quite a few cost-of-living scams are doing the rounds as fraudsters try to take advantage of people trying to save money or make a bit extra and cope with rising costs. The crisis is also a breeding ground for scammers and fraudsters looking for ways to exploit the financially vulnerable.
Four scams to watch out for
Insurance:
One is the fake insurance scams where motorists may be tempted by supposedly cheap insurance deals – particularly young drivers, who often pay more for their insurance and may be inexperienced at buying cover.
‘Ghost brokers’ pretend to be genuine brokers offering car insurance.
Policies are bought through legitimate companies but using false information which is then doctored and sold on. It’s often only when someone claims that they realise the policy isn’t valid.
It’s always best to check a broker’s status on the Financial Conduct Authority or British Insurance Brokers’ Association websites or contact insurers directly.
READ MORE: Energy price cap: What is it, how does it work, and what does it me?
Universal Credit:
People on low or no incomes often are receiving Universal Credit to make ends meet. But the scammers are right in there too, chasing the money.
One way Universal Credit scams are done is when residents are approached by individuals, through doorstep cold calling and even brazenly standing outside Jobcentre Plus offices, offering a “Government grant” or “low-cost Government loans for a small fee”.
They get enough information from victims to make an initial Universal Credit claim and request an advance payment and they keep most or all of it.
Sometimes victims are not even aware they’ve placed a Universal Credit claim until their existing ‘legacy’ benefit stops.
Worse still, then they have to repay the loan that they never had. Those affected have reported being approached by well-dressed individuals, carrying what looks like official ID.
Energy bills:
With the crazy increases in energy bills, scammers are preying on people looking for cheap deals.
The scammer presents a ‘special’ rate that needs an upfront payment that the victim hands over, only to find that they have lost their money with no electricity or gas provided.
Council tax:
Many other scams have their roots in the cost of living crisis as people look to make savings.
They include scams that look like they might save council tax payments.
Scammers, pretending to work for the Council, phone residents and claim they are from the Council Tax team.
They then inform residents that they have overpaid their Council Tax and offer a refund.
The scammer then requests bank details with the promise of a refund for the alleged overpayment. But of course, the scammer uses the bank details to steal money from the victim.
Act now to be safe online
So, with these ever-increasing scams doing the rounds, how can you best stay safe online. Here are five quick things you can do:
- Many people, as many as 82 percent, reuse passwords on multiple sites. Don’t do it!
- You are much safer to use different passwords for each site. To help, use a ‘Password Manager’ app for added security.
- Clean up your data footprint by deleting your data from those that don’t need it. Rightly Protect allows you to request data deletions to as many companies as you like for a single click and for free.
- Keep your software up to date. Old and outdated software is vulnerable to hackers and cybercriminals as updates keep you safe from exploitable holes in your programmes or system.
- Always log out of a computer. This is very important because where anyone can use a public computer when a previous user is still logged in to an account, it can leave them vulnerable.
- Beware of phishing attacks. Phishing is a type of attack used to steal user data, including login credentials and credit card numbers. It occurs when an attacker, masquerading as a trusted entity, dupes a victim into opening an email, instant message, or text message.
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Scambusters Mail bag – answering your scam niggles (Reader questions)
Q1. Should I worry about my kids’ data when they study online?
Scambusters say: “It’s very important that parents take care of how much information children share online.
“A Human Rights Watch report published recently found that many countries did not protect children’s privacy well enough.
“The report says that 89 percent of education products seemed to use data practices risking or infringing children’s rights.
“In many cases, the products harvest personal data such as who the children are, where they are, what they do in the classroom, who their family and friends are, and what kind of device their families can afford to use and so on. All without consent.
“In addition, many of the educational platforms use tracking technology that follow children outside of school.
“In many cases, the children’s data is sent to advertising technology companies who use it to create behavioural advertising, risking distortion of children’s online learning experiences and impacting their opinions and beliefs in a way that could lead to manipulation.
“GDPR legislation contains provisions aimed at enhancing the protection of children’s personal data and to ensure that children are addressed in plain clear language that they can understand.
“Companies are urged to create ‘privacy by design’ and to take the child’s age into account in that design.”
Tip of the week
Don’t use the same password on multiple websites or apps. Use a different username and password combination every time. It’s helpful to use a reputable ‘password manager’ app to help you do this.
Remember: If you’ve received a text you think is a scam then you can forward to 7726 or take a screenshot and send it to [email protected]. If you are receiving lots of unwanted phone calls or text messages you can also consider removing your details from data brokers, ensuring that you use a right to object to processing of your data. You can learn more about this on Rightly to stop the sharing of your data exposing you to scams. And you can take a free training course on how to fight against scams on www.friendsagainstscams.org.uk.
