Warning as energy bill payers targeted by fraudsters claiming they can reduce costs
Householders are being warned of fraudsters who are targeting energy bill payers with 'too good to be true' offers.
The scammers are promising to reduce winter heating bills and then setting up digital wallets using victims’ card details.
The UK’s leading fraud prevention services Cyber Defence Alliance, UK Finance and Cifas have joined forces to warn consumers about the sophisticated mobile scam which tricks customers into divulging banking one-time passwords and allows criminals to link card information.
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The fraudsters are posing as well-known brands and trusted retailers, and luring consumers with attractive offers on social media or rogue SMS messages containing malicious links which consumers are encouraged to click on.
These are often disguised as offers to ‘help’, such as to reduce winter heating bills by applying for a living allowance, as well as notifications about an undelivered parcel.
Once accessed, consumers are asked to enter their credit or debit card details. Following this they are sent a unique temporary one-time password, known as OTPs, via SMS. While these come from the consumer’s bank, the OTP has been requested by the criminals so that they can create a new digital wallet – such as Apple, Google or Samsung Pay – on a mobile phone and subsequently take control of the consumer’s account.
As a result, they can make both online and in-store purchases using the victim’s card details – with ease and at pace.
Dianne Doodnath, Principal of Economic Crime at UK Finance, said: ‘Criminals are sophisticated and will make every attempt to steal personal and financial information. We encourage customers to be alert to potential threats of fraud, be cautious of sharing personal and financial information and avoid sharing OTPs with requests out of the blue. If consumers think they’ve been scammed, it’s important to contact their bank immediately and report it to Action Fraud.’
Mike Haley, CEO of Cifas, added: ‘Scammers are using new technology to change their tactics at speed and find new ways to abuse consumers’ trust and steal from their bank accounts. We urge people to stop and think twice about any communications received unexpectedly and never act on urgency.’
