UK fraud prevention organisations raise alarm on smart phone scam

Driven by international organised crime groups posing as well-known brands and trusted retailers, scammers are luring consumers with attractive offers on social media or rogue SMS messages containing malicious links, which consumers are encouraged to click on. These are often disguised as offers to ‘help’, such as to reduce winter heating bills by applying for a living allowance, as well as notifications about an undelivered parcel.

Once accessed, consumers are asked to enter their credit or debit card details. Following this, they are sent a unique temporary one-time password, known as OTPs, via SMS. While these come from the consumer’s bank, the OTP has been requested by the criminals so that they can create a new digital wallet – such as Apple, Google or Samsung Pay – on a smart phone and subsequently take control of the consumer’s account. As a result, they can make both online and in-store purchases using the victim’s card details.

Remaining sceptical 

The Cyber Defence Alliance is a not-for-profit organisation that performs a co-ordinating role, supporting banking members to prevent cyber attacks, supporting law enforcement action (both collaboratively and proactively) against cyber criminal networks and helping to prepare its members to counter emerging fraud and cyber threats.

Garry Lilburn, operations director at the Cyber Defence Alliance, said: “Our investigations have shown that international organised crime groups are orchestrating these scams and selling on compromised card details so that other criminals can easily buy goods and services. It’s vital consumers remain sceptical of offers that are too good to be true and that ask for card details.”

UK Finance is the collective voice for the banking and finance industry. Representing more than 300 firms across the industry, it acts to enhance competitiveness, support customers and facilitate innovation.

Dianne Doodnath, principal of economic crime at UK Finance, commented: “Criminals are sophisticated and will make every attempt to steal personal and financial information. We encourage customers to be alert to potential threats of fraud, be cautious of sharing personal and financial information and avoid sharing OTPs with requests that come ‘out of the blue’. If consumers think they’ve been scammed, it’s important to contact their bank immediately and report it to Action Fraud.”

Changing tactics

Cifas is the UK’s not-for-profit fraud prevention service with over 775 members from across key economic sectors including banking, retail, insurance and telecoms. Cifas protects businesses and individuals from fraud through the sharing of data and intelligence sharing between the private, public and third sectors.

In addition to providing products and services which help businesses prevent more than £1.8 billion in fraud losses each year, Cifas delivers specialist training through its Fraud and Cyber Academy and the Digital Learning Programme.

Mike Haley, CEO of Cifas, observed: “Scammers are using new technology to change their tactics at speed and find new ways in which to abuse consumers’ trust and steal from their bank accounts. We urge people to stop and think twice about any communications received unexpectedly and never act on urgency.”

‘Take Five to Stop Fraud’

Led by UK Finance, ‘Take Five to Stop Fraud’ is a national campaign that offers straightforward and impartial advice to help individuals protect themselves from financial fraud. The five points to note are as follows:

*Take a moment to stop and think before parting with your money or information

*Ask yourself: ‘Could it be fake?’ It’s OK to reject, refuse or ignore any requests. Only criminals will try to rush or panic you

*Don’t click on links or open attachments in unsolicited SMS or e-mail communications even if they appear to be from a company you know

*Source a second opinion from someone you trust about what you’ve received

*Be cautious of any ‘too good to be true’-type offers

*Further information is available online at www.cifas.org.uk