Fraudsters are capitalising on the new rules set out by the Budget in order to snare victims, according to posts and messages seen by This is Money.
The criminals have targeted people via fake messages and websites which offer them a ‘winter heating subsidy’ or a refund on tax payments.
The messages claim to be from official sources such as His Majesty’s Revenue and Customs, and direct them via a link to another website where they are asked to pay money or enter personal information.
Many mention Rachel Reeves and the Budget, hoping to tap in to people’s concerns about how the announcements might affect their finances.
Cashing in: Fraudsters are capitalising on Labour’s Autumn Budget in order to scam vulnerable victims
In many cases, scammers are turning to email and text message scams, known as phishing and smishing, which see them send messages claiming to be from Government departments such as HMRC.
In examples of these scams posted on social media, scammers offered winter heating subsidies and living expense subsidies.
One text message scam read: ‘Once the number of applicants is enough, we will stop issuing winter heating subsidy benefits,’ and directed victims to click a link to sign up for the free payments.
These scammers are looking to gain access to victims’ bank details or personal information.
Worryingly, fraudsters are increasingly replicating legitimate websites in order to make their scams more believable and less likely to be detected.
Smishing scam: Fraudsters are offering false winter heating subsidies
One example masquerading as a BBC News article promoted a £2,300 per month ‘social benefit scheme’ requiring a £200 initial deposit in order to start receiving payments.
One line in the mock story read: ‘According to Chancellor of the Exchequer Rachel Reeves, there are about 800 free places left on the platform.
‘Even if you haven’t decided yet whether you want to receive compensation from the state in the amount of £2,300 per month, we strongly recommend that you fill out the registration form to reserve an account for yourself.’
Lauren Hendry Parsons, privacy advocate at privacy software company ExpressVPN, said: ‘Unfortunately, scams like these are increasing in frequency and sophistication, especially around events such as The Budget.
‘National events with a high media profile and significant social media commentary around them are a chance for scammers to exploit people’s concerns and worries.
‘Scammers will take advantage of the complexity of financial changes to leverage people’s desire to either avoid potential losses or boost investments.’
Another showed a false quote from LBC broadcaster Iain Dale: ‘Iain Dale: ‘I have no doubt that this is legal, our lawyers have checked everything. So you want to say that any citizen over the age of 35 can invest £200 in this project and receive £2,300 from the state on a regular basis?’
Scammers use these mock-websites to pass their scams as genuine opportunities to prey on the vulnerable and desperate.
Trick: Scammers replicate legitimate websites such as the BBC in order to dupe victims into revealing their financial information
Another scam seen by This is Money showed a mock-up of the Government website, Gov.UK, requesting users to enter their full name, number and address, as well as their email address and debit or credit card data in order to be eligible for a £900 payment.
Hendry Parsons said: ‘Fake adverts and deepfake images and videos have escalated dramatically thanks to the latest advancements in AI tools, coupled with their widespread accessibility. Now, it’s possible for any person to create fake images, videos and adverts that are almost indistinguishable from genuine ones.
It is crucial for individuals to exercise caution before acting on any advert that promises to halve their tax bill or double their investments
‘This technological leap has significantly lowered the barrier for scammers, enabling them to craft convincing fake news-style articles – often claiming to offer advice on reducing tax bills or boosting investments. But, in reality, these are schemes designed to steal your hard-earned cash.
She added: ‘Given this, it is crucial for individuals to exercise caution before acting on any advertisement that promises to halve their tax bill or double their investments.
‘The age-old adage holds true: if something seems too good to be true, it probably is.
‘To verify the legitimacy of an advertisement related to a specific announcement in the Budget, you should check if the information is available on an official government website (ending in .gov.uk), or a reliable and well-known media source.’
How can you protect yourself from these scams?
At the most basic level, if an offer you receive or see online sounds too good to be true, then it probably is.
‘Scammers use flashy and catchy imagery to promise high returns on investments with little risk. These schemes often lure victims with the promise of quick and easy money, only to disappear once they have collected the funds,’ Hendry Parsons told This is Money.
Of course, the scam may not seem wildly unrealistic, especially if it appears to be from a legitimate source.
‘Scams of this kind are now something we all must be aware of when browsing online and using our digital devices – especially given that our own money is at risk,’ Hendry Parsons added.
‘Individuals should be aware of phishing emails that appear to be from reputable financial institutions that can trick individuals into revealing personal information.’
In the case of the budget, scammers are making the most of concerns and panic around the future of the country’s finances.
Because of this, it is important to confirm the information you are reading from other sources.
Hendry Parsons said: ‘If an advert uses a politician’s face or quotes from them, you should check their official social media accounts to see if it’s something they have genuinely said or done.’
Even if you think something is legitimate, take the time to check website addresses, emails and to call back a company using an official number to make sure that you are talking to who you think you are.
Instances of fraud can be reported to the authorities in a variety of ways, including by forwarding suspicious emails to [email protected], reporting suspicious texts and calls to 7726 free of charge, and by contacting Action Fraud.
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