Fraud

1) "Email Hack" Fraud 

An email appears to arrive from a firm you’ve hired – a solicitor, conveyancer, builder or supplier, say – and tells you about a change to its own bank account details.

However, the fraudster has intercepted or ‘hacked’ your email trail and created a bogus message. When you come to pay, your money goes into the fraudster’s account instead. It’s also known as ‘invoice fraud’.

How it could happen to you

• You receive what looks like a genuine email from a firm you’re currently dealing with – for example, your solicitor or conveyancer if you’re buying a home, or a known supply firm or repair company if you’re a small business.
• It alerts you to a change to its own bank account details. It will explain that there’s been a small update to its financial details so when you pay for its services, be sure to pay into the ‘new account’.
• The email is not a complete surprise since you’re a customer about to pay for goods or services, so its message won’t seem unusual or out of character.
• When you pay into the new account, your cash is actually sent to the fraudster’s account – from where it’s usually quickly moved on, making it difficult to get back.
• You only realise the fraud when the firm you thought you had paid calls you to ask where the money is.

Stop and think

If any firm or service company you’re using tells you it’s changing its bank details for payments, always confirm it directly with a member of staff. You can do this by telephone using their normal number or by visiting them in person if it’s possible. Fraudsters can often intercept email exchanges and alter them to appear genuine, so don’t use the contact details you see in such an email – double-check on the company’s official website or documents.

If you’re paying a firm for the first time, you can first transfer a small sum – and then confirm with the company, again using known contact details, that it’s arrived.

2) Investment Fraud

‘It really is a great opportunity, a once-in-a-lifetime chance – what do you have to lose?!’ A lot of money is the answer. Fraudsters posing as sales staff get in touch to offer ‘opportunities’ to invest your cash in everything from shares, gold and plots of land, to more exotic offers such as carbon credits or vineyards. The investment is fake, though, and leaves you out of pocket. Sometimes the conmen use publicly available information to impersonate genuine Barclays companies and staff.

How it could happen to you

• You receive an unexpected phone call from someone claiming to be a member of a sales team, to talk about an investment opportunity that’s just right for you
• Very tempting returns are offered – often double-digit in size – and much is made of poor interest rates and low returns available elsewhere
• They may have found your details from shareholder registers and, in a bid to lower your guard, praise you as somebody who understands risk and who has been selected for this ‘exclusive’ chance.
• Pressure is put on you, with suggestions the opportunity is only available for a limited time
• Any concerns you have about downsides are brushed off, or the caller perhaps suggests you can sell your stake if the investment is unsuccessful
• If you say you’re not interested, they’ll keep on calling back and become adept at talking to you for long periods of time to wear you down

Stop, think and act

Any so-called ‘investment opportunity’ you receive out of the blue is likely to be very risky or a fraud. Many conmen do background checks on targets - for example, they may look for those who have recently retired, sold a business or come into a large inheritance – and tailor their pitches to match the profile.

If – separately - you are considering an investment, do plenty of research before you take the plunge. The Financial Conduct Authority’s (FCA) warning list details firms and individuals that it knows are operating without its authorisation – so you can check if any salespeople you’ve spoken to are genuine or not. The list also provides information about the risks associated with particular investment opportunities.

3) The 'money mule' Fraud

You’re persuaded to let an individual or firm temporarily place a large sum of cash in your bank account – for a ‘reward’ fee. However, as a ‘money mule’ or ‘money transfer agent’, you’ll be complicit in financial crime even if you didn’t know what you were doing.

How it could happen to you

• You may be tempted by job offers to make ‘easy money’ on job-search and social media websites, or via email or text.
• Whatever the job, it will – crucially – also involve you being offered a payment in exchange for receiving money temporarily into your bank account.
• You could then be asked to withdraw this cash to hand over to somebody in person, or transfer it on – usually overseas.
• However, allowing your bank account to be used in this way makes you a money mule and could land you with a criminal record – and the consequences of being caught are serious. Your bank account can be closed and you’ll have problems opening a new account elsewhere, as well as difficulties obtaining credit in the future such as a student loan, phone contract or mortgage.

Stop, think and act

Don’t allow your bank account to be used to move money for others. Remember, handling money that’s been obtained fraudulently is a crime – even if you don’t know where the money came from. Be especially wary of unsolicited offers of easy money. Research any company offering such job opportunities and make sure their contact details are genuine. Try to stick to reputable job ad websites used and recommended by your peers, and be especially cautious of job offers from overseas as it will be harder for you to find out if they are legitimate.