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The pensioner who lost thousands to cold-calling scammers

lovemoney.com — 2013-05-24T08:30:00+00:00

No one should ever engage cold-calling investment salesmen (invariably male) in a dialogue. Just slam the phone down hard as soon as you hear the boiler room's background buzz. Otherwise, they will catch you, play you, rip you off for as much as they can - and then try over and over again to squeeze you for more.
If you don't believe me, then read about Mrs SJ and her 13 year ordeal at the hands of fraudsters. Despite her long, expensive financial abuse, the authorities have done nothing to protect a vulnerable elderly woman. Her son, who asked for anonymity for the family, sent me her case notes.

Targetting the elderly
She was first approached in June 2000 when she was 72 by Goldman Williams, a fly by night firm which sold her six half cases of wine over the following 18 months. What exactly she was sold is unclear due to a large number of handwritten corrections on her documentation. Goldman (no relation to Goldman Sachs) worked out of a "suite" in a "business centre" - an address which would have caused my alarm bells to ring.

Her last purchases were some £4,000 of wine on 27 November 2001. Two days later, the official receiver was appointed in the public interests to Goldman Williams and associated firm City Vintners in order to wind them up. In all, she spent £8,208.

Two of the six cases were real and were later discovered in a bonded warehouse. They were worth around £3,900 but she had to pay regular storage fees.

Once bitten, twice shy?
It should have been a case of once bitten, twice shy. But that's not how it works. Phone fraudsters know that someone who has fallen for their story will be susceptible to a repeat version. So Mrs SJ was "re-activated" in November 2007 by a firm in Malaga, Spain. The paperwork was meaningless but the money - another £3,500 - was real. This firm changed addresses several times and then disappeared.

Fast forward to September 2012 when the Goldman Williams liquidators sent her an update. Needless to say there was no joy here. But this legitimate letter served as a prompt for someone to call her. Remember, this is an elderly woman living alone.

The caller got her to transfer ownership of the remaining wine in bond to another company, again operating out of a mailbox address. This new concern persuaded her to hand over what seemed to be her wine holding - now apparently worth £4,900 (assuming the wine was genuine), compared with an original spend of nearly £12,000 - in return for carbon credits.

So she exchanged an item of some value for worthless paper in a scheme which is, according to regulators, doomed to failure. This led to a second carbon credit merchant, who informed her the wine was worth £5,400 but - as a goodwill gesture - offered a swap into carbon credits apparently worth £7,650 via an "asset exchange".

It gets worse. Either the wine did not exist or the first "recovery" company stole it, but the second carbon company billed her for the full £7,650. It seems likely that these two companies are acting together to get as much as they can. According to her son, who has power of attorney for his mother, Mrs SJ, who suffers from some memory loss, cannot recall any of this.

Free guides:

From wine to carbon credits to coloured diamonds
The second company then sold her a coloured diamond for £25,000. The coloured diamond market, as readers know, is largely a nonsense. Read The coloured diamonds scam.
In her confusion, she sent three cheques - £25,000, £25,000 and £10,000 - all of which bounced. But the coloured diamond/carbon credit company had no intention of giving up, despite pleas from the son.

The dodgy diamond company's phone number is now permanently "out of order" although the son tracked down an ex-director who turned out to be a 21 year old who begged "don't tell my mum and dad about this job".

The diamond firm's website seems now to be closed. But the guy behind it is already in negotiations to come up with a new one.

Meanwhile, the son contacted the police and trading standards. However, he warns: "It is very frustrating to find out how limited and passive the authorities appear to be in this area of fraud. It would seem on the face of it that, with just a little bit of wit, they could easily get ahead of the game and try to anticipate some of it.

"The internet is making it easy for the fraudsters but, equally, it could also easily be used against them; for example, internet searches on known serviced office addresses and carbon credit/diamond trading etc. I have just tried this for interest sake and several dodgy sites appear immediately. Until I became involved on behalf of my mother, I would never have believed how people carrying out this kind of fraud appear to be able to act with almost complete impunity."

What to do if you're retired and in debt

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Mother guilty of benefit fraud

Press Association — 2013-05-24T07:30:00+00:00

Filed under: Scams & Fraud

A mother of eight has been jailed for four years after being found guilty of fraudulently receiving more than £350,000 in benefits and tax credits by claiming some of her children had disabilities and conditions.

A judge said Amanda Webber, 43, who was responsible for one of the biggest single benefit fraud overpayments recorded, took advantage of the benefits system.

She fooled authorities by making claims on the basis that five of her eight children suffered disabilities and conditions which affected their care and mobility needs, a five-week trial at Brighton Crown Court heard.

Prosecutors said that despite their reputed health problems, the children led active lives, taking part in PE classes and activities including music, drama and dance without difficulties - and some auditioned for ITV's Britain's Got Talent.

Some also attended fee-paying schools and performed in professional productions on television and on stage, including Les Miserables, The Wizard Of Oz and Billy Elliot, jurors heard.

Webber, from Sussex, was found guilty of 23 out of 24 charges, including fraud, obtaining a money transfer by deception and obtaining property by deception. She was cleared of one count of making a false representation.

Webber received an overpayment of benefits to which she was not entitled of around £353,000 over a 12-year period from 1998, and at the time of her arrest lived in a seven-bedroom property.

The false payments related to disability living allowance (DLA), carer's allowance, tax credits and housing and council tax benefit. Sentencing her, Judge Anthony Niblett said Webber and her family had at one point an income of more than £10,000 a month.

The judge told her: "This is an income which the vast majority of your hard-working, honest fellow citizens can only dream of." He added: "These benefits included private education and every material advantage ... including a grand piano and a dance studio in your last home, so as to encourage the undoubted talents of some of your children."

Judge Niblett said Webber was "undoubtedly a highly intelligent woman" who had taken advantage of the benefits system. Prosecutor Andrew Evans said the Crown would look at launching confiscation proceedings against Webber to recover some of the money.

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Mother guilty of benefits fraud

Press Association — 2013-05-24T02:30:00+00:00

Filed under: Scams & Fraud

A woman has been found guilty of fraudulently pocketing more than £350,000 in benefits and tax credits by claiming her children had disabilities and conditions.

The mother, who cannot be named for legal reasons, was responsible for one of the biggest single benefit fraud overpayments recorded, according to Department for Work and Pensions (DWP) officials.
She made claims for benefits on the basis that some of her children suffered various disabilities and conditions which affected their care and mobility needs.

But a five-week trial heard that despite the reputed health problems, the children led active lives, taking part in PE classes and other activities, including music, drama and dance, without signs of difficulties.
Some also attended fee-paying schools and performed in professional productions on television and on stage, including in well-known musicals, jurors heard. Prosecutors said that the acting, dancing and singing required for the roles were inconsistent with the care and mobility described in claims for disability living allowance (DLA).

The woman received an overpayment of benefits to which she was not entitled of around £353,000 over an eight-year period from 2002 and at the time of her arrest lived in a seven-bedroom property. The false payments relate to DLA, carer's allowance, tax credits and housing and council tax benefit.

She denied 24 counts including fraud, obtaining a money transfer by deception and obtaining property by deception but was convicted on all but one count - making a false representation.

Remanding the mother into custody until sentencing on Friday morning, the judge said she would face a "substantial custodial sentence" as he described her as a "very dishonest woman".

The mother shook her head in the dock as the jury foreman returned overwhelmingly guilty verdicts after the jury had deliberated for just over two days.

The judge told her: "You have been convicted by the unanimous verdicts of the jury on clear evidence of serious offences of dishonesty involving deceiving the public purse and the taxpayer of around £350,000 over a period of some 10 years."

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HMRC warns about fake tax credits emails

lovemoney.com — 2013-05-22T11:00:00+00:00

Filed under: Scams & Fraud

HMRC has warned people to watch out for scam emails promising tax credit refunds.

