This week is Scam Safe Week. It is estimated that in 2023 £2.3bn was lost in the UK to fraud. There is no denying the success of fraudsters, and their techniques and technologies are evolving further with the help of technology and artificial intelligence. As a result, law enforcement is struggling to catch up and with resources stretched, fraudsters are taking advantage.
Here Phillippa Ellis and Celyn Evans report on the increase in fraud, how fraudsters tactics are changing and whether there is anything that can be done to prevent you becoming a victim.
Evolution of fraud
It is a sad truth that we have all been a target of fraud, and we are all too aware that scam attempts are on the increase. Where previously scams would consist of an infrequent email from someone claiming to be foreign royalty; now we see people contacting us on WhatsApp pretending to be family members in need of urgent assistance; or delivery companies saying that a parcel is held up at Customs so your bank details are needed to pay an import tax (especially prevalent at Christmas). However, with AI on the rise, it is no surprise that this too is being utilised by fraudsters so the grammar and spelling mistakes which were before, easy to spot, are now being corrected – making differentiating between what is legitimate and what is not, even harder.
BBC Radio Wales
As part of Scam Safe Week, Phillippa Ellis was interviewed on BBC Radio Wales on Tuesday by Claire Summers. Listen to her replay below:
Awareness
But it is not just the low value widely distributed scams such as those referred to above that are targeting UK victims, high net worth investors and businesses are also targets of fraud, and this is often where the most sophisticated and devious types of fraud arise.
Some common schemes to be aware of include:
- Attempts to persuade you to invest in property/development projects, offering very good returns on our investment, but it transpires that what you bought either was not what it claimed to be, or never existed in the first place.
- Spear fishing attacks where the recipient receives an email purporting to be from an expected sender (a supplier, HMRC etc) asking you to make payment to settle an account. These may be general, but often they are targeted following a data leak or email hack, and the fraudsters find out that a payment is due to be made.
- Calls purporting to be from your bank, particularly suggesting that they are from the fraud detection team, asking you to provide your banking details, or asking to take control of your computer during which time they will empty your bank account.
The above are non-exhaustive lists, but it is clear that the methods and types of scams being used by fraudsters is evolving as technology does and getting far more sophisticated.
Prevention
There are ways that each individual or business can try to prevent themselves from becoming a victim, unfortunately, the trick is being aware – as whilst AI and technology develops, there is one thing it can’t compete with – our senses and suspicions.
Think:
- Do you / the company owe any suppliers any invoices? Does the invoice make sense or look like the others you have received? Have you called the supplier to check whether the invoice has been issued?
- Does the opportunity being offered look too good to be true? Sadly it often is.
- Are you being placed under time pressure to make a transaction, have you been told that this is a once in a lifetime opportunity that will never come around again, or that there will be dire consequences if you do not make that transaction in that moment.
- Are you being asked to make payment in a different way to usual, eg to a different account, or through a bank transfer instead of a debit card transaction.
Whilst it may be time consuming to have to run through these checks, the time and cost in doing so can save you a lot of money and time in the long run.
Legal advice can be an expensive and lengthy process. Realistically, if you become victim to a low-level scam, legal action is often not the best resolution. Contacting the police, Action Fraud, or your bank or credit card provider can result in a quicker and less expensive solution.
If you have fallen victim to a large-scale fraud, whether you have lost your savings, your pension or are a part of a group of investors who have been a victim of fraud, this can be a different story. Especially if you are a part of a large group of investors the cost to the individual of legal fees and risk can be decreased, whilst the pressure placed on defendants can increase.
How can we help?
Our specialist Business Crime & Investigation team can provide you with advice and support if you have become a victim of fraud or a scam. Get in touch with our team of expert lawyers for bespoke advice.
