Fraudsters offering fake Government grants

What Is The Non-Existent Government Grants Scam?

During the pandemic, some callers may offer non-existent government grants to people who receive a text message stating they are entitled to claim COVID-related grants of some amount, e.g. £277. The user is then redirected to a link on a professional-looking website where they are asked to fill in their personal and bank details to claim it. 

Such a form is often full of errors, and the fraudsters aim to gain access to the applicant's name, date of birth, bank details, contact information, and security code. One should know that government authorities will not ask for so many details to offer grant funding.

Such online messages are sent by unscrupulous fraudsters who try to gain an advantage through the worries and confusion over such grants during the Covid time. They tempt people to believe in available government support and try to convince them. Therefore, people should try to gain the latest information about the grants and stay alert to avoid scams.

How Is The Fraud Committed?

• The victims get cold calls from businesses or individuals who claim they are calling on behalf of authorised agencies to provide the claims. If the client is interested, they are asked to fill in the claim forms and seek personal and bank details.

• If they suspect the victim is interested in receiving the grants, they may re-contact and congratulate them, stating they have been selected to collect the money.

• The fraudsters then ask the applicants to identify and get a prepaid card to get the funds. Finally, the victims are contacted by phone or email and asked to enter details for the prepaid cards and copies of statements to get the funds.

How To Identify A Scam?

• One should be aware of the compelling fake websites claiming to be working on behalf of the government. These websites take advantage of people's trust while working for authorised agencies. A legitimate agency will never seek the grant receiver to pay money to get the claim amount in return.

• The fraudsters use various tactics like cold calling to get the prepaid card money. Since the grants are never transferred, the fraudsters aim to acquire the money on the card where they are asked to deposit their contribution to attain the government's contribution. All such tactics indicate a fake deal because if the authorities want to send money, they have all the required details and may not require any information from the client to transfer funds into the bank account. Therefore, one should never provide any information and not submit any request to fill in the banking or personal information.

• Some forms can fill in the mother's maiden name or other crucial details, which scammers can misuse to attempt fraud. Also, the government forms never ask to fill in the mother's maiden name for such purposes.

• Stop communicating with the caller agency and record all the information you have already given, which the enquiry agencies can use later. Then, if you suspect fraud, contact the police/regulatory body or report the crime to Action Fraud. 

How To Avoid Scams Through Wire Transfer?

There are many different types of lockdown scams that one should be careful of. The Covid lockdowns have been a difficult phase for many across the globe, who lost jobs and suffered financial uncertainties. 

In addition, the work-from-home culture increased the number of hours people spend on the internet, and many online buyers remained vulnerable to cruel con tactics due to greater approachability.

The top financial scams of the last few years happened in online shopping, where the victim paid through plastic cards, cheques or bank fund transfers. 

Thousands of users in the UK and the US lost money through wired transactions where they were contacted out of the blue by a company to pay for a family member or a needy person or buy a scheme that promised them to deliver profits or discounts. 

Nevertheless, they were left with no money in their accounts as the money went straight to the fraudsters' accounts. 

Tricksters used professional methods to extract funds from unsuspecting individuals. For example, several who made transactions on the risky wire service were tricked into paying into other people's accounts instead of the one they intended to do or pay for goods or services they never received. 

In such cases, the victim gets a message via email from a distressed family member or someone in need living in a distant area. The victim is asked to pay to help the other person, and as they enter the bank details, they shift money to a fake account. 

In the US, the FTC and DOP filed charges against Western Union, and the US government held £437m to reimburse victims who suffered losses in wire transfers between January 2004 and Jan 2017.  

The FCA issued guidelines to internet users to stay alert regarding such wire transfers, one of the easy targets of fraudsters. According to the FCA, men aged 50 are often targeted because they are more vulnerable, have good savings, and can withdraw funds from their accounts. 

How To Protect From Wire Transfer Fraud?

One should never enter the bank account details in forms to fill a claim. Clone sites often appear to be legitimate professional financial services sites but have multiple spelling and grammatical mistakes in their website content or messages. Therefore, one should never apply for a refund or claim on these websites. 

Do not be pressured into transferring money immediately in a hurry because it can be too late to get back the funds if you have initiated the transaction. Instead, always seek professional help or guidance from an expert before making any financial decisions. 

Scammers also contact a victim who lost money in such transactions and claim they can get the money back once they complete the claim form. 

Be wary of unsolicited calls and emails where people claim they work for a prestigious financial agency and can acquire your claims. Remember, even government agencies cannot claim on your behalf.