As a major advertising campaign launches to remind people to renew their tax credits, fraudsters are gearing up for a major email assault.

Nearly 22,000 scam tax credit emails were reported to HMRC during last year's renewal period from April to July.

Although the tax authorities worked with other bodies to shut down 147 scam websites, more kept being created. These websites were set up in countries far and wide including Austria, Mexico, South Korea, the USA, Thailand, and Japan, as well as here in the UK.

'Failures' in tax fraud crackdown

The scam
These emails usually promise a tax credit refund. The recipient is then directed to a fake version of the HMRC website and asked to submit their personal details, including bank account information.

Here's an example of one we received.

As you can see, it looks fairly genuine and includes the HMRC logo.

HMRC is reminding people that it never asks for personal or payment information via email.

It's asking anyone who receives a scam email to forward it to phishing@hmrc.gsi.gov.uk

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Warning over Microsoft support scam

Sarah Coles — 2013-05-21T08:06:00+00:00

Filed under: Scams & Fraud

The experts are warning computer users of a scam doing the rounds - where users receive a telephone call out of the blue from someone claiming to be from Microsoft. They then use a variety of techniques, from infecting your computer with malware, to charging you a fortune for help you didn't want or need, or even just asking for your credit card details.

So what should you watch for?

The scams

These scams are not all new, but they have been highlighted by Which, after a number of subscribers contacted them to share their experiences.

In around a fifth of instances, the scammer on the other end of the phone will talk the user through the process of allowing the criminals to gain remote access to their computer. Once they have access, they can infect it with malware designed to steal internet banking and shopping passwords and account numbers.

In about a third of cases victims will be sold worthless subscriptions to support services, and around a fifth are asked directly for their credit card information - either over the phone or being directed to a fake website where the victim enters the details themselves.

Microsoft says that another common approach is to talk you into installing malware yourself - and then charging you to remove it.

It has released a list of the organisations that the scammers are claiming to work for, including Windows Helpdesk, Windows Service Center, Microsoft Tech Support, Microsoft Support, Windows Technical Department Support Group and Microsoft Research and Development Team (Microsoft R & D Team).

Protect yourself

Microsoft stresses that if you are approached by a cold caller, it's best to assume they are up to no good. Do not allow them access to your computer, and do not give them any details or sign up to anything.

They highlight that Microsoft would never call and ask you to pay anything - so if you are asked for payment, hang up immediately.

If scammers call offering a service that you think you need, hang up, and do a separate search for a reputable company offering these sorts of services. Don't be conned by a smooth-talking salesperson.

If you are a victim

Which? says that the average victim is 55 or over, and has lost £75 as a result of the scam.

If you are worried that you may have been a victim yourself, Miscosoft recommends a number of steps to protect yourself, including changing your computer password, the password on your main email account, and the password for any financial accounts, especially your bank and credit card.

You should also scan your computer with the Microsoft Safety Scanner to find out if you have malware installed on your computer, and install Microsoft Security Essentials (this is a free program. If someone calls you to install this product and then charge you for it, this is also a scam.)

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How scammers make thousands from the desperate unemployed

lovemoney.com — 2013-05-20T06:10:00+00:00

Filed under: Scams & Fraud

With unemployment still high, scammers are having a productive time taking advantage of desperate job seekers.

You don't have to be an economics guru to know jobs, even of the minimum wage variety, are hard to find - especially if you are young.

According to the latest unemployment figures there are now 958,000 people aged 16-24 out of work.

But if you are in the scam game, then the desperation of those out of work is a golden opportunity. Phoney employment offers are big business - it's easy to convince an unemployed person to part with cash when you promise well paid work.

Job scams
Citizens Advice knows of 22,000 job scams that have taken place over the past year. But that's just the tip of the iceberg. Many more are unreported because the chances of getting your money back are so low, while there are also all of the scam attempts that are ignored because the job-hunter does not fall for the bait.

One scam targets those looking for employment on free advertisement websites. They search for "marketing assistant" or "finance officer" and are pleasantly surprised when jobs are found, all offering top rates of pay. In some cases this will be £5,000 to £10,000 a year more than they expect.

One dodgy site recently featured a marketing job suitable for a new graduate without previous experience which would provide training in an unspecified number of skills. The exact skills weren't revealed either. This 'job' paid an almost unbelievable - but hugely attractive - £31,000 a year.

How the scam works
Out of work people apply with their CV. A day or so later, they get a response saying that they are a leading candidate for the position and are given a telephone number to ring. This will almost certainly be a mobile phone number.

It sounds good. Only there's a snag. The scamster says the applicant is in a very good place but just needs to polish the CV. And to do that, they need to pay £99. Of course, the job-hunter is not told what is wrong with the CV.

Scam employment firms will push this further by asking personal questions, such as the applicant's experience of job interviews. It does not matter what the answer is, the scam merchant goes on to "strongly suggest" taking an online educational course to improve their face-to-face technique.

It will cover everything, they are told, including what to wear, how to talk and even how to avoid negative body signals. And it only costs a further £399 or so.

It is made clear that the application for this really good job cannot proceed without the CV rewrite and the training.

Taking advantage of the desperate
Why do people fall for this? Obviously, the need to get a job - especially a well paid one - is top of the list. But the work offers appear to come from genuine employment agencies. Often the fraudsters will clone a real site so it has all the appearance of a well-known legitimate site, but change the internet address, perhaps by adding uk to the name or switching a '.co.uk' into a '.net'.

And some are very cheeky. The small print disclaims just about everything, with clauses such as: "We are not an employment agency, employer, or resourcing agency. We do not procure, get, gain or retain jobs, employment, and interviews for our clients. We do not represent clients or guarantee any amount of income, employment for the use of this site."

Scams targeting Facebook double in a year

Turning hundreds into thousands
This scam could cost hundreds. But why stop there? There's an even better employment con which typically brings in around £4,000 from each victim. And that's by offering the course that leads to a great job.

It's no secret that there are skills shortages in plumbing (including central heating and air conditioning) and information technology (both software and hardware). These jobs pay well and enjoy a large degree of security.

So why not offer a course that leads to a recognised qualification in these or other skills?

Teaching these qualifications is not easy or cheap. You need instructors, premises and often expensive machinery for practical learning experience.

Or at least it's normally like that. What scam merchants do is to set up 'at home learning' courses which - and this sounds good - "allow you to progress at your own pace to gain a nationally recognised qualification". All this costs is £3,995 (plus sometimes a £200 registration fee).

Most people looking for work will not have that sort of money at hand. No problem! There are many lenders from high street banks to fringe firms who will offer this cash as an educational loan.

So the victims commit themselves to paying the cash, plus interest, over two to three years.

What do they get in return? The first instalment of the home study course arrives and it's badly photocopied pages from a do-it-yourself manual, all of which is very easy to find elsewhere and much cheaper. The instruction is to complete this within three months and send it off for marking.

You do this once or twice, but you never hear again from the so-called educational company. It evaporates like mist at dawn on a summer's day. It's a ghost company, the address is a mailbox while any directors are either the office girl or boy or a false name.

You've lost four grand. They've run off with the money. Eventually, the learning company ends up in liquidation, but by then it's all too late.

Revealed: the top 10 scams of 2012

More than 12 million pieces of personal information were illegally traded online by identity fraudsters in the first quarter of 2012 alone, according to data from Experian CreditExpert - outstripping the entire of 2010.

The vast majority (90%) of this illegally traded information is password and log in combinations - a result of the spiralling number of online accounts many of us now have. Research shows the average Brit uses around five different passwords online, but with an average of 26 different accounts each – this is nowhere near enough protection.

"Using a different password for each account will minimise risks, but if password information is stolen from a website, all accounts using the same details will be compromised, and this information can spread among fraudsters rapidly," warns Peter Turner, managing director at Experian Consumer Services in the UK and Ireland.

