KIS Bridging Loans
 
Presented by KIS Finance
 
The Different types of Fraud
A

Advance Fee

When you are asked by a dishonest company to pay a sum of money upfront to secure a financial product such as a loan - then the company pockets the advance fee and disappears without forwarding the loan. It is also used by unscrupulous companies selling cars and consumer items.

Anti-Virus Adverts

These adverts will often pop up on social media sites. Fraudsters create these to promote fake anti-virus software that people can download onto their computer or device, at a price much cheaper than all other legitimate brands. If someone clicks on the advert and downloads the ‘software’ they are likely to infect their device with malicious malware instead.

Application Fraud

If you have been a victim of identity theft, you could also fall victim to application fraud. This is when your stolen personal and banking details are used to open a new bank account in your name. This is a quick way for the fraudster to access their victim’s funds or they can use it to set up direct debits (like phone contracts) which are billed in their victim’s name.

B

Betting and Gambling Fraud

This is when a fraudster claims that they have inside information on horse racing and other sporting events and they will give them to you in exchange for a subscription fee. They will create fake testimonials of others who have won, using their tips, to persuade into taking them up on their offer. 

Benefit Fraud

This is when someone claims more money from the government than they are entitled to, or even when they are not entitled to any at all. They either lie about their circumstances or use someone else’s identity and put in a claim for benefits such as; heating and housing, job seeker’s allowance, care and disability or to avoid paying for medical bills such as dental care and prescriptions. They may also avoid telling officials when their circumstances have changed, meaning they are no longer entitled to the same amount.

C

Cancelled Subscription

Fraudsters are very good at creating emails to look like they have come from legitimate companies. They will use companies that provide a subscription service to their customers, like Netflix for example, and send emails claiming that the victim’s subscription is going to be cancelled. The fraudster will request banking and personal information for the service to continue.

Card Traps

This is when a device is placed inside the card slot of an ATM machine which then retains your card inside the machine. The fraudster can then come back later and retrieve the card- the most popular times for this type of fraud is weekends and bank holidays when the banks are closed.

Cash for Crash

Illicit motorists stage collisions and accidents so they can claim thousands in damage through their car insurance.

Charity Donation Scams

This works by a fraudster posing as a collector for a charity that they have either made up, or, taken the name of a well-known charity. They may ask you to donate online where you will be directed to a fake website where they will steal your bank details. Or, they ask you to phone a number with premium rates.

Cheque Fraud

There are a few different types of cheque fraud

Counterfeit: Counterfeit cheques relate to a genuine bank account but are fake ones created by a fraudster to look genuine.

Forgery: This is a genuine cheque; however, the fraudster forges the account holder’s signature.

Fraudulently Altered: This is when a genuine cheque has been written out by the rightful account holder, but the cheque is altered in some way by a fraudster before it is cashed in. They will normally alter either the amount of money or the recipient’s name.

Counterfeit Goods Websites

Fraudsters are becoming very good at creating websites to look almost identical to legitimate shopping websites. On these websites they will have images of genuine products with a price attached that will be much cheaper than on the genuine website. They will promote the website through social media adverts and phishing emails and texts.

Courier Scam

Fraudsters call you in an "emergency" claiming to be from your bank and trick you into handing your cards, PIN numbers and possibly identification documents such as passports to a courier which they send to your doorstep.

Cramming

This type of fraud is when small charges or fees are added to a consumer’s bill or invoice by a third party without their consent. They are often disguised as tax or service/administration charges to make them seem legitimate and are kept at small amounts to hopefully make them go unnoticed.

D

Data Brokering / Fraudulent Online Applications

A data broker is a company or organisation that collects its customer’s personal information and then sells it to other organisations. This is generally the result of spam emails, cold calls and malicious phishing emails.

Delivery Scams

Delivery scams often occur through phishing emails. The email will state that ‘your parcel’ has not been able to be delivered and you must follow a link to find out more information. This link will prompt you to fill in personal information which the fraudsters will steal. These scams tend to work more around busy times like Christmas where people are ordering multiple parcels and could lose track of what has and hasn’t been delivered.

Distributed Denial of Service (DDoS)

Fraudsters use this against company or corporate websites. They use a piece of software that makes thousands of attempts to access a website at the same time, using a technique called ‘IP spoofing’ to make it look like it is thousands of different computers. Eventually the website will fail due to the overwhelming amount of traffic. Fraudsters may use this as a diversion to commit other types of fraud of to test the vulnerability of the website so they can commit fraud later.

