Urgent winter fuel payment scam warning as fraudsters use new trick

Fraud prevention experts are sounding the alarm on a scam where criminals - pretending to offer help with cutting winter fuel bills - trick victims into setting up digital wallets with their card details.

The Cyber Defence Alliance, alongside UK Finance and Cifas, are collaborating to caution consumers about this mobile phone scam that has connections to international crime syndicates.

Using fake offers on social media and sending malicious text messages that victims are persuaded to click on, these con artists disguise their messages with promises of financial "help", like applying for a living allowance to lower heating costs or alerting them to an undelivered parcel.

However, the real aim is to trick individuals into sharing a one-time passcode (OTP) from their bank, allowing scammers to link the victim's card to a digital wallet they control. When someone falls for a phony ad or text and enters their card information onto a deceptive website, they'll be prompted for a one-time passcode - allegedly sent by the crooks but actually issued by the bank due to the new digital wallet registration.

Victims might input the OTP under the false impression they're purchasing products or paying a fine, but are instead giving the scammer access to their funds through the digital wallet verification, reports the Express.

People who believe they will be getting help with their fuel bills hand over their personal details in the belief that they will be receiving payments or an "allowance". As a result of the scam, criminals can make both online and in-store purchases using the victim's card details.

Dianne Doodnath, principal of economic crime at banking and finance industry body UK Finance, said: "Criminals are sophisticated and will make every attempt to steal personal and financial information.

"We encourage customers to be alert to potential threats of fraud, be cautious of sharing personal and financial information and avoid sharing OTPs with requests out of the blue. If consumers think they've been scammed, it's important to contact their bank immediately and report it to Action Fraud."

Garry Lilburn, operations director at Cyber Defence Alliance, said: "Our investigations have shown that international organised crime groups are orchestrating these scams and selling on compromised card details so other criminals can easily buy goods and services. It is vital consumers remain sceptical of offers that are too good to be true and that ask for card details."

Mike Haley, chief executive of Cifas, said: "Scammers are using new technology to change their tactics at speed and find new ways to abuse consumers' trust and steal from their bank accounts. We urge people to stop and think twice about any communications received unexpectedly and never act on urgency."

People are being advised to forward suspicious text messages to 7726 as part of a comprehensive warning issued by the Take Five to Stop Fraud campaign, highlighting the importance of taking a moment to consider if requests received could be fraudulent. The campaign also suggests that people should seek opinions from trusted individuals in their lives, like family or friends, or directly from their bank or building society.

In addition, many banks are now participating in the 159 service, offering customers an easy-to-remember number to contact their bank securely. An Ofgem representative has voiced grave concerns about customer exploitation amid rising energy bills: "Protecting consumers is our top priority and it is alarming that customers are being preyed upon when people are already struggling so much with energy bills."

They added, "We take attempts to exploit consumers very seriously and work with the National Cyber Security Centre to prevent these malicious attacks, identifying and rapidly responding to over 100 of these phishing campaigns last year alone."

Furthermore, the spokesperson highlighted Ofgem's proactive measures, saying, "As energy regulator, on top of issuing our own warnings and advice, we have asked all energy suppliers to ensure clear and up-to-date information on scams is easily accessible on their websites."