Criminals claiming to help people cut their winter fuel bills in digital wallet scam

Fraud prevention bodies, including the Cyber Defence Alliance, UK Finance and Cifas, are warning that criminals are exploiting people's desire to cut their winter fuel bills in a new scam.

The fraudsters set up digital wallets using victims' card details by making fake offers on social media and sending out texts with malicious links. These messages often appear as offers to "help", such as reducing winter heating bills or notifications about an undelivered parcel.

However, the real aim is to trick people into revealing their bank's one-time passcode, allowing the criminals to link the victim's card details to a digital wallet they control. Once a victim clicks on a bogus advert or text message, they are directed to a website where they are asked to provide card details. After entering these details, they will see a request for a one-time passcode, which the fraudsters claim they have sent.

In reality, the passcode has been sent by the bank because the fraudsters have registered to open a new digital wallet. Victims may enter the OTP believing they are purchasing services or goods or perhaps paying a fine – but in fact, they are authenticating the digital wallet.

Scammers are targeting vulnerable individuals by promising assistance with their fuel bills, tricking them into divulging personal details in anticipation of receiving payments or an "allowance". This scam allows criminals to make online and in-store purchases using the victim's card information.

Dianne Doodnath, principal of economic crime at UK Finance, cautioned: "Criminals are sophisticated and will make every attempt to steal personal and financial information." She advised customers to be vigilant, exercise caution when sharing personal and financial information, and avoid sharing one-time passwords (OTPs) in response to unsolicited requests.

If consumers suspect they've been scammed, they should immediately contact their bank and report the incident to Action Fraud. Garry Lilburn, operations director at Cyber Defence Alliance, warned: "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."

He emphasized the importance of consumers remaining skeptical of offers that seem too good to be true and request card details. Mike Haley, chief executive of Cifas, stated: "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."

He urged people to pause and think twice about unexpected communications and never act under pressure. People are being encouraged to immediately report suspicious text messages by forwarding them to 7726.

The Take Five to Stop Fraud campaign is advising the public to always take a moment and think before responding to any requests, as they could be fraudulent. To avoid falling prey to scams, individuals should seek a second opinion from trusted sources like family, friends or their financial institution.

A number of banks are now part of the '159' service, which offers an easy-to-remember number to facilitate direct contact with one's bank. An Ofgem spokesperson expressed concern, saying: "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."

"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."

The spokesperson further indicated that Ofgem mandates energy suppliers to provide clear, up-to-date scam information on their websites for consumer awareness.