Door to Door Sales

Some legitimate companies use the tactic of door to door selling, however, so do fraudsters. They will try to sell you products that are worthless or broken or maybe advertise themselves as builders or plumbers who can do some work on the house.

E

E-Cards

E-cards are digital celebration cards that can be sent to your friends and family via email. Fraudsters are sending out fake ones that, when clicked on, download malicious malware onto your computer or device. This malware is often used to track your movements so they can steal log-in details to websites or online banking apps.

Electricity Scam

This type of scam works by fraudsters going to their victim’s houses and offering them cheaper energy prices compared to their current company. They use cloned keys to top up people’s energy credit. However, their current energy companies notice that they haven’t paid for the energy they have used, so they end up having to pay again.

Employment Fraud

This is when fraudsters advertise jobs that don’t exist to try and gain fees from a job applicant. They will give you questionnaires and interviews to make the job seem legitimate before offering it to you. They often claim that the job is abroad so they need fees to be paid to them in order to arrange travel, accommodation and working visas. They may also ask for bank details to set up salary payments for you but they use them to steal more money from your account.  

F

419 Scam

This is when a foreign fraudster asks for a small sum of money to be advanced, with the promise of a larger amount if it is fulfilled. The fraudster takes the money and disappears. The number "419" refers to the section of the Nigerian Criminal Code dealing with fraud.

Fraud Recovery Fraud

This is when somebody who has fallen victim to fraud in the past is contacted again by the same fraudster. They will keep your contact details and claim to be either a government official or police and tell you that they are aware of your previous loss and can get it back for you- however, the catch is, they charge a fee.

Fronting

Fronting is a term used for a type of car insurance fraud- It is when someone lies on their car insurance policy and says they are the main driver when they are not. It is often the case when a young driver (who is high risk) is added as a ‘named’ driver instead, to make the premium less.

G

Ghost-Broking

Illegitimate firms which offer insurance - in particular vehicle insurance - which does not exist. Not only will this scam money, it also leaves motorists without legal or adequate cover.

Government Agency Scams

Fraudsters are sending out very convincing letters and emails claiming to be from government officials. The letter or email might advise you to register in order to comply with a new legislation – for a fee. Other alternatives include asking you to pay a fine for breaches to the law, or requesting bank details to claim a tax rebate.

H

Health Scams

Online health and medical scams take place when you are emailed a link or see an advert for miracle medical treatments that supposedly offer unbelievable results. These can be fake online pharmacies offering cheaper medication without a prescription required, or, miracle cure treatments to things like acne, baldness, arthritis or weight loss tablets and teeth whitening treatments. There is no way of knowing what these drugs contain so, in worst case scenarios, they can damage your health.

HMRC Tax Scams

Every month thousands of phishing emails, texts and phone calls are issued from fraudsters claiming to be from HMRC offering people tax refunds. There are three most popular times of the year for this scam; the end of the financial year, the self-assessment deadline, and the issuing of tax refunds in April/May.

These fraudulent emails and texts contain links to fictitious websites, made to look like the genuine HMRC website, and ask you to enter your personal and banking information in order to claim your tax rebate. They will claim that you are owed 100s of pounds in order to make the offer as tempting as possible. Once your information has been entered, it will be captured by the fraudsters to steal your identity and money.

HMRC will only ever issue you a tax rebate through the post or through your pay via your employer. All emails, texts, phone calls and voicemails are phishing attempts.

Holiday Scams

Online holidays scams covers a huge range of different ways that fraudsters can attempt to steal your information and money. The most common are fake adverts that promote cheap deals for luxury holiday locations or cheap car rentals and taxi bookings for whilst you’re away.

I

Identity Theft

Your personal and financial details are stolen and used to access your bank account and obtain credit in your name. Criminal activity using fraudulently obtained information can give rise to difficulties securing loans, mortgages and credit cards, resulting in serious, long-term effects on personal finances.

Initial Coin Offering (ICO)

An initial coin offering is when a newly-invented cryptocurrency is launched for the first time to investors. There are two ways in which ICO fraud can occur. The first is when a fraudster impersonates the company offering the coin and trick people into buying the coin through them instead. The second is when a fraudster creates an entirely fake coin and ICO. They advertise it through fake social media adverts and phishing emails to try and obtain investors.

Instant Messenger Scams

Social media has always been a popular platform for fraudsters. They are hijacking peoples profiles and using them to send messages to the victim’s friends. These could be pleas for money or links to websites. The message looks like it has come from a legitimate contact.

