With lockdown forcing people to stay at home, scammers are taking advantage of this.

The stories of people being tricked out large sums of money through what seem like obvious ruses are well-known. We believe that, were we in the same situation, we would see through the cloud of deceit and know immediately what was going on. If this is people’s attitude, then they will prove easy prey for scammers.

If it were simply a case of people ringing or emailing asking for money, then everyone would know what was happening. However, scam artists are conniving and conceive of ways to tap into our worst fears. This is their unique skill. They create panic which erodes our ability to think rationally.

In the past year alone, there have been 259,675 reports of phone scams, up 31% from the previous year. Then, in January 2021 the number of phone scam reports tripled from December 2020, with 33,053 reports. Yet, if people can be made aware of certain techniques and giveaways, perhaps we can lessen the number of people affected by scams.

Testing the limits

In their essence, scams are beautifully simple: cold-calling someone and then persuading them to transfer money to an account which will then be immediately emptied. The actual mechanics, however, are more ingenious.

During the pandemic, scammers have begun to exploit the Track and Trace system. This takes the form of people being contacted by an unknown number, informing them that they have been in contact with someone who has contracted Covid-19. As a result of this, they must transfer £500 to an account to pay for a test and results.

Given the amount of coverage around Covid-19 testing and the tracing system, it might be expected that people are aware that requesting for a test kit to be delivered and collected is free. Yet, this is the unsavoury aspect of the scam as it plays into people’s fear that they may have contracted Covid-19. This is especially true of older people who are more at risk from the virus. To that end, they transfer the money for peace of mind only to find that no kit is delivered and the caller has vanished without a trace.

On Her Majesty’s Service

Outside of the coronavirus prism, people are being ensnared by calls supposedly from Her Majesty’s Revenue & Customs (HMRC). The scam begins with the victim being informed that they are liable to prosecution due to failure to pay taxes, committing tax fraud or similar. This can also take the form of National Insurance number fraud.

Part of what draws in the victims is the automated switchboard at the beginning of the call. Strange as it might seem, this feature gives the call an air of authority, rather than a cold call from someone posing as an HMRC employee. The switchboard will tell you ‘press 1’ should you wish to talk to the officer in charge of the investigation. This instruction is coupled with the lingering threat of, if you do not proceed, then the police will be at your place of residence to arrest you within 45 minutes.

This last detail, however, is their first mistake and the first clue people can pick up on. The police will not call you to tell you they are coming to arrest you. If they want to do so, they will simply show up rather than giving you prior warning. That said, in the panic of being told you might be arrested, it is easy for this fact to be forgotten.

So, having pricked your fears, they proceed to ask you for bank details, advising you transfer money to an account to be protected for 24 hours so that they can locate the person posing as you. This is the other key tell. No official will ever ask for bank details or for money to be transferred over the phone. After this period is complete, your money will supposedly be returned to you. However, as soon as they receive confirmation of the money transfer, the account will be emptied and the caller will disappear.

These scams are far from discerning. Indeed, the chief executive of HMRC, Jim Harra, received a call from a fraudster, pretending to be a taxman. Harra was informed that his National Insurance number had been compromised, meaning that he was asked to make a payment on a fake debt. The fact that scammers unwittingly tried to scam the chief executive of HMRC serves as evidence for the callousness of their scheme. They do not care who they target as long as they get what they want.

Key takeaways

The list of the various types of scams in lengthy. They extend to TV licence scams, brokerage calls and fake BT calls. Unfortunately, it is impossible to be fully aware of every scam in circulation. That said, there are certain crucial pieces of information that allow people to defend themselves against losing money.

Firstly, people should never give out personal information over the phone to strangers as this information can be used to steal identities and access accounts. This particularly true of bank accounts and credit card details. Secondly, it must be stressed again that neither a bank nor the police will ask for money to be transferred over the phone. Any attempt to force you to transfer money over the phone should immediately arouse your suspicions.

It should also be remembered that there is nothing wrong with being suspicious, either because an offer seems too good to be true or because the accusation of a crime has come out of nowhere. In fine, keep personal details private and be wary of anyone who wants money to be transferred over the phone.

People can also usefully acquaint themselves with audio recordings of scams to have a better idea of what they might expect. If in any doubt, do not pick up a call from an unknown number. Ignore it. If the call is genuine, they will leave a message.

Finally, and most importantly, do not be embarrassed if you have fallen victim to a scam. The people behind these schemes are clever, determined and ruthless. However, if just some of these features of a scam can be remembered, then you might just be able to protect yourself from scams.

* For more information, visit the Metropolitan Police website on personal fraud and Action Fraud.

About the Author: James Hingley

James Hingley is a contributing Features Writer with extensive expertise in International Relations, Politics and Culture.