Even in the post-Brexit world that we now find ourselves in, there is still significant confusion, persisting fears of covid-19, and the quickly approaching end of the tax year all combine to present criminals with an ideal opportunity, says Toby Carlin, Senior Director of Fraud Consulting EMEA, at the analytic platform FICO.
Unpaid tax warning – Criminals have come up with a new twist on the unpaid tax scam. The fraudster sends out an email or makes a phone call impersonating an HMRC employee, stating that the victim has not paid all their taxes and faces a jail sentence if they do not do so immediately. In the Brexit version, the scammer may say that the victim needs to pay now, or new rules will come into play that will increase the tax debt or even limit the ability to do business.
Get-rich-quick – Another scam taking place is based around investment. Fraudsters will make contact, usually through email, to disclose information about a company that is going to succeed after Brexit has happened. This get-rich-quick scam requires an investment from the victim after the fraudster describes the potential gain.
Invalid passport – We are also seeing a passport scam, in which criminals tell victims that their passport will no longer be valid, in the hopes of getting the passport information, which can then be used in nefarious ways. In addition, the victim may be coaxed into paying for a new passport – a double win for the criminal.
How to handle
We are seeing a high number of Brexit scams now taking place; the first step in prevention is vigilance. Fraud cannot be stopped if it’s not spotted first.
– Look for official government advice on anything concerning Brexit;
– Make sure to conduct your own searches for information and always use a reputable source;
– Watch out for calls or emails that pressure you to make an instant decision or you will lose money, be fined or miss out on a great opportunity — this is one characteristic of scams;
– Never open attachments if you weren’t expecting the email and don’t know the source. Brexit scam emails may include attachments that you “must read now” or “must complete today” and these attachments can release malware;
– Be wary of exaggerated claims. Some scammers are telling victims that if they don’t make a payment now their Amazon account will be cancelled, or their bank account will be frozen. HMRC would, of course, do neither to resolve a late payment; and
– Ask yourself if you are expecting the email/communication and if not – be wary.
Fraudsters are also using more layered attacks. In multi-channel scams, fraudsters send out a mass phishing email saying, for example, companies must complete a checklist to prepare for Brexit. There are often deadlines associated to impart a sense of urgency. The email is followed up with a phone call, which could eventually lead to a financial transaction. This is a volume-based attack where fraudsters are looking to see who nibbles and then defraud them. To execute these scams, criminals are using the same kinds of auto-diallers and communication methods used by the majority of reputable institutions.
