11 months ago
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Image source, Sorcha Beeson
Sorcha and Max were scammed out of nearly £1,000 during the months-long renovation of their houseboat
By Dan Whitworth
Money Box reporter, BBC Radio 4
Almost £100m is forecast to be stolen from thousands of victims this Christmas, High Street banks warn.
Trade body UK Finance, together with Trading Standards, say people need to be on their guard over the festive period.
And scams generated by artificial intelligence (AI) are "enhancing the threat", according to intelligence agency GCHQ.
It says 25 to 34-year-olds are most likely to fall victim.
The National Cyber Security Centre, which is part of GCHQ, is warning that cyber-criminals are using AI to produce more convincing scam emails, fake adverts and websites.
'Reverse psychology'
Occupational therapist Shayla lost money in November after paying a £60 deposit for a sofa she wanted for Christmas.
The 24-year-old, who lives alone in Birmingham, was the victim of a purchase scam - she was tricked into paying for an item that never turned up.
She told the BBC the scammer used "reverse psychology" on her and said he had been scammed before himself.
"He made me feel guilty for him... so I think that's what made me feel like I could believe him because he said he'd been a victim of scams himself."
Purchase scams, along with advance fee fraud and fake delivery texts are the most common scams used by fraudsters.
Tattoo artist Sorcha Beeson also fell victim to a purchase scam earlier this year - and lost almost £1,000 while renovating her houseboat with boyfriend Max in London.
Image source, Sorcha Beeson
Image caption,Sorcha wanted a new shower and fell victim to a purchase scam. She eventually got a refund from her bank
"Once it's happened then you know that's a possibility, which is really scary," she said.
"It has made me more sceptical. I'm constantly aware and unsure and a bit untrusting, which is a shame."
'Criminals will try anything'
Ben Donaldson, managing director of economic crime at UK Finance, said "unscrupulous criminals" exploit the festive season to target people.
"Whether selling fictitious goods online, impersonating delivery companies or offering you loans for festive shopping, criminals will try anything to ruin your holidays and steal your money."
Mr Donaldson said up to £100m could be stolen via payment fraud in December alone and advised shoppers to follow the Take Five to Stop Fraud campaign. "It could save your Christmas," he added.
Scams to look out for and how to protect yourself
- Purchase scam: This is when people are tricked into paying money for things that will never turn up. Be wary of products for sale at too good to be true prices on social media. Also beware fake websites, which look like a genuine retailer's website. Read reviews and only buy from authorised sellers and websites.
- Fake delivery text messages: Text messages asking for a fee for delivery of a parcel are often part of a wider impersonation scam. If you click on a link and provide information, you may then get a phone call from someone claiming to be from your bank offering to help safeguard funds by convincing you to transfer money into a "safe account", which is actually run by the criminal. Your bank will never ask you to move money to a safe account.
- Advanced fee fraud: This is when fraudsters try to get you to pay a commission fee or a deposit to progress with a job or loan application, which will never materialise. It is important to check the recruiter or loan company you are speaking to is genuine, read reviews beforehand, and be wary of any financial requests.
Source: UK Finance and Trading Standards
Two types of fraud
Of the nearly £100m that it is estimated will be stolen this Christmas, most of that is unauthorised fraud - when people have card or bank details unknowingly stolen and then used by criminals.
This type of fraud should be refunded by banks under the Payment Service Regulations.
Refunds for authorised push payment (APP) fraud, when victims are tricked by criminals into transferring money, belong to a more grey area of consumer rights and regulations.
Most High Street banks have signed up to the Contingent Reimbursement Model (CRM) code which obliges them to refund innocent victims of APP fraud but it can be difficult.
Sorcha and Max, classed as victims of APP fraud, were reimbursed by their bank after several months.
"Eventually we did get the money refunded, which was such a massive weight lifted off our shoulders," said Sorcha.
"But it was months and months later... and I was starting to accept we had lost £1,000. [Then] out of the blue it arrived back in my account thankfully, but a long time later."
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