Cifas, the UK fraud prevention trade body, is warning those applying for the new ‘breathing space’ scheme to ensure that they check anyone offering this service is registered to do so, before handing over their details.
Under the new Debt Respite Scheme, those receiving debt advice can apply for a break of up to 60 days from additional interest and charges being applied to their debts. However, Breathing Space can only be initiated by debt advice providers authorised by the UK regulator the Financial Conduct Authority (FCA) to offer debt counselling or councils which provide debt advice to residents.
Cifas is reminding those looking to apply for a Breathing Space break to check the FCA’s Financial Services Register to see that any firm or person offering this service is regulated to do so before handing over their personal and financial details. Once the register has been checked, those seeking help should only contact the provider offering the service using details listed on the FCA register to ensure the authorised adviser isn’t being impersonated.
Cifas has warned of a WhatsApp scam with messages purporting to be from The Money Advice Service asking recipients to send bank statements, payslips, ID and letters from creditors. It is likely that any details or documents provided in such scams will be used to impersonate the victim to set up new credit facilities or take over accounts, Cifas warns. If you do believe you have fallen for a scam and have provided your details or documents, report the case to the police reporting line Action Fraud, or to Police Scotland if you are Scottish resident. You should also consider applying for a Protective Registration with Cifas to protect yourself from being impersonated with any Cifas member organisation.
Amber Burridge, Head of Fraud Intelligence for Cifas, said: ‘Scammers are quick to take advantage of any new situation where they believe they can trick an individual out of their details or money. When it comes to providing debt advice, the FCA’s Financial Services Register provides a single source of businesses and advisers that are authorised to offer financial advice to those who need assistance.
‘With many individuals in these circumstances potentially feeling vulnerable, it is important they take extra steps to ensure they are dealing with legitimate sources of assistance and can trust those who are helping them.’