Step up your account protection with this guide to choosing a secure password.
" href="http://www.blogcdn.com/money.aol.co.uk/media/2012/09/9898564.jpg" data-media-id="aol_5267364" data-photo-src="http://www.blogcdn.com/money.aol.co.uk/media/2012/09/9898564.jpg">1. Login detail theft
More than 12 million pieces of personal information were illegally traded online by identity fraudsters in the first quarter of 2012 alone, according to data from Experian CreditExpert - outstripping the entire of 2010.

The vast majority (90%) of this illegally traded information is password and log in combinations - a result of the spiralling number of online accounts many of us now have. Research shows the average Brit uses around five different passwords online, but with an average of 26 different accounts each – this is nowhere near enough protection.

"Using a different password for each account will minimise risks, but if password information is stolen from a website, all accounts using the same details will be compromised, and this information can spread among fraudsters rapidly," warns Peter Turner, managing director at Experian Consumer Services in the UK and Ireland.

Step up your account protection with this guide to choosing a secure password.
Credit and store cards continue to prove particularly attractive to fraudsters and 2012 year has seen 73% surge in the takeover of plastic card accounts by criminals with nearly one quarter of all identity frauds, and 36% of all account takeovers, taking place on these cards.

Richard Hurley, communications manager at CIFAS explains the threat: "Whether it is through using an innocent party's details to open a new account in the victim's name, or hijacking the victim's details and taking over existing accounts, the modern fraudster will continue to pay specific attention to credit and store card accounts as an easy way of obtaining funds and goods, while leaving someone else to pick up the bill."

Be vigilant with your cards and follow our tips to protect your plastic through safe online shopping.
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Credit and store cards continue to prove particularly attractive to fraudsters and 2012 year has seen 73% surge in the takeover of plastic card accounts by criminals with nearly one quarter of all identity frauds, and 36% of all account takeovers, taking place on these cards.

Richard Hurley, communications manager at CIFAS explains the threat: "Whether it is through using an innocent party's details to open a new account in the victim's name, or hijacking the victim's details and taking over existing accounts, the modern fraudster will continue to pay specific attention to credit and store card accounts as an easy way of obtaining funds and goods, while leaving someone else to pick up the bill."

Be vigilant with your cards and follow our tips to protect your plastic through safe online shopping.
As if the mis-selling of payment protection insurance (PPI) wasn't scandal enough, 2012 has seen fraudsters preying on PPI victims. Consumers have received phone calls from someone who knows their name, announcing that they have won their PPI claim. The caller may also know the lender's name and an estimate of the loan amount.

However, the caller will then request a payment from the consumer in order to receive their compensation. This should signal warning bells, but many innocent victims have fallen for the scam and parted with money only for the bogus firm to disappear with their cash, and of course the compensation that never existed.

Consumers should be wary of all cold calls, particularly those that request cash upfront. There is no need to pay to make a claim for mis-sold PPI – you can claim direct to your bank for free and receive free advice from debt charities like Citizens Advice and the Consumer Credit Counselling Service.

If you do choose to take on the assistance of a claims management firm – never agree to an upfront payment. Reputable firms will only request payment for their services once you have received your compensation from your lender either by cheque or by payment into your bank account.
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As if the mis-selling of payment protection insurance (PPI) wasn't scandal enough, 2012 has seen fraudsters preying on PPI victims. Consumers have received phone calls from someone who knows their name, announcing that they have won their PPI claim. The caller may also know the lender's name and an estimate of the loan amount.

However, the caller will then request a payment from the consumer in order to receive their compensation. This should signal warning bells, but many innocent victims have fallen for the scam and parted with money only for the bogus firm to disappear with their cash, and of course the compensation that never existed.

Consumers should be wary of all cold calls, particularly those that request cash upfront. There is no need to pay to make a claim for mis-sold PPI – you can claim direct to your bank for free and receive free advice from debt charities like Citizens Advice and the Consumer Credit Counselling Service.

If you do choose to take on the assistance of a claims management firm – never agree to an upfront payment. Reputable firms will only request payment for their services once you have received your compensation from your lender either by cheque or by payment into your bank account.
Phishing – when an unsolicited email arrives in your inbox requesting details to your personal accounts – continues to rise, leading to a surge in online banking fraud. Online banking fraud losses totaled £21.6 million during January to June 2012, according to CIFAS - a 28% increase on the 2011 half-year figure.

The emails trick customers into visiting fake banking websites – often made to look startlingly similar to the real thing - and disclosing their online banking login details. Online banking customers are also being tricked into divulging their bank login details and passwords over the phone to someone they believe is from their bank but is actually a fraudster.

The key point to remember is that banks will never contact you by phone or email and ask you to disclose your details, so always beware correspondence of this nature. Consumers should also be cautious of emails purporting to be from government bodies such as HMRC, or other financial accounts, such as Paypal.
" href="http://www.blogcdn.com/money.aol.co.uk/media/2012/08/fotoflexerphoto-1345476313.jpg" data-media-id="aol_5221880" data-photo-src="http://www.blogcdn.com/money.aol.co.uk/media/2012/08/fotoflexerphoto-1345476313.jpg">5. Online banking fraud
Phishing – when an unsolicited email arrives in your inbox requesting details to your personal accounts – continues to rise, leading to a surge in online banking fraud. Online banking fraud losses totaled £21.6 million during January to June 2012, according to CIFAS - a 28% increase on the 2011 half-year figure.

The emails trick customers into visiting fake banking websites – often made to look startlingly similar to the real thing - and disclosing their online banking login details. Online banking customers are also being tricked into divulging their bank login details and passwords over the phone to someone they believe is from their bank but is actually a fraudster.

The key point to remember is that banks will never contact you by phone or email and ask you to disclose your details, so always beware correspondence of this nature. Consumers should also be cautious of emails purporting to be from government bodies such as HMRC, or other financial accounts, such as Paypal.
There were over 50 different scams known to the 2012 Olympic Committee, with fraudsters cashing in on the good-natured spirit of the Games and nationwide scramble for tickets. The vast majority of scams took the form of phishing emails – purporting bogus job offers; prize draws; lottery wins and complimentary tickets – all with the sole purpose of duping consumers into sharing personal details or parting with cash in order to claim prizes.

Official tickets for the London 2012 Games were only available for purchase through the London 2012 website and appointed ticketing partners, so any other sources were offering fake or non-existent tickets. As for competition prizes and lottery wins – consumers should remember that it is impossible to win a competition or draw that you did not knowingly enter and that if a prize seems too be good to be true, it probably is.
" href="http://www.blogcdn.com/money.aol.co.uk/media/2013/02/pa-14204382-1360662734.jpg" data-media-id="aol_5635173" data-photo-src="http://www.blogcdn.com/money.aol.co.uk/media/2013/02/pa-14204382-1360662734.jpg">6. London 2012 Olympic scams
There were over 50 different scams known to the 2012 Olympic Committee, with fraudsters cashing in on the good-natured spirit of the Games and nationwide scramble for tickets. The vast majority of scams took the form of phishing emails – purporting bogus job offers; prize draws; lottery wins and complimentary tickets – all with the sole purpose of duping consumers into sharing personal details or parting with cash in order to claim prizes.

Official tickets for the London 2012 Games were only available for purchase through the London 2012 website and appointed ticketing partners, so any other sources were offering fake or non-existent tickets. As for competition prizes and lottery wins – consumers should remember that it is impossible to win a competition or draw that you did not knowingly enter and that if a prize seems too be good to be true, it probably is.
Surely the lowest of the low, charity donation fraud – when fake charities play on our sympathy by requesting donations to a worthy cause – is on the rise. Donation requests come in the form of unsolicited emails; phone calls; house visits or being approached in a public place. In many cases, donation requests are linked to a high-profile event, such as Hurricane Sandy that wreaked havoc across America last month.

