What are the common fraud myths people believe?

Top fraud myths to keep you informed

Our friends at Action Fraud received feedback from local police that indicates there are common fraud myths people tend to believe. These myths can leave them vulnerable to becoming a victim of fraud or cybercrime. Here we share these top fraud myths to keep you informed and reduce your chances of becoming a victim.

The PIN safety myth

“Bank staff might ask for my PIN number or online banking password to check who I am when they call.”

Truth: Bank staff will never ask for your PIN number or online banking password over the phone. They would also never ask you to tap a PIN number into your telephone keypad.

The spoofing myth

“When someone phones me, the caller number displayed must be genuine.”

Truth: Numbers can easily be ‘spoofed’ to mislead the person receiving the call. Never trust the number on your telephone’s display. Text messages can also be spoofed to look like they are coming from elsewhere – even if they appear in the same chain as previous messages.

The money mules myth

“It’s ok to let people put money in my bank account even if I don’t know them or don’t understand why they are transferring me money.”

Truth: By letting someone else use your account, you could be laundering the proceeds of crime or assisting in other crimes which could then leave you vulnerable to prosecution.

The public Wi-Fi myth

“Public Wi-Fi is secure and safe enough to do my online banking, shopping and more.”

Truth: Any data sent using public Wi-Fi can be easily intercepted. If you are using a device on a public network, you put your personal information, digital identity, and money at risk. The risk is even greater if your devices are not protected by an effective security system.

The charity fraud myth

“It’s always safe to make charitable donations to street collectors or by charity mailing.”

Truth: Most collections are genuine but check before giving to make sure your money goes to registered charities.

The Intellectual Property fraud myth

“Downloading digital content illegally is harmless.”

Truth: This crime is not victimless and has serious repercussions. Downloading content illegally can result in money being used to fund serious organised crime. It also has an impact on the creative industries and the economy.

The insurance fraud myth

“Changing the details on my insurance policy or making an inflated insurance claim is not really fraud, everyone does it, I won’t get caught and Insurers can afford it anyway.”

Truth: Insurance fraud is a crime that is taken seriously by insurers and police. The cost affects members of the public, not just insurers. The chances of being caught are high and it can have a huge impact on people’s lives when innocent people can be injured or killed in deliberate collisions caused by fraudsters.

The Money Services Business myth

“Money Transfer Systems are always a safe way of making payments.”

Truth: This is only the case if you can verify the person you are sending money to. Never use these services to send money or payment to somebody you don’t know. Once the cash is collected, the recipient can’t be found and it will not be possible to refund your money.

The romance fraud myth

“I can trust people I meet on dating websites as they will have been vetted before being allowed to join.”

Truth: Always be cautious about people you meet online, especially if they start asking for money to help a family member, to visit you, pay medical bills or any other request that involves money. Never send money or give credit card/online account details to anyone you don’t know and trust.

The social engineering myth

“It doesn’t really matter what information I post on social media as only my friends can read it.”

Truth: By getting your privacy settings wrong or accepting people you don’t know as friends, you may be giving fraudsters valuable information about you and your habits. Personal details can be used to guess passwords, habits and vulnerabilities so you need to check your privacy settings regularly. All personal information is valuable and fraudsters are very good at filling in the missing information.

The passwords myth

“There’s nothing in my personal emails that anyone would care about.”

Truth: Hackers can use your email to gain access to all of your personal accounts. Make your passwords stronger by using three random words.

The legitimate websites myth

“If a company has a registered website then it must be legitimate.”

Truth: It takes minutes to set up a website in any name you want for a small cost which means fraudsters can set-up a website just as easily as anyone else.

What to do if you’ve been a victim of fraud

At Crimestoppers, we can’t take information from victims of crime due to our anonymity guarantee. However, if you know someone committing fraud, you can contact us with this information or call us on 0800 555 111.

If you’ve been a victim of fraud, you can report this online to Action Fraud or call them on 0300 123 2040.