Investment Fraud

Also known as ‘boiler’ room fraud. This is when a fraudster will cold call you and offer you the chance to invest in a variety of products or schemes that are completely worthless or don’t exist at all. They are normally shares, bonds or products like wine, art, silver, gold or diamonds. Once they have convinced you into investing as much money as they can, they disappear just before you are expecting your money returned.

L

Life Insurance

When your policy is taken over by another provider without your knowledge, allowing fraudsters to direct any payment to their own bank account. Other frauds include procuring false death certificates, often abroad, and deliberately fixing information regarding lost items.

Loan Repayment Scams

Fraudsters use a company name very similar to an existing loan company, then send out letters saying a payment has been missed, and a penalty charge is being enforced. The victim pays up, but the payment does not go towards their loan at all.

Lottery Fraud

When you're told by letter that you've won a huge sum of money on a foreign lottery. If you respond to the fraudster, you’ll be asked to supply personal information and copies of official documents, such as your passport, as proof of identity. The fraudsters can then use this information to steal your identity. They may also ask for spurious charges to be paid in order to release the "funds" which don't exist.

M

Mail Fraud

Fraudsters can have your post redirected or use personal mail found at a previous address to carry out scams.

Malware Fraud

Can be referred to as a virus, worm, Trojan horse, spyware, adware, scareware or crimeware, it is downloaded onto your laptop or tablet - usually be opening an email or programme and allows fraudsters access to your online activity, including financial affairs.

Mandate Fraud

This type of fraud is when a fraudster impersonates a company or organisation you make regular payments to. They contact you, normally via letter or email, and ask you to update their banking information to a new account. In reality, the money is going straight into the fraudster’s account and the subscription you had with the legitimate company has been cancelled.

Missed Delivery Cards

Fraudsters are creating missed delivery cards that look almost identical to ones that are left by Royal Mail when they are unable to deliver a parcel. These cards will contain information of how to get your parcel. On the fraudulent cards, you will be asked to call a phone number where you will then be asked for a range of personal information.

Mortgage Fraud

This can include; over-valuing properties, over-stating income, hijack conveyancing, taking out mortgages in the name of other people or the deceased, taking a number of mortgages with different lenders  on one address by manipulating Land Registry data, changing title deeds without an owner’s knowledge to allow the sale of a property. It usually involves individual(s) or organised criminal gangs and at least one corrupt associate, such as an accountant, solicitor or surveyor.

O

Online Banking Fraud

Your account is accessed by criminals, through malware fraud, phishing or other duplicitous activity.  All banks and financial organisations are at risk of online banking fraud too, on a grand scale.

Online Shopping Scams

These types of scams tend to happen on online auction websites where fraudsters will try to sell you products that are poor quality, broken or non-existent. In some cases, when payment is due, the fraudster will re-direct you to a website that they have created (which looks almost identical to the auction website) and ask for your bank details and personal information. They then steal this information and use it to have access to your bank account or steal your identity.

P

Pensions Scam

Fraudsters claim you can access your pension pot before the age of 55, and may approach you over the phone, via text, or even knock at your door offering a cash incentive, a free "pension" review, or try to lure you with investment opportunities. Read More

Phishing

When your personal information is used by fraudsters to access your bank accounts or obtain credit in your name. This is usually done by email, with criminals making invoices and details look genuine through copying logos etc. Beware of emails pretending to be from HMRC offering a tax rebate - HMRC will never send emails for this purpose. Be wary too of emails from companies offering discounts in return for completing a survey online and then afterwards requiring you to give your bank details to receive this 'discount'.

Ponzi Schemes

Fraudsters are using this scam to steal their victims’ identity and money. Once the fraudster has gained personal information about their victim, they will go to the phone provider and request a new SIM card, using the information to bypass security questions. Once they have the SIM card, all messages and phone calls can be redirected to them. This will allow them access to all sorts of private information about their victim.

PPI Claims

Fraudsters from a claim management company promise to claim back money for you in return for payment of an upfront fee - typically of a couple of hundred pounds. After the fee has been paid it is unlikely that you will hear from them again.

PIN

Fraudsters can modify genuine PIN entry devices to record card details from a victim, details which may then be sent abroad to be used in countries which don't have chip and pin. Also, PIN numbers can be stolen if you don’t take care in shops and services, or write them down.

R

Remote Access Fraud

This type of scam involves a cold call from a fraudster claiming to be from a large computer or telecommunications company, or, from a technical support service. They claim that your computer has been sending error messages or it has a virus, so they ask for remote access to your computer so they can fix the ‘problem’. Once they have access to your computer they either ask for payment for their services or download viruses and malware to your computer.

