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Fraud Beware Of The Fraudsters
ccording to Which, the The “My money is frozen in an
consumer watchdog, about 5 overseas account” scam.
million of us have been
targeted by fraudsters and have It normally starts with an e mail
lost money as a result. giving a long and involved sob
Fraudsters are clearly finding story about someone or some
rich pickings! business, which has a very large
amount of money tied up in an
So what are the most widespread account and, through the most
scams and how do you steer clear unfortunate of circumstances,
of them? Here are six scams to be they cannot get the money out. To
aware of. do so, they need a UK bank
account to have the money paid
You've won a lottery prize into. Of course, if you help them
they will give you a big slice of
Here you receive a letter, or the money. And the money is
e-mail telling you that you've always held in a some obscure
won a big prize on some lottery country, often in Africa.
you've never heard of. All you
have to do is pay an Another really common fraud. It
administration fee to claim your starts with an e-mail giving a
prize. The alternative approach long sob story about someone or
is to get you to call a premium some business, which has a large
phone number to claim. amount of money, often $
millions, tied up in a overseas
Guess what – there's no big win bank account. Through the most
and there never was! This scam unfortunate circumstances, the
catches out tens of thousands of money is frozen and they can't
people every week. withdraw the money. To do so,
they must have a UK bank account
to pay the money into. Naturally, either way, you'll never see any
if you help them, they'll give of your money again!
you a good slice of the money and
you'll be rich! Millions receive these e-mails
every month, so if you get one,
Invariably the money is always delete it.
held in a some obscure country,
often in Africa. Then, once Boiler Room scams
you've taken the bait, they come
up with stage two of the scam. This is a hard-selling technique
They say that for the money to be often targeting middle aged
transferred to your account, you professional people with some but
need to send a payment, often limited investment experience.
thousands, to cover the The fraudsters often trace their
administration or legal costs of targets by searching for small
facilitating the money transfer. shareholders in the share
The actual details always change, registers of UK quoted companies.
but the bones of the story remain
remarkably consistent.
They then contact their victims
Will the payment arrive? Will you by phone or e-mail to persuade
ever get your money back? Of them to buy shares in obscure
course not! In fact, after you've companies on the promise of great
made a payment, they'll ask for returns - all turn out to be
more! The up-front money has to worthless. Sometimes they even
be increased and, unless the try to sell shares in companies
extra is sent, the money you've that don't even exist. Similar
already sent will be lost. It versions of the same basic scam
puts you in a classic catch 22 involve currency investment,
situation. But not really - futures or stock options.
If you receive an approach from
an organisation trying to sell This means that if a fraudster
you investments, ask for their can get hold of your credit card
Financial Services Authority details he'll happily use it to
(FSA) registration number. Under buy on the Internet. Then he
the UK's regulations everyone fades into the mist with the
promoting investments must be spoils, often to sell them for
regulated by the FSA. If they cash.
won't or can't supply the number,
put the phone down. If they do To reduce your chances of being
give you a registration number, caught by credit card fraud, you
don't agree to anything until should sign up to “Verified by
you've phoned the FSA's help Visa” or “Mastercard Secure
line. There you can check out Code”. You'll find further advice
that the firm is indeed genuine. about credit card fraud on
(call 0845 606 1234). Remember, www.getsafeonline.org and
never commit yourself until you www.cardwatch.org.uk.
are absolutely sure that the
company is reputable. 9 times out Phishing
of 10 it won't be – you have been
warned! Fraudsters are also highly active
on the Internet persuading bank
Credit Card Fraud account holders to disclose their
banking details, security codes
The introduction of PIN numbers and PIN numbers.
has greatly reduced credit card
fraud. But purchases through the The fraud kicks off with a bogus
Internet use the “card holder not e-mail apparently from your Bank.
present” system, not PIN numbers. The e-mail always explains that
for security reasons, it needs
you to confirm your account Every four minutes an identity
details. Often it says that theft takes place in the UK.
unless you complete the security
confirmation, your account will If fraudsters can get your
be frozen. But security is the personal details, they can apply
least of their concerns – once for credit and open bank accounts
the fraudsters have your bank in your name. This inexorably
details, they'll simply empty leaves a trail of criminal
your account! activity and debt - all conducted
in your name.
You should be aware that Banks
never ask you to send them All the fraudster needs is a
confidential security details by utility bill in your name and a
e-mail or by any other method. If credit card or bank statement. So
the Bank does need to confirm watch out for unauthorised bin
some confidential information, men! Better still, shred any
they'll usually ask you to visit personal letters, bills and
a Branch. documents you need to dispose of.
Identity Theft
About the Author:
Michael writes for Brokers Online who offer Loans and most UK financial services including Credit Cards .
Source: www.isnare.com |
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