Scamology

Time for an update on the various techniques which ensnare the unwary and a few that even seasoned professionals may be unsure of.

If you haven't read my previous musings on this subject, do take a look at 

Stealing your house and diverting your money

and 

What to do with stolen passwords?

They are very much in regular use, along with the time-served and time-proven 419 scams. 

Cyber-crime profits reached $3.5bn in 2019, says FBI

The ones I've listed below are ones I've seen myself or brought to my attention by collegues and friends.

1) SMS - Text message scams

They may purport to come from freight forwarding or courier companies, reminding you have a parcel waiting for you or one which is due a customs charge. They often come with a link to a document or to a compromised web site that can install malware on your mobile device (phone or tablet).

Some may ask you to call a number like 0300 200 7300, which is quite similar to the official HMRC contact number. In some cases it may be the actual HMRC number which shows on your phone.

2) Direct calls - HMRC Scam

A good friend of mine received a voice call from someone purporting to be representing HMRC (Her Majesty's Revenue and Customs) a similar institution to the IRS (Internal Revenue Service) for those of you in the USA, I'm sure wherever you are, there is an equivalent body.

A quick internet search of the caller's number showed an official HMRC number.

They even went through identity checks for data protection. 

They said an extensive investigation had concluded that he owed a significant amount of backdated income tax. They stated that my friend had not responded to multiple correspondence from HMRC.

References were made that gave the call credibility, including home address details. Other restitution instruments were mentioned including CCJ (County Court Judgement), potential of bankruptcy, restriction on directorships and damage to credit ratings.

An immediate payment would avoid having to attend a hearing and further penalties at the High Court.

I was advised that they were very convincing and knew enough to frighten those who are less aware.

It's quite clear that the people attempting this fraud had expended significant effort into researching their mark (potential victims) and proffering enough personal information to make their claim more credible and believable. This is made quite easy by combining public sources of information with leaked personal data that is easily obtained. Further research has shed light on variations on the theme, with

some stating that employers or child protection agencies will be informed.

They may ask for bank or card details, of course you must not give them this information.

The Fraudster's flow will look something like this:

1.    Scammer sets up fake or clone caller-ID and uses court or other government agency telephone numbers.

2.    Scammer uses public and leaked personal information to target a mark (victim).

3.    Victim is asked to authenticated their identity, in a bid to make the scam more believable and to gain more information.

4.    Narrative is used to scare the mark with consequences of not complying, such as being arrested, subject to punitive fines, involvement of child protection agencies or the law courts.

5.    Are likely to be directed to real and authentic web sites and / or to similar looking sites which are loaded with malware to enable further control of the mark.

6.    They will ask for bank or payment card details to avoid further action.

7.    They may pass or sell your details to other scammers.

Note some may draw out stage 5-6 to further increase the stress on the mark.

How to avoid these scams?

Unfortunately these scams can be quite sophisticated. The best current advice is to :

Verify the authenticity of the caller and the authenticity of the claim.

Contact the agency or body yourself directly, from another phone; it is possible for a caller to "hold" the line on a land line, so even if you dial out, you'd be speaking to the scammers.

Tax authorities usually communicate by mail, but this does not mean the scammer won't do so.

Remember genuine organisations :

1.    Will not ask for your card number or bank details.

2.    Will not ask for your PIN.

3.    Will not get get annoyed if you want to check their credentials, most are trained on this (or should be!!!)

4.    Do not give information, download documents or click on links.

Talk to an information security professional if possible; if not a friend or family for advice, although they may not be able to help you directly, it will delay things and give you the chance to think about things more clearly.

Call Actionfraud on 0300 123 2040.

What to do if you think you’ve been scammed

First of all keep calm. If you have used bank transfer, contact your bank and explain the situation to them, obviously you will need to be sure that the person you speak to is genuine.

Report the incident to https://www.actionfraud.police.uk/if you’re based in the UK. 

The UK Government has guidance on this subject.

There are many other scams I haven't highlighted

Other scams that I've come across are listed below, using your favourite search engine will net you plenty of material.

• Boiler rooms - may be stocks, bonds etc, https://www.fca.org.uk/scamsmart/share-bond-boiler-room-scams
• Binary Options - https://www.fca.org.uk/scamsmart/binary-options-scams https://www.fbi.gov/news/stories/binary-options-fraud
• Pension optimisation - https://www.moneyadviceservice.org.uk/en/articles/how-to-spot-a-pension-scam https://www.thepensionsregulator.gov.uk/en/pension-scams https://www.thetimes.co.uk/article/pension-scams-cost-4bn-k6rh6jmfc
• Fine wine investing - https://www.fca.org.uk/scamsmart/how-avoid-investment-scams
• Bitcoin and cryptocurrency investing - https://www.thebalance.com/beware-of-these-bitcoin-scams-4158112 https://www.which.co.uk/consumer-rights/advice/how-to-spot-an-investment-scam
• DVLA, road tax scam - https://www.swansea.gov.uk/article/38147/DVLA-vehicle-tax-refund-scam https://www.mirror.co.uk/money/drivers-warned-dangerously-convincing-dvla-18922670
• Fake parking penalties - https://www.britishparking.co.uk/News/Page-18/legitimate-parking-charge-notices-are-not-sent-by-email/162157 https://www.actionfraud.police.uk/alert/alert-beware-of-justice-gov-uk-scam-parking-fine-emails
• TV License scam - https://www.tvlicensing.co.uk/faqs/FAQ288
• 419 scam, Nigerian/Korean/American/Chinese benefactor has left you XXX million of USD and you are entrusted to help transfer this money out of ABC country.
• Fake invoice scam - https://www.financialfraudaction.org.uk/businesses/advice/invoice-fraud/ https://www.titanhq.com/blog/dont-risk-your-career-think-twice-before-you-pay-that-invoice/
• Authorised Push Payment fraud - https://www.fico.com/blogs/what-authorised-push-payment-fraud
• Winning competitions you haven't entered - https://www.scamwatch.gov.au/types-of-scams/unexpected-winnings/unexpected-prize-lottery-scams
• Gift cards, vouchers - https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=202107450
• Employment, interview scams - https://www.thebalancecareers.com/top-job-scam-warning-signs-2062181
• Property rental deposit theft - https://www.mydeposits.co.uk/blogcat/renters-warned-about-new-deposit-scam/
• Vehicle sales - https://www.autoshippers.co.uk/car_shipping_scam.htm, https://www.bbc.co.uk/news/uk-england-manchester-51220514
• Fake dating - https://www.scamwatch.gov.au/types-of-scams/dating-romance
• Espionage - https://www.bbc.co.uk/news/world-middle-east-51530311

Some of the above could be genuine investment opportunities, but none will cold-call you (UK).

What else can you do?

Way back in 1597, Francis Bacon said 

"Knowledge is power"

So be informed, tell your family, friends and neighbours. 

I've written quite a few articles on LinkedIn, so do take a look for similar material. 

Use of content

You are free to use the content I've published on LinkedIn for your own private use. This is also extended to end-user organisations as long as it's attributed to me in the credits.