This content is for information and inspiration purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice regarding your affairs please consult us here at WMM (financial planning in Oxford).
With the UK edging its way out of lockdown, sadly there appears no shortage of unsavoury people seeking to exploit the situation for financial gain. Here at WMM, we wanted to draw your attention to five types of scam which have become more prevalent during the 2020 coronavirus pandemic. Please get in touch for more information or if you are at all concerned about the security of your financial plan.
#1 Pet scams
With many people experiencing a heightened sense of loneliness under the UK’s social isolation measures, online searches for pets have noticeably increased. Scammers, unfortunately, have also noticed this trend and have been publishing a range of online adverts for fake puppy and kitten sales (e.g. on Facebook). The advert asks for an up-front deposit simply to steal credit card information. Be wary of anonymous adverts such as these, and consider only approaching a reputable breeder if you are considering a pet purchase.
#2 Fake tracing apps
The UK government had announced trials for an NHS app earlier this year, which would help counter the pandemic through digital “contact tracing”. The status of these plans are now not certain in June 2020, yet many people are unaware of fake apps posing as government apps such as this one. These can appear on trusted marketplaces such as the Apple Store and Google Play, and seek to steal personal information once downloaded to your phone.
#3 Council tax holidays
Many homeowners were relieved earlier in 2020 when the government announced that lenders would be required to offer people “mortgage holidays” for those unable to meet their monthly repayments due to the pandemic. However, the Chartered Trading Standards Institute (CTSI) has reported that, in certain parts of the UK, scammers have been posing as a local council representative to homeowners via email to offer a fake “council tax holiday”. The email usually contains a link to a website posing as the local council, to steal credit card information.
#4 PPE aid
Most of us will have seen the headlines about the UK’s ongoing shortage of personal protective equipment (PPE) during the peak of the pandemic. People have longed to offer support to help NHS workers on the front line facing these shortages. Again, scammers have noted this and sought to exploit this compassion by offering people fake hygiene products (e.g. masks and hand sanitiser crates), which they might hope to donate to the NHS. Here, you can protect yourself by only approaching trusted vendors and by using your credit card, not your debit card.
#5 The Job Retention Scheme
The UK government announced a significant policy in its March 2020 budget to help workers and businesses across the country, the Job Retention Scheme. Here, 80% of a furloughed worker’s salary could be covered by the government (up to £2,500 per month). Yet many employers have not known the precise steps to apply for this scheme, leaving them open to scams. One notable trend involves a fraudulent individual sending an email to a company director pretending to be HMRC. They request payment information in order to set up a funding channel for the company to access the funds from the Job Retention Scheme. In reality, however, the scammer merely steals the banking details of the business – potentially causing irreparable harm to its finances.
Invitation
The above are just a handful of the dangerous scams noted by our team in Oxford, the local authorities and financial watchdogs. There are other, highly-elaborate scams in addition to these and we urge clients and the wider public to be extra vigilant at this time.
If you are interested in starting a conversation about your financial plan, then we’d love to hear from you. Get in touch today to arrange a free, no-commitment consultation with a member of our friendly team here at WMM.
Reach us via: 01869 331469
