Online safety experts have issued two new warnings about emerging scams that could potentially leave victims thousands of pounds out of pocket.
People booking holidays are being warned to watch out for scammers amid concerns that cost-of-living pressures may push them towards taking more risks with their cash. Holiday fraudsters can lure people into paying by bank transfer using fake but convincing holiday adverts as well as via bogus websites and phone calls.
And another scam is doing the rounds where victims are asked to pay fees upfront for goods or services such as loans that never materialise, according to Lloyds Bank. People with a poor credit history may be particularly likely to be targeted as households feel the financial squeeze.
The number of “advance fee” frauds reported to Lloyds Banking Group by customers jumped by 82 per cent in 2022, compared with 2021. The average amount lost by victims was £711. Although the figure is lower than the 2021 average of £1,194, it suggested fraudsters were attempting to net more victims using lower sums.
Lloyds said its figures suggested people in deprived areas were particularly likely to report being scammed in this way. It matched analysed victim location data against the English Indices of Deprivation. People aged 25 to 34 were the most likely age group to report falling victim, followed by those aged 35 to 44.
Loan fee scams are a particular concern as fraudsters will often target people on low incomes or with a poor credit history, Lloyds added. Victims will typically reply to an online advert for a “fast loan” and are told they must pay an upfront fee by bank transfer.
Once the fee is paid, the fraudster may ask for further payments. Eventually, the victim does not hear from the company again and the loan is never received. In one case seen by Lloyds, a woman was searching online for loans after receiving a bill for car repairs.
She then received an unsolicited WhatsApp message from someone offering her a £1,300 loan without credit checks. She was told that, to secure the loan, she would need to pay the first month’s repayment of £120 upfront via bank transfer, which she did.
Shortly after, she was asked to pay an additional £199 for “payment protection insurance” in case she became jobless. The attempted payment for £199 was blocked by the bank and the person she was dealing with on WhatsApp asked her to send the money to another account.
The woman became suspicious and asked for the initial £120 payment to be returned – but the money had disappeared.
Meanwhile, travel experts were warning against a rise in holiday booking scams. Tony Neate, CEO at Get Safe Online, said: “As the cost of living rises, we want to help protect everyone’s hard-earned cash and urge people to stay alert when it comes to booking a holiday.
“Trust your instincts and remember if a deal looks too good to be true, then it probably is.”
Amanda Cupples, general manager for the UK and Northern Europe at Airbnb, said: “This year, many of us may be eager to save some pennies when booking a holiday, making it an ideal time for scammers to take advantage of those looking to find a good deal.”
Michael Budge, head of Atol at the UK Civil Aviation Authority, said: “Even with the sharp rise in the cost of living, there is a real appetite to travel overseas this year. Deals can seem attractive, but before booking, we urge everyone to do some research to stay travel-savvy and minimise the risk of being scammed.
“Consumers tell us that they think it is important their holiday is protected by Atol and we want people to have peace of mind knowing they will not be left out of pocket if the worst were to happen between booking and travelling.
“Always check it is financially protected by Atol, watch out for hidden extras such as baggage fees and seat assignments, consider paying by credit card if you can and take out travel insurance when you book, as these are all top tips for anyone looking to book a holiday.”
Airbnb also recommends that when using its website, people should check out reviews from other guests and remain on its platform to book, pay and communicate. If someone believes they have been scammed they should tell their bank and the police.
Rising living costs generally may make people more vulnerable to scams as they search for cheaper deals.
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