3 October 2022
This Cyber Security Awareness Month, Quilter, the wealth manager and pension provider, is urging people to have a heightened awareness of the cyber security scams targeting the most vulnerable during the cost-of-living crisis.
Linda Morgan, information security culture manager at Quilter explores some of the most common cost-of-living crisis scams to look out for and what you can do to avoid becoming the victim of such attacks:
“As with all major crises, criminals seek to exploit them, and the current cost-of-living crisis is no exception.
“Recent data from the Office for National Statistics (ONS) shows there has been a general rise in fraud, with a 25% rise on pre-pandemic levels – to around 4.5 million offences – in the year to March 2022. Almost two thirds of these were flagged as cyber-related. Given the cost-of-living crisis has taken an even firmer hold in the months since this data was gathered, it is likely these numbers have risen further still as new targeted scams appear.
“With the current situation pulling tightly on our purse strings, it is likely that the anxiety this causes could make us more vulnerable to scams. Attackers often exploit ‘hope’ tactics by creating scams which feature fake refunds, deals or goods which turn out to be ploys to obtain personal details or gain access to our personal accounts.
“Financial pressure and stress can play a considerable role in the way we operate and how we respond to different situations. We have two sides to our brain: one is rational, and the other is more emotional. Cybercriminals want us to operate using the emotional side of our brains – the one that works at a much faster pace which leaves less time for assessment and makes us more vulnerable as a result.
“The right trigger can cause us to panic and make decisions without thinking properly. So, as people become increasingly worried about their finances, they are more frequently in that emotional state, which is ultimately a gift to scammers looking to take advantage. To help ensure you avoid becoming a victim of cyber scams, it is important to:
- Be on your guard – if you are not sure about something, take five seconds to pause and think before you act.
- Don’t be rushed into taking action - if emotions are heightened, that is a red flag and a sure sign to stop, breathe and assess.
- Anyone can be targeted by or fall victim to a scam - people of all ages and backgrounds can be vulnerable. Just because you can’t think why you might be a target, doesn’t mean that a criminal can’t. The biggest mistake would be assuming you have nothing of value to an attacker.
“Some key examples of current scams include:
Fake investments scams
“Investment scams aim to get unsuspecting people to hand over their money – they can appear perfectly legitimate with websites, testimonials, chatbots and marketing material.
“A growing number of investment scams involve cryptocurrencies such as Bitcoin. These scams often involve someone being persuaded to buy cryptocurrency through a legitimate intermediary but then sending money to what they believe is a genuine investment platform - in reality, a platform operated by fraudsters.
“The important rule of thumb here is that investments that appear too good to be true are often a scam waiting to happen.
“If you think you may have come across an investment scam, remember:
- Be wary – if it sounds too good to be true, it likely is.
- Do your research to determine the legitimacy of the investment.
- Check the FCA register and contact the firm on the number listed here before taking any action.
Energy Bills Support Scheme scam
“Be wary of texts and emails around the cost-of-living crisis. We have already seen SMS messages and emails being sent from spoofed ‘Gov.org’ or Ofgem addresses asking people to ‘apply’ for cost-of-living payments. The latest ONS data shows that in the two weeks to 5 August 2022, more than 1,500 reports were made to the Suspicious Emails Reporting Service (SERS), run by the National Cyber Security Centre, about scam emails pretending to be legitimate energy rebates from Ofgem.
“The legitimate rebate will be paid directly to energy suppliers by central government and can only be accessed as a reduction to your energy bills over a six-month period starting from October.
“If you do receive any texts or emails, remember:
- You do not need to apply for the payment.
- You do not need to call anyone to request it.
- The payment will be received automatically via your energy bills.
- The government or your energy supplier will never ask for personal details by SMS or email.”
For further information, visit the government’s cost of living support factsheet.
Refund scams
“A new type of scam, which has primarily been targeting social media users, offers a refund on recent debit card transactions for an upfront fee. However, the scammers are simply trying to harvest your personal and financial information, which they’ll then use to set up a device on your account to give them full access to your bank account. Scammers will then use the banking app to dispute a transaction and get a refund.
“Remember to stop and think carefully before giving anyone online your personal details, as this could open the door to your financial information.”
Petrol vouchers and gift cards
“Amid rising fuel prices, we have seen fake social media ads and emails offering fuel cards at reduced prices in exchange for answering a few quick questions regarding your experience with the supplier and completing a survey. However, this is a scam that aims to harvest your bank details.
“Other similar scams are out there, so it is important to be wary with any requests to purchase gift cards, especially those that can be used as cash.”
Reporting a scam
“The most effective way to stop scammers is to report a scam when you see one – even if you have fallen victim to it. After all, the attacker should be the one feeling shame, not the victim.
“How to report scams:
- Facebook: select the three dots on the top right-hand corner of the ad and select ‘Report ad,’ before pressing ‘Misleading or scam’.
- Websites: report a suspicious website to the NCSC.
- Emails: forward scam emails to report@phishing.gov.uk. You can also select the ‘Report Spam’ button on Gmail, the ‘Report phishing’ button on Hotmail and send scam emails to abuse@yahoo.com on a Yahoo account.
- Text messages: forward scam texts to 7726, a free reporting service provided by telecoms companies.
- Phone calls: you can also report scam calls to your mobile phone to 7726.”