Either the charity that the fraudster has asked you to donate to doesn't exist, or they are misusing the name of a genuine, often well-known, charity and pocketing your money.

Don't let fraud risks put you off donating – just make the necessary checks to ensure your money is going to the intended cause. Genuine charities are registered with the Charity Commission and print their registration details on all documentation, collection bags and envelopes, so check these details exist and if in doubt, contact the Charity Commission to confirm that they are authentic. Call the helpline on 0845 300 0218 or check the online charity register by visiting charity-commission.gov.uk.
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Surely the lowest of the low, charity donation fraud – when fake charities play on our sympathy by requesting donations to a worthy cause – is on the rise. Donation requests come in the form of unsolicited emails; phone calls; house visits or being approached in a public place. In many cases, donation requests are linked to a high-profile event, such as Hurricane Sandy that wreaked havoc across America last month.

Either the charity that the fraudster has asked you to donate to doesn't exist, or they are misusing the name of a genuine, often well-known, charity and pocketing your money.

Don't let fraud risks put you off donating – just make the necessary checks to ensure your money is going to the intended cause. Genuine charities are registered with the Charity Commission and print their registration details on all documentation, collection bags and envelopes, so check these details exist and if in doubt, contact the Charity Commission to confirm that they are authentic. Call the helpline on 0845 300 0218 or check the online charity register by visiting charity-commission.gov.uk.
7. Caps on cover
Insurance is an incredibly complex area of personal finance and different forms of cover are riddled with different hitches that make it crucial to read the small print. Failure to do so could lead you to pay for a product you would be never be able to claim upon, or unknowingly do something that invalidates your claim.

Always buy the right level of cover for your needs and pay close attention to any exclusions in the policy wording. For example, many travel insurance policies for winter sports won't pay out for treatment of injuries incurred while under the influence of alcohol.
Cases of cash machine fraud, where a device is used to trap money inside the ATM machine, have increased more than 15-fold in London in the past three months. Reported incidents have risen from 150 across the UK in May, to 2,500 in London alone in August, according to figures from Link and London's Dedicated Cheque and Plastic Crime Unit (DCPCU).

Criminals insert a device called a cash claw behind the guard on the cash drawer of an ATM. The device is undetectable to the public, who use the machine as normal until their cash fails to eject.

"The machine goes out of service and then the criminal comes along, forces open the drawer using a pair of pliers or a screwdriver, forces the device out of the cash machine, bringing the customer's money with it," explains Detective Chief Inspector Dave Carter, head of the DCPCU.

Customers are advised to immediately report any banknotes undelivered from cash machines.
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Cases of cash machine fraud, where a device is used to trap money inside the ATM machine, have increased more than 15-fold in London in the past three months. Reported incidents have risen from 150 across the UK in May, to 2,500 in London alone in August, according to figures from Link and London's Dedicated Cheque and Plastic Crime Unit (DCPCU).

Criminals insert a device called a cash claw behind the guard on the cash drawer of an ATM. The device is undetectable to the public, who use the machine as normal until their cash fails to eject.

"The machine goes out of service and then the criminal comes along, forces open the drawer using a pair of pliers or a screwdriver, forces the device out of the cash machine, bringing the customer's money with it," explains Detective Chief Inspector Dave Carter, head of the DCPCU.

Customers are advised to immediately report any banknotes undelivered from cash machines.
Rogue property developers selling land that they claim has great investment value, when there is little or no chance of it ever being developed, are on the rise again this year. Investigations have lead to a number of convictions in 2012, yet consumers are warned to be remain wary of this big money scam.

Land banking involves plots of land offered for sale, often online, with the promise of sizable returns when planning permission is approved for housing or other development. Yet often the land is located in areas protected from development by planning law.

The companies involved soon disappear with investors' money and as the firms are not protected by the Financial Services Authority, their funds are not covered by the Financial Services Compensation Scheme.
" href="http://www.blogcdn.com/money.aol.co.uk/media/2011/10/standards-of-living-4-netherlands-pa-590mt031011.jpg" data-media-id="aol_4494960" data-photo-src="http://www.blogcdn.com/money.aol.co.uk/media/2011/10/standards-of-living-4-netherlands-pa-590mt031011.jpg">9. Land banking
Rogue property developers selling land that they claim has great investment value, when there is little or no chance of it ever being developed, are on the rise again this year. Investigations have lead to a number of convictions in 2012, yet consumers are warned to be remain wary of this big money scam.

Land banking involves plots of land offered for sale, often online, with the promise of sizable returns when planning permission is approved for housing or other development. Yet often the land is located in areas protected from development by planning law.

The companies involved soon disappear with investors' money and as the firms are not protected by the Financial Services Authority, their funds are not covered by the Financial Services Compensation Scheme.
In October, PhonepayPlus (the UK's premium rate telephone regulator) fined two firms a total of £450,000 for running a series of voucher scams on Facebook.

The scams, which claimed to offer free vouchers and supermarket gift cards for Tesco and Asda, resulted in members of the public signing-up for expensive premium-rate phone services.

The scams relied on Facebook users innocently sharing or liking the voucher promotions on their status, which included the promise of a voucher worth up to £250 for major retailers. After clicking on the promotion consumers were duped into participating in premium rate competitions, which involved questions sent to their phone at a cost of £5 each.
" href="http://www.blogcdn.com/money.aol.co.uk/media/2012/04/13256799.jpg" data-media-id="aol_4953302" data-photo-src="http://www.blogcdn.com/money.aol.co.uk/media/2012/04/13256799.jpg">10. Asda/Tesco voucher scam
In October, PhonepayPlus (the UK's premium rate telephone regulator) fined two firms a total of £450,000 for running a series of voucher scams on Facebook.

The scams, which claimed to offer free vouchers and supermarket gift cards for Tesco and Asda, resulted in members of the public signing-up for expensive premium-rate phone services.

The scams relied on Facebook users innocently sharing or liking the voucher promotions on their status, which included the promise of a voucher worth up to £250 for major retailers. After clicking on the promotion consumers were duped into participating in premium rate competitions, which involved questions sent to their phone at a cost of £5 each.

Warning over Rita Ora booby trap

Sarah Coles — 2013-05-17T05:52:00+00:00

Filed under: Scams & Fraud

When Rita Ora suffered a wardrobe malfunction on stage in November last year, she didn't just accidentally reveal more than she had planned, she also inadvertently increased the risk of you becoming a victim of cyber criminals.

So how does Rita Ora put you at risk?

The scam

Ora is not connected in any way to this scam - other than being exploited by the criminals. The internet security experts at Norton have issued a warning about a phishing site that uses her as bait in order to lure victims into revealing their Facebook login details.

The page has an image of a fake YouTube video in the background, which claims to show the wardrobe malfunction. However, the site prompts you to enter your Facebook details, so you can see the video and 'personalise your experience'.

Once you have entered your details, you are redirected to a real site hosting the video - so you may not realise anything has gone awry. However, you will have given your details to criminals, so they have access to your Facebook account.

Emma Jeffs, Internet Security Expert at Norton, says, "Cybercriminals will often use celebrity scandal as bait in their phishing attacks. We've seen this type of tactic used before, yet thousands of curious internet users can still fall victim."

"This phishing attack prompts users to enter their social media login details. The pop-up window looks convincing and it's hard to distinguish from a genuine page. It goes to show cybercriminals are becoming more sophisticated and we should all continue to be vigilant when online"

Protect yourself

The experts have issued six tips for protecting yourself from the risks.

1. Do not click on suspicious links in email messages
2. Do not provide any personal information when answering an email
3. Do not enter personal information in a pop-up page or screen
4. Ensure the website is encrypted with an SSL certificate by looking for the padlock, "https", or the green address bar when entering personal or financial information
5. Use comprehensive security software, which protects you from phishing scams and social network scams
6.Exercise caution when clicking on enticing links sent through email or posted on social networks

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The scammer who promised I could make money from dog poo

lovemoney.com — 2013-05-16T11:00:00+00:00

Filed under: Scams & Fraud

This well-known scammer's rambling tale covered everything from dog poo to biofuels.

