Coronavirus scams are on the rise: what to watch out for

The coronavirus pandemic has been viewed as an opportunity by fraudsters. Here's how to avoid being duped. 

The coronavirus pandemic has been viewed as an opportunity by fraudsters, with the latest scam to do the rounds focusing on TV licensing.

The scam was reported 260 times in May to Action Fraud, the main reporting body for scams in the UK. The emails, purporting to be from TV licensing, claim a recipient’s direct debit had failed and that payment is needed to avoid prosecution. In addition, those targeted are told they are eligible for a “Covid-19 personalised offer” of six months’ free license.

Action Fraud notes: "The messages contain links to genuine-looking websites that are designed to steal personal and financial information.

"Always question unsolicited requests for your personal or financial information in case it's a scam. Never automatically click on a link in an unexpected email or text."

During the pandemic, both pension savers and investors have also been warned to be extra vigilant about scammers. One unfortunate trend that has been gaining prominence is that of scam artists using unauthorised celebrity endorsements on social media to promote ‘get rich quick’ investment schemes.

At the end of April the Investment Association (IA), the trade body for the fund management industry, raised concerns that “some scammers are attempting to use the pandemic to convince savers and investors to withdraw money from their investments.”

It added: “Investment management firms have seen a noted increase in this criminal activity, previously focused on retail banking customers. Criminals are using increasingly aggressive tactics, for example, posing as the police to convince one saver to withdraw the money held in their saving bond.”

The IA is urging anyone who suspects fraudulent activity to follow the advice of Take Five to Stop Fraud, a national campaign led by UK Finance. 

• Stop: Taking a moment to stop and think before parting with your money or information could keep you safe.
• Challenge: Could it be fake? It is ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
• Protect: Contact your investment manager immediately if you think you’ve fallen for a scam and report it to Action Fraud.

Below, Money Observer rounds up five tips to help you keep your wits about you.

1. Be suspicious of all unsolicited calls

While pension cold-calling should now be less commonplace following the government’s ban on cold-calling relating to pensions last January, they have not stopped entirely, as calls that originate from abroad are outside the UK authority’s reach and will still continue. Be suspicious of all unsolicited calls by being on guard and then hanging up the phone. Never give out personal information such as your bank details. 

2. Ignore the sales patter

Con artists will often tell unsuspected victims that the investment opportunity is so good they have invested on behalf of their children or parents. Ignore these false claims, which are used to try and make you feel more at ease about parting with your cash.

3. Turn the tables

If you do not hang up, put the pressure on the caller and ask for their FCA authorisation number. You can check the FCA Register to see if the company or individual you are dealing with is authorised.

4. Do not invest in anything you do not understand, or be pressured by a deadline

Not knowing what you are investing in is sure-fire way to fall victim to a scam. Instead, stick what you know and are comfortable with. In addition, do not be pressured to make a quick decision – setting a deadline for an ‘investment opportunity’ is a common tactic used by fraudsters.

5. If it looks too good to be true, it probably is

Remember that "if it looks too good to be true, it probably is".

If you have been scammed or contacted by an unauthorised firm, contact the FCA’s consumer helpline or call 0800 111 6768.