Trading Standards reports "huge surge" in scams linked to cost-of-living crisis

Dan Powell, Managing Editor
Tue, 18 Oct 2022

• Chartered Trading Standards Institute reports a huge spike in energy scams linked to the cost-of-living crisis
• Half of all adults in the UK are getting a scam email, text or phone call each month, suggests survey from Office for National Statistics
  
• Over 40 million people were targeted by scammers in 2021, according to Citizens Advice

The cost-of-living crisis has created a new spate of scam emails, text messages and phone calls as criminals look to exploit vulnerable consumers and Government funded support schemes. 

The Chartered Trading Standards Institute (CTSI) has reported "a huge surge in energy efficiency scams'',  offering rebates and offers to apply for grants. The Office for National Statistics (ONS) has also recorded a significant increase in criminal activity, with a survey showing that half of adults had received a "phishing" communication in the past month. 

Phishing is when criminals attempt to trick people to reveal important personal or banking information via a scam email, text message or phone call. More than 40 million people were targeted by scammers in 2021, according to Citizens Advice.

On 17 October, Chancellor of the Exchequer Jeremy Hunt rolled back on the Government's two-year energy price guarantee, saying the scheme would end in April 2023. This has fuelled fears that confusion around the scheme will result in more energy scams, as crooks look to target electric car drivers and cash-strapped motorists.

"There has been a huge surge in energy efficiency scams offering rebates and offers to apply for grants," said CTSI Lead Officer for Scams and Doorstep Crime, Katherine Hart.

“We see some of the texts or emails asking people to click on a link that takes them to an official booking platform where they are asked to submit personal information. This is a ruse to data harvest, often to scam the person at a later date."

According to a report by the Office for National Statistics, the telephone-operated Crime Survey of England and Wales (TCSEW) found a nine-fold rise in "advance fee fraud" (where victims are asked to make an upfront payment for goods or services which don't exist) and a 57 per cent increase in consumer and retail fraud from pre-pandemic levels.

The TCSEW polls 30,000 people every month and the latest data shows that more than half of the phishing messages were from senders posing as delivery companies. One third of messages claimed to be from a bank or building society, while 25 per cent of messages posed as a Government department.

The DVLA has told HonestJohn.co.uk that it does not send text messages to drivers about road tax VED refunds and recipients should delete any such messages.

The Office for National Statistics report suggests that three per cent of people who receive suspected scam messages will reply or click on a link, which is equivalent to more than 700,000 people across England and Wales. Of those who replied or clicked on a link, 11 per cent provided information that could be used by fraudsters.

In the report, Detective Chief Superintendent Oliver Shaw, City of London Police said: "Phishing scams continue to pose a significant threat for both individuals and businesses. I would urge everyone to be vigilant of unexpected messages or calls that ask for your personal or financial information.

"Remember, your bank, or any official source, will never ask you to supply personal information via email or text message."

Ask HJ

Am I being targeted by an overpayment scam?

I have provisionally sold my MG Magnette online. After several days, I received a check paid in Euros for more than the asking price of the car. When I questioned the buyer, he said the overpayment was for transport. I have no address for the buyer (only email). Should I be concerned?

The overpayment will make sense if you are incurring extra costs to transport the car (and agreed on these expenses with the buyer). But the lack of details about the buyer is a big red flag - you should have their name, address and telephone number. Overpayments can be innocent or part of a scam. Usually, when it comes to fraud, the buyer will overpay for a car and then ask for you to repay the extra money. This will be requested via a 'wired' transfer by a third-party company. In the event of a scam, the buyer will cancel the cheque after you've made the transfer and keep the 'overpayment' money and vanish (there is little recourse with wire payments). If the overpayment is valid (and covers agreed additional expenses) then pay the cheque into your account and keep the car until the funds have been cleared. If the overpayment is not valid, get the buyer's details and return the cheque. You can then ask the buyer to send you another cheque for the correct amount. If they refuse or try to pressure you into accepting more money than agreed, cancel the deal.

Answered by Dan Powell

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Ask HJ

Should I buy a car that hasn't been serviced in line with the manufacturer's maintenance schedule?

You recommended a SEAT Arona to me a few days ago, and I have test driven one that looks just what I need. However, it has done 15,000 miles from new (new at November 2019), but its first service was last month, when the main dealer serviced and MOT’d it. So no service history. How worried should I be about this lack of any attention for three years? It drives fine, but I’m no mechanic.

This is a big red flag, avoid and take your business elsewhere There really is no excuse not to service a new car in accordance with its manufacturer's maintenance record. Not only will the mechanical condition be compromised but it raises more questions than answers about the history of the car. The SEAT Arona is a common car on the used market, there really isn't any reason to accept one with a shoddy service history.

Answered by Dan Powell

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