It might have been a bad phone line or perhaps my over-active imagination, but I was sure my cold-caller told me he was from the Camorra, the Naples version of the Mafia.

He wasn't. His organisation just sounded similar - and it wasn't far off the name of one of Japan's biggest investment banks either.

He called himself James P, he had a strong South African accent and claimed to have spoken to me last October. This wasn't true, but then little else over the three subsequent calls I had from him was true either.

A classic boiler room scam

James, who claimed to be in Hong Kong, told me his firm was involved in dealing in "advisory asset management" with a speciality in "alternative energy" and bio-fuels.

"Of course," he said, "I usually deal with corporate and institutional investors." He repeated this several times, never explaining why he was bothering with little old me.

He did however warn me against being a "time-waster", before the line went dead. Had he sussed me out? But no, ten minutes later he called back, explaining he had to take a very urgent call from a massive corporate client - a clever move!

James was a perfect example of somebody that 'works' in a share-pushing boiler room. He asked me about "my investments" and enquired if a "15 to 20% return would be good" compared with my present portfolio.

"A quick question," he said. "If you like it, would £10,000 be a comfortable level for you? Are you liquid for that? We are not looking for large amounts."

He said: "We have a meeting later on today to find out if we have the go-ahead to release this for retail customers as our institutional clients may not want this."

Then James said the investment was a "second generation bio-fuel opportunity".

He asked: "Have you looked into bio-fuels? They are cheaper and cleaner. The company we recommend turns dog faeces waste into ethanol for cars. It costs the UK £20 million a year to clean up canine poo so it is a big market."

He then "wanted to make me feel comfortable" and, apparently forgetting the £10,000, asked me if I could invest £5,000.

"As advisers, it is illegal for us to execute a purchase. So we use licensed stockbrokers in the UK for this."

"Which one?" I asked.

"I don't know which one. We use lots and they are all very busy," was the less than convincing answer.

A secret investment related to the London Olympics!

James called again the next day.

"I've got great news for you. Our corporate and institutional investors have already made 25%. And I am 95% sure we will get the green light to roll out to new investors. We could have a £250,000 block and you could have £30,000. You could be in at the same level as our corporate clients, but I don't want you to get too excited!"

"What's the investment?" I queried.

"I can't tell you the name but it was in the London Olympics and on Sky News. The price will rocket and as the allocations are small, there might not be any left for you."

Ten seconds later, he finally told me the name - it was a "green" company which made electric cars. So it was nothing to do with bio-fuels or dog mess.

"Think Google or Microsoft or Apple. It will make you that sort of money. I shall call you at midday. It is crucial I get hold of you so be sure to be by a phone. "

He assured me "the file will be sent to the allocated broker who will only process the deal when he is happy that I have not coerced you. Then the regulators will allocate a transfer agent. We can't delay even one hour. We are stock market advisers, not one of those brokers who shouts at you over the phone."

Things turn nasty

James phoned back on time. "I'm sure you loved it," he enthused.

I had found the company (it is not quoted) but there were no figures. I asked if I could see a balance sheet or an income or profit statement. After all, without those I wouldn't know what I'm buying.

"These are confidential. You need to understand we have met their board and, as advisers, we only bring forward companies we are confident of. We work closely with the company."

But if they work closely with the company, how could James be an independent adviser?

James obviously did not like being questioned. "Don't shout at me. I am not the reason for your bad investment decisions. You need a licence to see financial numbers and you're just a private investor," he said before putting the phone down.

James had claimed he had been working with the firm for seven years (even though it was only set up in March this year).

I am reliably informed that James P is well known as a boiler room operative and has emerged in previous scams. But while it is not clear whether this is the same James each time or several people using this name, it is very clear that if I had sent off my £5,000, I would never have seen my money again.

Grandmother jailed for £75k benefits fraud

Sarah Coles — 2013-05-15T11:22:00+00:00

Filed under: Scams & Fraud

Kay Wilson, a grandmother from Wetley Rocks in Staffordshire, fraudulently claimed an astonishing £75,000 in benefits over eight years. During that time she had worked in four separate full-time jobs, earning up to £20,000 a year on top of her benefits.

So how was she caught, and is this the most embarrassing way to be found out?

Fraud

According to The Daily Mail, the 54-year-old, suffered three strokes and started claiming benefits in 1993. In 1998 she informed the Department of Work and Pensions that they had rendered her too ill to get out of bed.

However, the Sun reported that in 2003 she had recovered enough to go to work, and between 2003 and 2011 she was earning up to £20,000 a year working full-time. She never told the government about her change in circumstances, and during that eight year period she also claimed £74,769 in disability benefits.

Caught out

She was caught after investigators discovered she was paying National Insurance, and therefore must be working.

Her case was not helped by the fact she had appeared in a 'calendar girls' calendar, posing with nothing but pies and cakes to spare her blushes. The calendar featured the employees of one of the companies she worked for - and effectively exposed her position as a member of staff.

She was jailed for 32 days for benefit fraud.

Most embarrassing

So is this the most embarrassing way to be caught out?

There are plenty of shockers that give her a run for her money.

In March we reported the case of the man who was found guilty of benefits fraud of £20,000. He had claimed he was living with his landlady, but was rumbled after appearing on Gok Wan's show, How to Look Good Naked, supporting his girlfriend.

We also revealed the tale of the man caught swindling the taxpayer out of almost £90,000, after claiming disabilities while working as a gym instructor.

Then, in November last year, a man was caught stealing £100,000 in benefits, after filling in the names of his disability carers in a variety of names - including D Duck and P Shiltern.

And of course there's Caroline Banana, who thought she could continue claiming benefits without declaring a windfall of £95,000 - despite the fact she had won the cash on national TV.

It starts to make the decision to pose in a calendar of employees look relatively wise.

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Beware the UEFA Champions League Final scams

Sarah Coles — 2013-05-15T08:23:00+00:00

Filed under: Scams & Fraud

Security experts at Norton have warned football fans to beware of an increasing number of scams cashing in on the UEFA Champions League Final on 25 May.

So what sorts of scams are doing the rounds, and how can you protect yourself?

Every major sporting event will draw the scammers - hoping to cash in on fans desperate to see their idols in action. During the Olympics hundreds of scams were discovered, and London 2012 had to issue warnings to fans not to fall for them.

The UEFA Champions League Final is attracting its fair share of these scams too - and the experts say they will be stepping up their criminal efforts as the final approaches.

The scams

The scams come in the form of spam emails, hitting millions of email boxes around the world. The first wave surfaced in Italy - offering tickets to the final. There have also been scammers offering packages including tickets, travel and accommodation. Of course, those who fall for the scams will receive nothing in return for the exorbitant fee they pay.

Since then others have surfaced offering tickets to special parties and viewing events linked to the final - around the UK. In some cases these events are fictitious. In other cases, the events are real, but paying the scammers will not get you a ticket - they will just take the money and run.

Symantec, the company behind Norton, has collected a number of email 'subject' lines to be wary of.

These include:
Subject: Watch the UEFA Final like a true Champion
Subject: Who will win the battle of the German giants?
Subject: Spectacular setting for an evening of thrilling sport
Subject: Looking for an exclusive setting for Championship final?
Subject: Where will you be for clash of European Titans?
Subject: Looking for an evening of champion sport?
Subject: Sit back in comfort for Champions League final

Protect yourself

Norton advises football fans to be cautious with unsolicited or unexpected emails relating to the UEFA Champions League 2013 and to not be fooled by fake promotional offers - if it sounds too good to be true, it probably is.

If you want to attend a special event where the final is being screened, then the only way to be safe is to contact the venue direct and order tickets from them. Don't wait for a scammer to come to you.

