The 'money mules' of East London - Though some money mules are in cahoots with the fraudsters many are duped into taking part. Often the money comes from online banking frauds, especially phishing scams when criminals obtain a victim's bank details by sending fake emails. Most have no idea that by helping a criminal they could end up with a prison sentence. - BBC News 04.02.11

BT phone bill arrears scam - BT is warning customers to be on their guard after a series of phone scams involving people claiming to be calling from the company. The scammers call up their victim and warn them that their account is in arrears. They then ask for card or bank details in order to settle the account. If the person refuses or asks for proof, the fraudsters then offer to prove who they are by disconnecting the phone line then and there. Once the victim puts the phone down, the scammer stays connected to their line, thus giving the impression that the customer's line no longer works.

Area affected: Suffolk, Sussex, Kent, Nottinghamshire, Shropshire, Warwickshire, North Yorkshire, Devon, West Midlands and Pembrokeshire.

Bank calling about bank overcharges scam - The man calling already had some personal information about the account holders, helping to lull them into a false sense of security. "The man claims that the account holder has been overcharged on their respective accounts and that he needs to confirm account details before he can proceed. "Sadly, some people have given out or confirmed account details not realising that they are not actually talking to someone from the bank." Bank customers are warned not to give out their personal information over the telephone - after this elaborate scam was uncovered.

IBAS note and comment - All UK bank customers and phone customers should be aware - both scams are regionalized but they could be extended to other parts of the UK as the fraudsters share valuable information and sell it on.

That is now happening in 2010 - so beware - this scam is coming your way!

Other scams that are around at the moment include:

Bogus FSA and FOS communications – letters or emails claiming to be from the FSA or FOS asking for your personal information or money.
Bank charge cold callers – telephone calls or emails out of the blue, offering to help reclaim your charges – often claiming to be from the OFT.
Identity fraud – someone impersonates you without your knowledge, often by stealing discarded or lost documents.
Advance fee schemes – letters or emails that offer you vast sums if you make payments up front.

'New twist' in prize draw scams - Victims of a prize draw scam are being being unwittingly groomed as money launderers for other victims' savings, says a watchdog.

Research by the OFT suggests that as many as three million people a year have lost money to consumer frauds. And the regulator estimates that these mass marketing scams have cost their victims £3.5bn

Visit UK Bank News 2012 for most recent Banking News and you will also find our national newspaper comments plus many more in the News and archives sections of our site - see our site map. IBAS has featured in BBC TV and ITV News items and programmes on banking and the banking issues many times since we were established in 1992.

There are many fraudsters conning unsuspecting people and taking their money. Scam artists are growing in numbers every day using scams both old and new or variations of both to trick you into giving them your money.

The Internet ‘breeds’ such scams and cons as it offers a huge number of people who may be vulnerable, you should be extremely cautious of anyone using a selling ‘pitch’ which just seems too good to be true - it usually is. Also, never agree to release any information or pay any money to any company, or individual, unless they can be verified as legitimate.

Here are some common scams and cons:

Email Foreign Money & Laundering Scams - There are a number of variations on the 'we are seeking funds for the WTC Disaster' or the Nigerian “419” scam which usually explains that 'I am a Nigerian tribal chief with $15M to ship out of the country but need your help' type of email. These scams will always want your details and information and will use your personal or business bank account details or your company letter heading to milk your accounts or take your identity. If you receive any of these delete them and do not respond in any way to them.

Home Opportunities, Working from Home, Start your own small business – any companies advertising opportunities to work from your own home with over optimistic sales language should be regarded with extreme caution. So many want to work from home, or start small businesses and become their own boss that offers of huge earnings or easy pickings look very attractive. Any advert or mail which states they will pay ‘huge earnings’ and that ‘no selling is involved’ or ‘no experience is required’ may seem appealing but they are also likely to be scams particularly if they require a fee for administration or expenses or materials. Legitimate employers never seek any fees. Usually, these scams want someone ‘stuffing’ envelopes but crafting is such a growth industry that ‘new scams’ have grown up offering packs for making cards or sewing clothes or fabrics.

Career opportunity, Wonderful Job, Start your own Business?

Want to be a successful author, inventor, sales agent or advisor? Want the returns from owning your own successful business? Want to reap the rewards of working for yourself? Almost the whole population think they ‘have a book in them’, and others believe they can write a best seller or start their own business. Whether it is a cottage industry or manufacturing and marketing their own ‘inventions’ they all want financial success.

Many want to become authors or writers and others who seek career avenues where they as individuals are basically marketing themselves, choose to use the services of businesses who may promise their guaranteed success – some of these businesses look OK on the surface and will ask for an advance fee for accepting you on their 'books'. It seems like a quick way in to success. Unfortunately, little or nothing is likely to be provided in return for your advance fee, as these are often called advance fee frauds

Prize draw winnings - You get a phone call or a letter, informing you that you just won a prize in a prize draw. You then need to claim your prize by paying an administration fee or by calling the draw organisers using a premium rate phone line. If you call, they keep you on the line while you rack up a large sum on your phone bill. If you receive any ‘offer’ like this you should destroy it. Unsolicited mail however good it may seem should be regarded with suspicion – unless or until it can be properly verified, using alternative sources.

‘Phishing’ – where fraudulent emails appear to come from your bank or other sources of finance or online trading accounts, usually requesting information from you so that they can update your account, their company records, or supposedly for you to remain registered online. They ask you to reply with your full details, such as your name and password. Never respond to these emails. Legitimate companies never ask for personal information by email, so be aware of these scams. IBAS has seen plenty in the last two years and they have become more dangerous as they perfect their methods. Always check the ‘browser’ details for the correct http:// address.

Websites offering to reclaim bank penalty charges - or bank overcharging penalties for bank customers on a ‘no win – no fee’ basis.

Bank charge cold callers – unsolicited telephone calls, cold callers or emails, offering to help you reclaim your bank charges – often claiming to be from IBAS the OFT or FOS. None of these organizations would make any unsolicited contact with you.

Fund transfer schemes – money–laundering scams that tempt you to use your bank account by offering a commission for feeding funds through your accounts. You could wind up with losing your own money and a prison sentence as well.

See What is a money mule?

Boiler room fraud or Share scams – a stranger rings you out of the blue and tries to offer you shares in a company you have never heard of. They typically sell shares to unsuspecting members of the public by cold-calling them. They then persuade their victims to buy shares that are worthless or have little value.

'Boiler rooms' are usually based overseas but sometimes operate with the help of "front" organizations in the UK and they 'channel' the money abroad. The FSA has no jurisdiction overseas but tries to close down any boiler room activities here.

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