Case Studies

Online fraud campaign

by Mark Rowe

People looking for love, bargain holiday hunters and those seeking quick and easy loans are among thousands of people targeted by online fraudsters every month, councils warn.

Official statistics show that 17,430 cases of online fraud have been reported across England and Wales already in 2014 – an average of more than 3,000 a month or 100 a day. Online scams were the most common fraud reported in 2013, costing UK consumers £63 million – with the figure likely to be much higher with many scams going unreported.

The Local Government Association (LGA) said council trading standards teams are using Scams Awareness Month to warn of online scams being used by criminals to trick people into giving out personal details or sending millions of pounds over the internet every year.

Scams reported to councils include bogus money lending websites where applicants are asked to pay up-front fees, the selling of fake holiday packages or fake plane tickets. Emails are also circulating informing residents they are entitled to a council tax discount or an inheritance pay-out following the death of a long-lost relative.

Fraudsters are targeting small businesses claiming to be from Google or Facebook offering to improve the companies’ internet search list prominence. The popularity of online dating is also seeing romance-seekers duped by con-artists setting up fake profiles and grooming those thinking they are embarking on a new relationship in order to get money out of them. The LGA, which represents more than 370 councils in England and Wales, is publishing advice on how to avoid being scammed by sophisticated online criminals.

Ann Lucas, Chair of the LGA Safer and Stronger Communities Board, said: “Cunning and opportunistic scammers are increasingly using the internet to con people out of millions of pounds across the country every year. These online crooks are constantly developing new scams to try and cash in on tough economic times by preying on vulnerable people with the lure of cheap loans, cash prizes, council tax refunds or bargain holidays.

“Online fraud is now the biggest type of fraud with thousands of people reporting scams each month. Council trading standards teams work hard to raise awareness and give advice to people on how to protect themselves from being duped online. We see first-hand the often devastating impact that these criminals have on the people they con.

“We all need to be aware of the dangers of fraudsters using the internet to set up fake websites, send out spoof emails or set up dating scams to ensnare unsuspecting victims. If a deal seems too good to be true, it usually is and people should never be embarrassed to report falling victim to a scam. It could help prevent their friends or family also suffering at the hands of scammers and raises vital awareness of new cons surfacing online.”

Case studies

Nottinghamshire County Council has received complaints about a number of websites offering free membership to a range of loan and credit card providers at no cost but requiring them to input their bank details. When customers sign up to the website via its terms and conditions they permit their bank details to be shared with other companies. One resident ended up seeing around £500 taken from her account by numerous loan companies.
Manchester City Council is warning start-ups and other small businesses in the city to be wary of individuals claiming to be acting on behalf of Google or Facebook and promising to get the companies’ listings greater prominence. The fraudsters ask up to £300 for this service, before simply contacting Google listings to ask for the company’s details to be promoted – something which businesses can do themselves for free.
Reading Borough Council is warning about emails circulating telling residents they are due a council tax refund and asking them to send back their bank details so that the payment can be made.
Essex County Council reported an online scam which saw a woman lose money after ordering a ‘free’ cosmetic sample on the internet. She paid online for the postage and packing and then found that a further two payments of over £200 had been taken from her credit card for regular supply of the cream.
Sandwell Council saw a resident lose £7,000 to an online ‘virtual car’ scam. The scam works by the advertisement of a car on pre-owned websites with the consumer asked to make a payment through a false payment service. After being told there is a problem with the initial payment, people are pressured into paying the outstanding balance into another account immediately or the sale will be cancelled.

Visit: http://www.local.gov.uk/

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