Benefits claimants have been issued an urgent warning about new scams that could see their finances and personal information stolen by criminals.
Fraud prevention service Cifas has urged people applying for money from the Department for Work and Pensions to remain vigilant as new Universal Credit and disability claimants are reportedly a prime target. People paying Council Tax have also been warned to keep an eye out for fraudulent emails and text messages.
As reported by the Daily Record, some scammers are also claiming to be employees at a law firm pretending to be chasing debts that are non-existent. The new scam warnings follow the news that HM Revenue and Customs (HMRC) had warned everybody who has a UK Government Gateway account to be careful about giving away their login details.
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Here is a roundup of the latest scams to be aware of.
Impersonating UK Government Departments for Financial Assistance
Criminals claiming to be workers at the DWP and related organisations are going after Universal Credit and Personal Independence Payment (PIP) amid the worsening cost of living crisis. Fake Council Tax refunds and energy bill rebates are also commonplace,
Cifas has urged anybody who receives such an offer to seek out help from legitimate sources like the GOV.UK website, and follow official guidelines for claiming financial assistance.
Energy Payments
Multiple cases have been reported of people receiving fake emails and text messages claiming to be from a legal company seeking outstanding payments for an energy company. With around 40 energy companies going out of business in the last year, this scam is believed to have expanded to other energy companies whereby a request for payment is demanded to settle outstanding debts.
Cifas has issued a reminder to stop and consider whether you should be giving out your personal or financial information before doing so. People have been told to hang up if they receive a call such as this, and get in touch with the organisation they are claiming to be from using a legitimate phone number.
Criminals abusing personal details to commit tax fraud
According to HMRC, criminals are getting in touch with people over social media and attempting to get them to hand over their personal tax information. Scammers then use these legit details to apply for fraudulent tax refunds and offer to split the funds.
In cases like these, the money that the criminals keep may be used to bankroll further crimes. There is also a risk that the scammers may attempt to blackmail people afterwards, or even make use of their personal information to carry out identity fraud.
Research by Cifas has discovered one in 13 adults in the UK admitted to taking part in first-party fraudulent conduct in the last 12 months. Taking part in such a first-party or second-party fraud scheme is illegal and those caught doing so could face serious consequences.
Commenting on the latest risks to consumers, Cifas’ Head of Fraud Intelligence, Amber Burridge, said: “Criminals are exploiting the public by using techniques designed to catch victims while their guard is down. By focusing on individuals who are financially struggling or trying to urgently assist those in need, they hope potential victims will be less likely to undertake checks to ensure the legitimacy of requests."
She added: "I encourage anyone handing over their personal details, financial details or money to take a moment to stop and think before doing so. Consider if there are any additional checks that can be completed to ensure who you are dealing with is genuine.”