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Women stole £160k - but only repays £10k

Sarah Coles — 2013-05-09T11:01:00+00:00

Filed under: Scams & Fraud

Caroline Woollen, a 33-year-old manager from Brough in East Yorkshire, admitted to stealing almost £160,000 from her employer - Danish company Nordic Offshore. Most of the money was spent on luxury holidays for her and her boyfriend and designer clothes.

She has been ordered to repay £10,000 - which is all she has left.

The fraud

Woollen tricked her employer - a company that provides workers for the offshore industry - into thinking she had won contacts for the firm. She was given almost £160,000 to enable her to pay workers to complete the contracts. However, she took the cash herself instead.

Hull Crown Court heard that she had spent the money on a number of luxury holidays, in an effort to prevent her boyfriend from leaving her. He eventually left after discovering the fraud.

She also splashed out on designer clothes, which the court heard was partly an effort to impress her millionaire father - who died from a stroke shortly after he discovered her crimes.

The Daily Telegraph reported that the judge described her as having a "Walter Mitty' existence - which included having pretended to attend college to impress her family and compete with her siblings.

The payment

In January Woollen was given a two-year suspended sentence, ordered to attend an alcohol treatment course, and to do 300 hours of unpaid work.

This week, according to the Daily Mail, a hearing was held to discover how much of the money could be recovered from her. In total she was also ordered to repay just £9,240 - which is all she has left. She has no assets left to sell in order to recover more of the cash.

It seems, therefore, that crime pays - as long as you're willing to fritter it all away before the authorities catch up with you.

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Teenager hit by payday loan fraud

Sarah Coles — 2013-05-01T07:49:00+00:00

Filed under: Scams & Fraud

A 15-year-old has been caught up in a payday loan fraud. Student Simon Oliver was setting off on a school trip, but when he tried to withdraw cash at Gatwick airport, his card was declined. It emerged that someone had taken out a payday loan in his name, and the loans company had taken the cash back from his account.

So how could this happen, and should we be worried about this?

Fraud

Wonga had taken £260.54 from his bank account. Oliver, who is now 16, contacted his bank who confirmed he had been a victim of fraud. The approach criminals take is to take out a loan in the name of their victim, and have the cash paid into a fraudulent account - in the name of the victim but which the criminal has sole access to. He then takes the money and runs.

Meanwhile, he has give details of a real bank account held by the victim as the one they will repay from. When the loans company has tried several times to secure repayment, and not seen a penny, it just takes the money back from this second, real, account. This is the first that the victim usually knows about it.

Oliver was just one of the people who has contacted the BBC regarding this crime. The Watchdog programme says that the number of victims it has on record has hit 350 - which is clearly just a fraction of the number of people who have been caught up in this crime.

Worrying

This particular case is worrying because customers of the payday loans firm have to be 18, so although Wonga has a rigorous policy of checks in order to avoid fraud - somehow it ended up giving a loan to someone pretending to be a 15-year-old.

As we reported last month, payday loans have been under scrutiny over their fraud prevention techniques, after increasing reports of fraud. Wonga first featured on the Watchdog programme in August and September last year, where it confirmed its commitment to fraud prevention.

Wonga said in a statement to the BBC this week: "We regret every case of fraud that gets through and, like every major web company, we are committed to cracking down on cybercrime. It added: "As we explained on the show last year, fraud is an on-going challenge and we are continually investing in our anti-fraud measures."

It also emphasised that: "The unique speed of our lending decisions, which are automated using sophisticated algorithms and thousands of pieces of public data, does not undermine their accuracy and our advanced systems catch the majority of criminal attempts. Unfortunately no solution is 100% foolproof but we are never complacent."

Clearly there are still some fraudulent transactions slipping through the net. On the Twitter account @aloadofWonga, seven cases were reported this morning alone. So you need to take steps to protect yourself.

Protect yourself

There are some basic tips which will help prevent all types of bank fraud, such as keeping passwords and PINs safe - and never letting your card out of your sight.

When you give anyone your card details - whether on the phone or online - you should ensure that it's a company you know and trust. If in doubt - don't hand your details over.

You should also check your bank statements very carefully for all transactions you don't recognise, and then shred any old bank statements or letters from the bank before you throw them away.

And you should be very careful if you are contacted by anyone asking for any account details, passwords or account numbers. They may seem bona fide - they may even appear to be your bank - but it's best to err on the side of caution, and refuse to pass on details. You can always phone your bank or go into a branch to check if they need any information from you.

It's a sad state of affairs when we have to suspect everyone in order to protect ourselves - however it's a pretty sad day when 15-year-olds can be victims of bank fraud too.

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Scammers 'cashing in on misfortune'

Press Association — 2013-05-01T05:00:00+00:00

Filed under: Scams & Fraud

Scammers have adapted to the difficult financial climate with phony training and job ploys and dangerous debt help, according to Citizens Advice.

Those who are struggling to find work or battling with money problems have found themselves among the 22,000 scams reported to the Citizens Advice service in England and Wales in the last 12 months.

Many more are failing to report that they have been ripped off, it said.

Citizens Advice and Trading Standards, which is running a scams awareness month throughout May, said opportunistic con artists are offering phony jobs, training and debt scams.
Consumers have reported being asked to pay for a training course with the promise of a job or working on a commission basis only to find the firm is a fake.

Others have been asked for an upfront fee for a loan or help to clear a debt without the money ever appearing.

Citizens Advice said it was also concerned that scammers will seek to profit from changes to the benefit system, particularly with the introduction to the so-called bedroom tax and localisation of council tax benefit.

It said: "Our evidence shows that, in the past, people have been ripped off by fake landlords who take deposits for properties that don't exist or aren't available for rent and rogues have targeted people looking to reduce their council tax bill by charging for rebanding that doesn't happen."

Citizens Advice chief executive Gillian Guy said: "Scammers have never had it so good as they exploit difficult economic times. For most people the recession has been really tough but it's a different story for rogues and tricksters as they've cashed in on other people's misfortune.

"We're seeing people who have been dealt a double blow by losing their job and then losing money while trying to find a new one. This month we are warning people to be on the look out for rogues looking to make a quick buck at their expense and reminding that scams are crimes so it is vital they are reported."

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Five charged with films tax fraud

Press Association — 2013-04-30T10:30:00+00:00

Filed under: Scams & Fraud

Five people are to be charged in connection with a film industry tax relief fraud which cost the public purse around £125 million, the Crown Prosecution Service said.

The group allegedly abused a tax relief that allows investors in the British film industry to offset losses against other tax liabilities in order to cheat the public revenue.

Keith Hayley, Robert Bevan, Charles Savill, Cyril Megret and Norman Leighton will each face three charges - conspiracy to cheat the public revenue, conspiracy to defraud and conspiracy to falsify documents, the CPS said.

Andrew Penhale, deputy head of fraud at the CPS, said: "Following an investigation by HM Revenue and Customs, we have authorised charges against five individuals in connection with a tax relief fraud that allegedly cost the public revenue in the region of £125 million.

"It is alleged that, between January 1, 2002 and July 1, 2011, a tax relief that allows investors in the British film industry to offset losses against other tax liabilities was abused and dishonestly marketed in order to cheat the public revenue.

"The evidence suggests that the value of allowable losses was falsified, that there was a conspiracy to defraud investors and that documents were falsified for accounting purposes."

All five defendants are due to appear at Birmingham Magistrates' Court on June 18.

It comes just a month after jail terms were handed to a gang who pretended to be making a £19.6 million Hollywood blockbuster as part of a complex scam aimed at falsely claiming VAT repayments and film tax credits.

The fraudsters created a chain of companies to make false applications for VAT repayments and claim film tax credits used to encourage the British film industry.