Rental Fraud

Rental fraud is another type of ‘advance fee’ fraud. This works by soon-to-be rental tenants being tricked into paying an upfront fee for a property. They later find out that the property either doesn’t exist or it has already been rented out to somebody else. These fraudsters often target university students looking for accommodation.

Romance / Dating Site Scams

Fraudsters prey on people looking for a relationship, persuade them into transferring money into their accounts for travel costs or urgent medical attention, then disappear. It's a con-trick often employed from overseas.

Rubber Ducky

Nothing to do with bath toys - this term describes a type of USB stick used to collect information from a computer without the owner's knowledge. Read More

S

SIM Swapping

Fraudsters are using this scam to steal their victims’ identity and money. Once the fraudster has gained personal information about their victim, they will go to the phone provider and request a new SIM card, using the information to bypass security questions. Once they have the SIM card, all messages and phone calls can be redirected to them. This will allow them access to all sorts of private information about their victim.

Skimming

This is when a ‘skimmer’ device is attached to the card slot of an ATM machine which then reads the information encoded within the card’s magnetic strip. This can be used at the same time as a hidden camera which records you entering your PIN number.

Smishing

Victims receive urgent text messages apparently from their bank or (recently) Apple ID, advising that they have been locked out of their account or new payments have been taken. If the enclosed link is clicked, the site asks for personal and financial details.

Slamming

Your telephone line or internet service provider is changed without your consent, allowing fraudsters to access directly your communications.

Social Engineering

This targets individuals by convincing them that something precious to them is at risk - personal information, the security of their bank accounts or the well-being and protection of family members. It works by manipulation and preys on people's willingness to be helpful and do the right thing. Email, followed by landline phone calls, is the most common method used to contact potential victims.

The most common current social engineering scams relate to bogus BT and iTunes/Apple ID issues, followed by HMRC tax rebates, a lottery, PayPal, a bank and Amazon. You should also look for out false invoices, payment receipts and travel itineraries, suspended/blocked credit cards and Sky services upgrade.

Spear Phishing

A spear phishing scam is normally done via email or another form of electronic communications which is targeted at a specific person, business or organisation. These are often for the intended purposes of stealing confidential information, or, to download malware onto their target’s computer(s).

T

Tabnapping

This is when a fraudster targets people who have various tabs open in their internet browser for a long period of time. If they have access to the computer, they can change the label and the contents of a tab that is open but not active. They will create a fake version of the user’s website so when they click back on, they will assume that they have just been logged out, so re-enter their details. They may add messages like ‘your session has timed out’ to appear to have a legitimate reason. These are often done with online banking, social media and online shopping sites. The log-in details entered go straight to the fraudster.

Tax Rebate Scams

These scams happen when a fraudster cold calls their victim to say that they have been placed in the wrong tax bracket and are due for a rebate (refund). They claim that a fee must be paid in order for the rebate to be successful.

Ticket Fraud

This is when fraudsters create fake websites that claim to have tickets available for popular events such as concerts, sporting events or comedians. The tickets will either never arrive, or, they do and when you get to the event you are told they are fake. When you try to contact the company, they either don’t respond or you are told that they don’t offer refunds.

TV Subscription Scams

These scams are usually performed via cold calling. The fraudster claims to be from their victim’s television service provider and will say that they either have deals on offer, your subscription needs to be renewed, or your current subscription has been cancelled. The fraudster will ask for your personal or banking details so they can process the transaction.

U

USB Stick (portable data storage device)

See Rubber Ducky

V

Vehicle Matching Scam

This is a type of advance fee scam. A fraudster will call someone who has recently advertised a vehicle for sale. They claim that they have a buyer for the vehicle and ask for a fee to be paid for selling it- a fee which is refundable is the vehicle isn’t sold. Inevitably, the vehicle isn’t sold and the refund isn’t paid.

Vishing

A fraudster contacts you by telephone, usually pretending to be from a genuine business or organisation to fool you into disclosing personal information that they will then use to commit identity theft.

W

Whaling

These scams are aimed at high-profile targets, such as senior executives, within a business. They work very similarly to ‘spear phishing’ scams but the emails and messages are created with a much more serious and high-profile message to gain sensitive information regarding the business.

Work from Home Scams

Fraudsters will create adverts for jobs which you can do at home, with the promise you’ll earn a fortune and have flexible working hours. Once you have applied for the job, the fraudster will ask you to pay an upfront fee for ‘processing’ costs and then disappear with the money.

 

If you know of any other type of fraud, please let us know in the comments below.

 

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