Businesses warned over scams as fraudsters aim to take advantage of crisis

In recent months, businesses across the UK have been targeted by false government grant phone calls, malicious email attachments and CEO impersonation scams.

Action Fraud has also reported that more than £800,000 has been lost to scams since the Covid-19 outbreak arrived.

Council bosses are now urging firms to sign up to free online training from national Trading Standards scheme ‘Businesses Against Scams’ to help protect their organisations, employees and customers.

Scammers will use a variety of different methods to defraud businesses, the said.

Due to the recent increase in staff working from home, criminals are looking to profit from the isolation experienced by employees by impersonating government agencies and pressuring staff to make payments or give out sensitive information.

Fraudsters will also falsely claim to be from a government body, such as a local authority, to commit mandate fraud.

One case included an email claiming to be from a Durham County Council supplier requesting a change in bank details for payment.

A payment of £8,000 was subsequently made to the new account before it was established that the email was fraudulent.

After enquiries revealed the money was paid into a false account, the supplier’s details were corrected and no further payments were issued to the fraudsters.

There have also been cases where scammers have claimed to be calling from the council’s Community Hub or other local authority services.

Additionally, the introduction of business support grants offered by the Government has been exploited by criminals who have subsequently contacted businesses to offer support in the application process by either requesting a fee for this service or asking for sensitive information which may then be used to extort money.

Businesses Against Scams have also warned of CEO fraud which plays on the authority of directors and senior managers.

For example, an organisation the council works in partnership with was scammed into paying £22,000 after an email thread between the organisation’s CEO and finance officer was hacked.

An invoice was then sent to finance requesting urgent payment. As the finance officer thought the email was from their CEO, they processed the payment.

Durham County Council’s cabinet member for Neighbourhoods and Local Partnerships, Coun Brian Stephens, has urged businesses to stay alert.

“These examples show how easy it is to fall victim to sophisticated scams and the devastating financial impact they can have on businesses,” he said.

“The coronavirus pandemic has created uncertainty for a lot of people and businesses which, unfortunately, scammers are wrongly using as an opportunity to fraudulently gain money or sensitive information.

“We would encourage businesses to check the authenticity of a call or email before responding.

“If you are in any doubt, end the phone call and use a search engine to find a correct contact number for the organisation to check if the communication was genuine.

“Concerns about a potential fraud and scam can also be reported to us.”

Firms across County Durham can sign up to Businesses Against Scams here: www.friendsagainstcams.org.uk/BAS

Further e-learning about more general scams, including those which have emerged in response to the coronavirus pandemic, is also available at www.friendsagainstscams.org.uk/elearning/durham

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