UK underequipped to deal with scammers

A damning new report says that the authorities are failing to keep on top of scammers. It's up to us to stay vigilant!

The UK’s systems for dealing with and protecting consumers from scammers are a mess, exposing us all to dodgy rip-offs and scams that cost the nation millions of pounds each year.

That’s the conclusion of a report by the National Audit Office (NAO) into the UK’s Trading Standards offices, a report which makes for pretty grim reading.

A fragmented system

The NAO’s study found that Trading Standards departments currently log information about the different scams on two separate database systems. Brilliantly however, those two databases are completely incompatible, allowing crooks and their money-making ploys to slip through the net. A triumph of technological incompetence.

What’s more, local Trading Standards departments have shown an unwillingness to take on cases which go beyond their local areas.

In addition, the framework for prioritising and allocating cases, which was introduced by the Office of Fair Trading, was identified as not being implemented properly. Many of the regions of the UK have not got the support structures in place for investigations, while there is also a lack of clarity over who should be taking cases forward. This has resulted in the OFT only taking enforcement action on two of the 15 cases referred to it over the past two years.

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These issues are contributing to the cost of such scams hitting £4.8bn a year. And it’s only likely to get worse, with the budgets for Trading Standards departments set to be slashed.

Clearly, relying on the authorities to keep on top of the scammers is asking too much in the present climate. However, there are things you can do to keep yourself as safe as possible.

Scam ticket websites

Very timely, this one, as we enter festival season. Every year we see more and more sophisticated scam ticketing websites, offering impossibly good deals on tickets for everything from festivals to gigs.

However, while these sites have got better, there are still telltale signs that highlight they are dodgy, from a lack of contact details beyond a PO Box number to the absence of the 'https' prefix of the URL when you move to the transaction page.

Have a read of Eight ways to spot a scam ticket website to ensure you’re on your toes!

Borrowing scams

According to the Office of Fair Trading, a whopping 270,000 borrowers shelled out upfront fees to people to help them secure loans over the past year. Of course, many of those people never actually received the loan.

The authorities are now clamping down on this by revoking credit licenses and issuing fines, while an outright ban on such upfront fees is being lobbied for. For a full guide on these scams, and how to keep safe, have a read of Beware this loan scam!

Phishing, pharming and skimming

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There are all sorts of nifty scams which target your credit or debit cards. Phishing involves the scammers sending out emails, purporting to be from banks or financial institutions, asking for you to click a link and confirm your account details. You should NEVER click on these links, unless you are certain the email has come from your bank.

Have a read of Eight ways to spot a phishing scam.

Pharming works along a similar path, by redirecting people to bogus websites, even if they type in the correct address! This can be done in a number of different ways, but it tends to involve planting a virus in your computer system. So the best way to counteract it is to ensure you have a decent anti-virus system installed, and keep it up to date.

Skimming is when the scammers get hold of your card’s details, and typically involves a skimming machine installed onto an ATM – this is a small machine tagged over the usual card reading slot which quickly scans your details.

There are a number of simple ways to avoid this – only use secure ATMs, cover the keypad as you’re entering your PIN (in case there is a hidden camera observing) and keep your eyes on your card when paying at shops or restaurants in case the waiter or sales assistant is a scammer. Find out more in The top five worst card scams.

Identity fraud

It’s bad enough when a scammer makes off with the cash in your current account, but if they manage to pinch your identity, they can get their hands on even more money, leaving you to pick up the pieces of your decimated credit report.

Last year saw an 11% jump in fraudulent applications for credit, according to Experian, so it’s a growing problem. There are all sorts of ways the fraudsters get hold of the details to steal your identity, from nicking the post you’ve thrown away to following you (and the information you give away) on social networking sites.

Check out The top ten UK fraud hotspots for more on how to keep your identity secure.

Read our Scam Magnet blog!

And finally, each week we publish a Scam Magnet blog, written by Tony Levene. Tony seems to attract scammers like moths to a flame, and highlights some of the worst scams and rip-offs in operation, and how to avoid them. Be sure to subscribe, so you’re always on top of the latest tricks designed to separate you from your cash!

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