Criminals offering fake help with fuel bills in digital wallet scam

Criminals are claiming to help people cut their winter fuel bills in a scam which enables them to set up digital wallets using victims’ card details, fraud prevention bodies are warning.

Cyber Defence Alliance, UK Finance and Cifas have teamed up to warn consumers about the mobile phone scam, which has links to international crime groups.

Fraudsters are making fake offers on social media and sending out texts with malicious links on which people are encouraged to click.

Messages 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.

But what criminals are actually trying to do is encourage people to divulge their bank’s one-time passcode, so they can link the victim’s card details to a digital wallet set up by the scammer.

Once a victim has clicked on a bogus advert or text message, they are taken to a website and asked to provide card details.

When the details have been entered, the person will then see a request on the screen for a one-time passcode, that the fraudsters claim they have just sent.

In reality, the passcode has been sent by the bank, because the fraudsters have registered to open a new digital wallet.

Victims may enter the OTP because they believe they are buying services or goods or perhaps paying a fine – but in fact they are authenticating the digital wallet.

People who believe they will be getting help with their fuel bills hand over their personal details in the belief that they will be receiving payments or an “allowance”.

As a result of the scam, criminals can make both online and in-store purchases using the victim’s card details.

Dianne Doodnath, principal of economic crime at banking and finance industry body UK Finance, said: “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 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.”

Garry Lilburn, operations director at Cyber Defence Alliance, said: “Our investigations have shown that international organised crime groups are orchestrating these scams and selling on compromised card details so other criminals can easily buy goods and services.

“It is vital consumers remain sceptical of offers that are too good to be true and that ask for card details.”

Mike Haley, chief executive of Cifas, said: “Scammers are using new technology to change their tactics at speed and find new ways 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.”

People can report suspect text messages by forwarding them to 7726.

The Take Five to Stop Fraud campaign urges people to protect themselves by taking a moment to pause and ask themselves whether a request could be fake.

People can also get a second opinion from someone they know and trust, such as a family member, a close friend or their bank or building society.

Many banks have signed up to the 159 service that helps people to contact their bank by using an easy-to-remember number.

A spokesman for gas and electricity regulator Ofgem said: “Protecting consumers is our top priority and it is alarming that customers are being preyed upon when people are already struggling so much with energy bills.

“We take attempts to exploit consumers very seriously and work with the National Cyber Security Centre to prevent these malicious attacks, identifying and rapidly responding to over 100 of these phishing campaigns last year alone.

“As energy regulator, on top of issuing our own warnings and advice, we have asked all energy suppliers to ensure clear and up-to-date information on scams is easily accessible on their websites.”