Warnings on phone fraud

HM Revenue & Customs (HMRC) is warning about fraudsters making telephone calls pretending to be from HMRC. The thieves will tell you that you have a tax rebate due and ask for your bank details in order that they can send the money directly to you. Having got your details the fraudsters will either sell your details on to others or try to empty your bank account themselves. HMRC say that they will never phone asking for bank details.

This latest scam comes as a variant on a similar e-mail scam campaign. Over 180 websites involved in issuing fake HMRC e-mails have been closed in the last three months alone.

The warning from HMRC is the latest in a continuous stream of warnings about potential frauds involving telephones. From pretending to be from your bank or local council to telling you that you have won a prize, the fraudsters will come up any story that they can to get your bank or credit card details from you. The golden rule is, if someone has phoned you then don’t hand out details.

Trying to get hold of your bank details is not the only fraud involving the use of telephones. Missed call or text message fraud is another lucrative earner for the fraudsters. You ring or text back and are stuck with a premium rate bill of several pounds. Texting back can be even more costly as this can imply consent to be charged for all future texts that the fraudsters send you.

Businesses also need to be on their guard against Dial Through fraud. This happens when hackers get access to a company’s telephone exchange and make lengthy international or premium rate calls at the company’s expense. Most frequent around Christmas and Easter when telephone monitoring is light, Dial Through fraud can cost a company tens of thousands of pounds before it is caught.

Companies can protect themselves from Dial Through fraud by taking a few simple precautions. Firstly, make sure that staff understand the dangers and keep any passwords secure. Restrict access to password set up and change passwords frequently. Secondly, if you don’t normally make international calls then restrict your phone service so that international or premium rate calls are barred, remembering also to bar access to the international operator. Finally keep a close eye on your call logging reports and take action as soon as any unusual activity appears.

It is estimated that telephone fraud costs the UK over a billion pounds each year. With a little common sense and vigilance we can all play our part in cutting this figure and at the same time make our private and business finances more secure.