Cookham Discussion Board

During difficult times like these, it’s an unfortunate reality that new types of scam activity can appear.

The FCA has issued guidance on some new scams that have arisen during this period. It’s important to familiarise yourself with these scams to make sure you don’t fall victim to any of them. Some of these include:

‘Good cause’ scams, where scammers will ask you to invest in good causes such as face masks and hand sanitiser production, often promising lucrative returns.
Cold calls, emails, texts or WhatsApp messages telling you that your bank is in trouble due to coronavirus and you need to transfer your money to an alternative bank account.
Scammers asking for upfront fees when applying for loans or credit cards that you’ll never receive, in an attempt to exploit people experiencing short-term financial concerns.
For more information, check the FCA web page on avoiding coronavirus scams. https://www.fca.org.uk/news/news-stories/avoid-coronavirus-scams

What tactics to look out for

Exploiting short-term financial concerns, scammers may ask you to hand over an upfront fee – usually between £25 and £450 – when applying for a loan or credit that you never get. This is known as loan fee fraud or advance fee fraud.

‘Good cause’ scams. This is where investment is sought for good causes such as the production of sanitiser, manufacture of personal protection equipment (PPE) or new drugs to treat coronavirus – with scammers using the promise of high returns to entice consumers.

Using the uncertainty around stockmarkets, scammers may advise you to invest or transfer existing investments into non-standard investments.
Clone firms - firms must be authorised by the FCS to sell, promote, or advise on the sale of insurance products. Some scammers will claim to represent authorised firms to appear genuine. In particular, be aware of life insurance firms that may be cloned.

Scammers may contact you claiming to be from a Claims Management Company (CMC), insurance company or your credit card provider. They may say they can help you recuperate losses by submitting a claim, for the cost of a holiday or event such as a wedding cancelled due to coronavirus. They will ask you to send them some money or your bank details. 

Cold calls, emails, texts or WhatsApp messages stating that your bank is in trouble due to the coronavirus crisis, and pushing you to transfer your money to a new bank with alternative banking details.