Bashar Al-Issa, 34, of Rodney Court, Maida Vale, London; Aoife Madden, 31, of Maclise Road, west London; Tariq Hassan, 52, of Willingale Road, Loughton, Essex; Osama Al Baghdady, 51, of Lowther Road, Crumpsall, Manchester; and Ian Sherwood, 53, of Esher Drive, Sale, Manchester, all received prison sentences at Southwark Crown Court.

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Deal or No Deal winner sentenced for fraud

Sarah Coles — 2013-04-30T07:05:00+00:00

Filed under: Scams & Fraud

Caroline Banana, who won £95,000 on the TV programme Deal or No Deal, has been found guilty of benefit fraud. The 40-year-old from Whitridge Grove, Bentilee, has been sentenced to 215 hours of unpaid work after fraudulently claiming just over £6,000.

It's a strange tale - but it's not as uncommon as you might think.

Fraud

Banana won the incredible sum on the show in November 2011, but failed to declare it to the Department for Work and Pensions. According to the Mirror, just weeks after the win, and before receiving the prize money, she filled out a form stating that she was not due to receive any money.

She also failed to tell the DWP that she had found work, including jobs at a chemists, hospital and doctor's surgery.

The Mirror has reported that an anonymous tip-off after the show was broadcast lead to the investigation and subsequent trial.

According to the BBC, she claimed the benefits between 28 March 2011 and 13 May 2012, and has admitted wrongly claiming £6,100 in housing and council tax benefits and income support. She also admitted falsely claiming free school meals.

Sentenced

In addition to her sentence, she has been ordered to repay £2,517 to the DWP and £3,794 to Stoke-on-Trent City Council - plus court costs of £350. She has already repaid £1,300, and her solicitor said she would have to sell a £60,000 property in Turkey in order to pay the rest.

District Judge David Taylor said that her decision not to declare the winnings was "a deliberate cover-up". She also chose not to plead guilty until a week before her trial - so only got minimum credit for the plea.

Not alone

It is a peculiar tale. However, Banana is not the only person to have won some money and then run into difficulties over benefits.

Last August, 53-year-old John Anderson from Dundee was jailed after failing to disclose a £100,000 scratchcard win. He was sentenced for fraudulently claiming £6,000 in benefits after winning the money.

Then in October last year, Lawrence Candlish, (a former factory-worker originally from Tyneside) aged 38, hit the headlines, for winning £5 million on the lottery, but after spending it he turned to benefits fraud - claiming disability benefits and not revealing he had moved to Spain.

Then there was Edward Putman, 46 of Station Road, Kings Langley, Hertfordshire who won £5 million on the lottery and applied for benefits ten months later without admitting to the windfall. He admitted to benefits fraud last July and was jailed for nine months.

It seems that sometimes a windfall isn't enough...

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Livingsocial deals website hacked: are you safe?

Sarah Coles — 2013-04-29T08:41:00+00:00

Filed under: Scams & Fraud

Livingsocial, the deals website owned by Amazon, has confirmed that hackers have had access to the account details of 50 million users.

So how did it happen, and what can you do if you are affected?

The details were taken straight from the servers used by the website. The hackers did not get hold of credit card details, but gained access to names, emails, and the dates of birth of some users.

They also accessed encrypted passwords, although the site was keen to reassure users that none of the passwords themselves were disclosed, saying: "We never store passwords in plain text." The site says it has not received any reports of accounts having been accessed - and says that decoding an encrypted password would be difficult.

The experts at Sophos say that decoding the passwords is incredibly difficult, and has to start with a guess. This, they highlight, is why it is so important to make your password something that would be impossible for a hacker to guess.

What to do

LivingSocial has erred on the side of caution and expired all passwords. When users log in they see a message explaining about the hack and the stolen encrypted passwords, and stating: "Although your LivingSocial password would be difficult to decode, we want to take every precaution to ensure that your account is secure, so we are expiring your old password and requesting that you create a new one."

They are also recommending that users change the password on any site they use the same password for.

LivingSocial is also attempting to contact users, warning them of the hack, using the email address on their system. However, it is well aware that there are criminals who would use this as an opportunity to con LivingSocial users.

The website added: "Please note that LivingSocial will never ask you directly for personal or account information in an email. We will always direct you to the LivingSocial website - and require you to login - before making any changes to your account. Please disregard any emails claiming to be from LivingSocial that request such information or direct you to a different website that asks for such information."

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The worst types of holiday fraud

lovemoney.com — 2013-04-23T11:00:00+00:00

Filed under: Scams & Fraud

Last year fraudsters stole £1.5million from holidaymakers. Here's how they did it and how to avoid becoming a victim.

Holidaymakers lost out on a total of £1.5million last year in 1,000 cases of holiday fraud.
The most common, which made up 45% of cases, were websites selling fake plane tickets which customers paid for but never arrived.
Accommodation, luggage and visa applications were also targetted as fraudsters conned holidaymakers out of their cash.

The reseach from the City of London Police's National Fraud Intelligence Bureau (NFIB) also found that men were more likely to be victims of holiday fraud than women.

Holiday fraud
One in three people who reported cases of holiday fraud were scammed when trying to make accommodation bookings. These typically happened when a customer booked a hotel or villa and on arrival found out it didn't exist.

The two key areas for this kind of fraud were Spain and London and the rise of self-catering accommodation, where the owner liaises directly with the traveller, has been blamed for the rise in this type of fraud.

Holiday-goers booking packaged deals are also at risk as fraudsters see them as an easy target.

This often happens when someone books a package deal which includes an event, such as The Ashes, because tickets may be hard to get hold of and expensive. With packages like this people are more likely to be conned because they're desperate to get their hands on tickets.

Another area tourists are getting conned is buying visas. Fraudsters have used the visa system to steal money and private information by setting up copycat websites, especially for the ESTA visa for the US.

Fraud protection
Although everyone is at risk from holiday fraud, men are more likely than women to be victims and it's most common for those aged 30-49 to be caught out.

The main reason for becoming a victim is not doing the proper research before booking a trip. One in ten travellers don't research the travel company they're booking with, according to a YouGov poll for ABTA, and a quarter are willing to pay our £200 or more for a deposit to secure the booking.

The warning today comes as part of a campaign launched by ABTA, Get Safe Online, Action Fraud and NFIB. It's expected the actual figures are much higher than the 1,000 quoted as these are only the figures for the reported cases.

Don't become a victim of the fraudsters
There are lots of things you can do to avoid becoming a victim of holiday fraud.

Do your homework
The number one tool to protect yourself from fraud is doing your homework and researching the companies you're booking with. This will give you an idea if they actually exist and how reputable they are before you arrive. Googling the company and finding an address and phone number is also a good plan.

When booking a packaged holiday make sure the company you've chosen is a member of a trade association such as ABTA or the Air Travel Organisers' Licensing (Atol).

If it is you'll be fully protected should anything go wrong with any part of the package. This will either be through a refund or a holiday rep organising alternative flights or accommodation for you.

Get the right insurance
If you book your holiday independently you have less protection than when booking a package. However, if you have the right travel insurance in place you should be covered if something goes wrong with any part of the trip.

Always check the small print before you buy a policy to make sure you are in fact covered and keep a record of anything you need to pay out for, such as a night's hotel stay, so you can claim this back when you get home.

Read our article - How to get top travel insurance for your holiday - to make sure you're fully covered.

Pay on credit card
Buying anything on a credit card gives you a little more protection if your purchase is worth £100 or more. This is because under Section 75 of the Consumer Credit Act 1974 the retailer and the credit card provider are jointly liable to cover the cash if something goes wrong.

This also counts towards partial payments, for example if you paid £50 in cash and £50 on your credit card. Before you make any payments, make sure the site you're using is secure. It should have a small padlock in the address bar and the address needs to begin with 'shttp' or 'https'.

You can find out more about this protection in our guide The benefits of using a credit card.

