Tackling the UK’s Scam Calls Epidemic: Preventative Strategies for Organisations and Individuals

The United Kingdom has Europe’s highest fraud call rate at 9.3%, with people frequently targeted by scammers posing as loved ones, Amazon representatives, and HMRC officials. The prevalence of scam calls in the UK has been a significant concern, particularly in light of recent surveys that assess cyber security and related threats to businesses and charities.

The prevalence of scam calls in the UK has reached alarming levels, representing a significant challenge to consumers, businesses and authorities alike. UK Finance figures for 2023 show 35,000 reported cases of impersonation scams, resulting in losses of £136m. The issue of scam calls is notable not only for its financial implications but also for the emotional toll it takes on victims.

Types of Scam Calls

Scam calls have evolved, targeting individuals through various methods by impersonating different organisations. Scam calls have evolved in sophistication and variety, employing tactics such as phishing, tech support fraud, and impersonation to target specific demographics, including vulnerable elderly individuals. Recognising these scams is essential for protection.

• Phishing Scams: Fraudsters impersonate legitimate organisations, urging victims to provide personal or financial information, often using urgency as a tactic. HMRC phishing scams are particularly widespread.
• Tech Support Scams: Scammers pose as IT representatives, claiming the victim’s computer is compromised, then demand payment for unnecessary services.
• Investment Scams: These scams entice victims with fake investment opportunities, promising high returns. In 2022, £114 million was lost to such scams in the UK.
• Safe Account Scams: Callers pretending to be bank representatives or police instruct victims to transfer funds to a “safe account,” which is actually controlled by the scammer.
• Romance Scams: Criminals establish relationships through social media or dating platforms, eventually asking for money or personal information.
• Refund Scams: Scammers claim the victim is owed a refund, requesting personal information to facilitate the fake refund.
• Impersonation Scams: Fraudsters pretend to be friends or family in urgent need of financial help, a tactic that affects over 40% of those aged 55 and older.
• Robocalls: Automated calls, accounting for 60% of scam calls, deliver scripted messages to solicit personal information or payments.
• Lottery and Prize Scams: Victims are told they’ve won a lottery or prize, but must provide personal information or payment to claim it, exploiting their hopes of financial gain.

Major Scam Platforms and Warnings

Recent actions against high-level fraudsters highlight the scale of the problem:

NCA Dismantles Russian Coms Platform: Last week, the National Crime Agency (NCA) shut down a major fraud platform known as Russian Coms, which was responsible for 1.8 million scam calls worldwide. Established in 2021, the platform enabled criminals to impersonate financial institutions and law enforcement agencies, leading to significant financial losses, particularly in the UK. Over 1.3 million calls were made to 500,000 UK phone numbers, with victims losing an average of £9,400. The platform was marketed on social media and offered services like spoofed calls and encrypted communication. The NCA has arrested three individuals linked to the platform, with further action planned against its users.

Sky UK Warns of Fake Premium Rate Call Sites: Sky UK recently issued a warning to its customers about scam websites that are manipulating Google search results or using deceptive ads to trick users into calling premium rate numbers instead of the correct Sky support numbers. These fraudulent sites often mimic Sky’s official website, leading unsuspecting customers to phone numbers that charge extremely high rates, sometimes over £10 per minute. Sky clarified that they never use premium rate numbers for customer support and advised customers to be cautious when seeking their services online.

Enhanced Regulations to Tackle Call Scams

With robocalls accounting for a significant portion of scams, there’s an urgent need for stronger prevention measures. Consumer advocacy groups and government bodies are pushing for enhanced regulations, including incorporating scam advertisements into the Online Safety Act, which aims to strengthen content policing on digital platforms. The UK’s regulatory framework, overseen by Ofcom and the ICO, faces challenges in enforcing compliance as scammers’ tactics evolve. Legislative efforts are increasingly focusing on imposing a duty of care on online providers to combat scam calls effectively.

Prevention Strategies for Individuals

It is crucial for individuals to report nuisance calls to help identify and punish offenders. The appropriate authority for reporting varies based on the type of call: live sales and marketing calls should be reported to the Telephone Preference Service (TPS), while silent calls should be directed to Ofcom, and scams should be reported to Action Fraud. Consumers are encouraged to document the details of the scam, including names, numbers, and any suspicious behaviours, to facilitate effective reporting.

Prevention Strategies for Businesses

To prevent telemarketing scams, organisations should regularly audit practices, monitor calls for legal compliance, and train staff on current regulations to minimise violations. Maintaining detailed consent records and TPS checks is crucial for demonstrating due diligence to the ICO and building consumer trust. Clear internal policies on telemarketing should be communicated to all relevant staff to ensure consistent legal and ethical standards. It’s also essential to respect opt-out requests, promptly removing individuals from call lists to maintain compliance and reputation. Appointing a Data Protection Officer (DPO) can enhance data protection compliance. A collaborative approach, including better reporting and data-sharing mechanisms, is key to quickly identifying and preventing fraudulent activities.

Conclusion

The rise in scam calls poses a serious threat to consumer safety and public wellbeing in the UK. It underscores the need for heightened awareness, robust prevention strategies, and collaborative efforts to protect individuals and businesses from these increasingly sophisticated and damaging fraudulent activities.

How AJC Can Help

AJC works with organisations across all sectors to help prevent, detect, and respond to all instances of fraud, including scam calls. We aid organisations in pinpointing significant fraud risks, evaluating both internal and external control measures, advising on training needs, and constructing fraud risk frameworks.

Please contact us on 020 7101 4861 if you think we can help.

Priscilla Du Preez (March 2018) on Unsplash.com. Last accessed on 4th September 2024. Available at: https://unsplash.com/photos/woman-sitting-on-ground-holding-smartphone-near-building-7IcTZbH7s7g