Energy bill and tax rebate scams on the rise

Scams focusing on energy bill deals and council tax rebates to trick people into handing over their money are growing as cost of living rises, a banking trade body has said.

Criminals were "building on people's fears" of high prices, UK Finance said.

Fraud where people were duped out of money and personal details surged 39% in 2021 compared with 2020.

In total, £1.3bn, the most on record, was stolen through fraud in 2021, an 8% increase from the year before.

So-called authorised push payment fraud - when victims think they are paying a genuine organisation - rose by 39% to £583m.

UK Finance said criminals are exploiting "weaknesses outside of the banking system", often through online and social media platforms.

Fake delivery texts asking for payment or NHS Covid-19 pass scams during the height of the pandemic were now being replaced by schemes focusing on cost-of-living challenges.

Criminals also impersonated a range of organisations such as the NHS, banks and government departments via phone calls, text messages, emails, fake websites and social media posts to target people.

While people of all age groups were falling victim to such scams, UK Finance said it was younger age groups that were "often the prime target".

Authorised push payment fraud losses outstripped fraud losses on bank and credit cards for the first time in the first half of 2021. Investment fraud cases surged by 57% and impersonation scams rose 36% on the year before.

But less than half (47%) of losses were returned to victims of authorised push payment fraud.

Katy Worobec, managing director of economic crime at UK Finance, said there had also been a hike in investment scams where criminals set up fake cryptocurrency websites featuring celebrities supposedly endorsing them on social media.

The Dedicated Card and Payment Card Unit, a specialist police unit that targets the organised criminal gangs behind fraud, prevented £101m of fraud in 2021 - the largest amount in the unit's 20-year history, UK Finance said.