Check reviews
Before you set off, or even before you've picked your accommodation or travel, read the reviews. If there is anything dodgy about the company it's likely to have been written about by a fellow traveller so check websites such as TripAdvisor for clues.

If you've had a bad experience - with a hotel you've paid for but then doesn't exist, for example, - make sure you report it and alert to ActionFraud so other travellers are aware and the company can be investigated.

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Cyber attacks hit more businesses

Press Association — 2013-04-23T05:00:00+00:00

Filed under: Scams & Fraud

The number of cyber attacks hitting businesses has soared in the past year, Government-commissioned research has revealed.

The survey showed 87% of small firms - up 10% - experienced a security breach last year and 93% of large organisations had also been targeted.

The Information Security Breaches Survey, commissioned by the Department for Business, Innovation and Skills (BIS), found some of the incidents caused more than £1 million of damage.

Affected companies experienced around 50% more attacks on average than a year ago, with the median number of breaches suffered by large organisations up from 71 to 113 and the figure for small firms rising from 11 to 17.

The Government has increased support for small firms to help them protect against electronic attacks.

The Technology Strategy Board has extended a scheme to allow small and medium enterprises (SMEs) to bid for up to £5,000 from a £500,000 pot to improve their cyber security by bringing in outside expertise.

BIS is also publishing guidance to help small firms make cyber security part of their normal risk management procedures.

Universities and Science Minister David Willetts said: "Keeping electronic information safe and secure is vital to a business's bottom line.

"Companies are more at risk than ever of having their cyber security compromised, in particular small businesses, and no sector is immune from attack. But there are simple steps that can be taken to prevent the majority of incidents.

"The package of support we are announcing today will help small businesses protect valuable assets like financial information, websites, equipment, software and intellectual property, driving growth and keeping UK businesses ahead in the global race."

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Dog thieves marking next victims

Jess Bown — 2013-04-19T08:30:00+00:00

Filed under: Scams & Fraud

Dog thieves are marking their next victims in a new and sinister way; by daubing the letter "K" on their driveways in crayon, marker pen or spray paint, police sources revealed this week.

Families with dogs are therefore being warned to be on their guard should they spot the "K" code, thought to stand for "canine" or "K9", on their properties.
The most recent sightings of the "K" code were highlighted by Cheshire Police officers who are investigating the thefts of valuable dogs that can be sold on the black market for £2,000 each in Alsager in Cheshire.

Cheshire Police Detective Sergeant Chris Pyatt told the Daily Mail: "We have seen these types of markings placed outside houses before. However it would appear that certain groups have started again to use this method of identifying houses that are of interest to them.

"We have had several reports of people acting suspiciously and asking questions to dog owners."

But sophisticated gangs of dog thieves are known to be working in numerous areas across the country, targeting both pedigree dogs to sell to unwitting buyers online and mutts that they can use in illegal dog fights.

According to the Daily Telegraph, an estimated 3,500 thefts were reported in the UK last year - an increase of around 17% on the previous 12 months.

Colin Butcher, of The Pet Detectives agency, which investigates cases of missing and stolen pets, told the newspaper earlier this year that the official figures are just the tip of the iceberg.

"Thefts have gone up because the majority of police forces just do not have the resources to investigate," he said.

"It's also easy to buy and sell dogs on the internet, and prices for some breeds have got so high that buyers are beginning to turn away from traditional breeders."

While many dogs are stolen from kennels and outbuildings, the gangs targeting them are also becoming increasingly bold.

There are increasing numbers of reports of dogs being stolen while out on walks in broad daylight and being taken from inside people's homes during burglaries, with the breeds attracting the most attention including Labradors, Chihuahuas and Cocker Spaniels.

The RSPCA is therefore advising dog owners to ensure that their pets are microchipped and insured, their gardens are secure and that their dogs are monitored while playing outside.

Any suspicious activity, or sightings of the "K" code should also be reported to the police.

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Scams targeting Facebook double in a year

lovemoney.com — 2013-04-18T06:30:00+00:00

Filed under: Scams & Fraud

An increasing number of fraudsters are stealing private information through social media sites like Facebook.

Scams directed at social media sites, such as Facebook, have doubled in the past year, according to Norton Security.
Sharing information via these sites is the number one way criminals can steal personal information which can lead to identity theft.

There has also been an increase of 58% in the past year in scams which target smartphones, the Norton 2013 Internet Security Threat Report shows.

Social media scams
The most common social media scam, which made up 53% of these scams in 2012, targetted people by offering a fake gift, such as a £100 gift voucher.

Victims are encouraged to join a fake group or event with the incentive of a free gift card and at the same time give away personal information. These scams also work by using fake websites which can lead to viruses being downloaded onto a PC or a smartphone.

Often the free incentive is linked to something the person has 'liked' or become a fan of - such as a football team, fashion brand or celebrity. This means they're even more likely to click on it and hand over information to the scammer.

Manual sharing, where someone reposts something to their own site, on their Facebook wall or Pinterest board for example, is the second most common and made up 18% of scams.

Fraudsters are also using fake 'like' buttons on Facebook and copycat plug-in links to trigger malware attacks which then lead to information being stolen.

Although Facebook is the most common vehicle for scam attacks, Twitter, Pinterest and Tumblr have also been targetted.

There has also been a 42% rise in targetted attacks whereby a fraudster finds out personal information such as address, job or interests before sending out an attack.

Mobile phone scams
As mobile phones become more advanced, criminals are finding new ways of stealing the information on them. Last year there was a 58% rise in mobile malware attacks. 32% of all viruses were able to steal information held on a smartphone.

Smartphones have become "powerful computers" and because they're tied to a bank account they are very attractive devices to criminals.

Privacy leaks, which enable scammers to obtain private information and the user's location, are one of the most common types of mobile malware.

The second is premium number fraud which works by a company sending out text messages announcing, for example, a winning prize draw ticket. The victim then replies or calls a premium number to claim their 'prize' but they just end up giving away private information and losing money.

How can I protect myself?
Criminals are now targeting people through social media because it's an easy way to obtain personal information. If you receive a message or an invite through Facebook, for example, you're more likely to trust it if it's from someone you know. But scammers know this and that's why they're using social media to con people out of millions of pounds.

The experts at Norton say they expect social media to be targetted even more in 2013, and especially when it comes to teenagers and young adults who may not be able to recognise threats. This is particularly worrying given that it's now more common for social media sites to be linked with financial accounts.

However, although these scams are on the rise, it doesn't mean you have to be a victim.
If you receive an email or link you think is false on Facebook you can report it by emailing: phish@fb.com. Twitter also lists common scams on the feeds @safety and @spam.

Our article - Don't be a victim of ID fraud - is full of information on how to avoid identity fraud but here I've listed three of the most important things you need to be aware of.

Sharing information
Putting any kind of personal information on a social media site means everyone following you can find out about it. This is fine if it's just your closest friends, but when it's people you've never met before it can lead to problems.

Make sure you regularly check your personal settings, especially on Facebook, so that your information and photos are not being viewed be scam artists.

This is harder to do on sites such as Twitter so be careful not to post anything which will lead to your identity being stolen. Adding a location onto tweets, for example, will show people when you're away from your house.

To make sure your Facebook timeline is water-tight check out our article - Facebook Timeline poses new dangers.

Risky links
If something seems too good to be true then it probably is.

Links offering a chance to win tickets to a sold-out gig, for example, are almost always going to be spam which will either direct you to a copycat website or start downloading malware to your phone or PC.

Only ever accept invites from people you know or follow links from a trusted source. If the company looks dodgy you can always Google it and look for an address and phone number to find out if it exists.

Protect your passwords
This rule is not specific to social media and should be followed for all your accounts.
Don't use the same password for every account you have and make sure they're complicated enough so someone else won't guess them - but also not too complicated that you forget.

Fraudsters often target victims with surveys and use the answers to guess the passwords to their email or bank accounts. Therefore avoid using familiar words which can identify you.

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