We think we know all their tricks, but the fraudsters still find a way

Despite the warnings, scams are on the rise, writes Rob Griffin. The techniques may be new; the human frailties exploited are as old as time

About 230,000 fraud offences were recorded during the year to March 2013 (Reuters)

We have all become a lot more knowing about fraud. With thousands of column inches devoted to painful experiences, hard-hitting campaigns run by pressure groups, and word of mouth on social media, people are realising how easily they can be conned.

But there are still plenty of victims. Around 230,000 fraud offences were recorded during the year to March 2013 – a 27 per cent increase on the previous year and 58 per cent more than in 2007-08.

How accurate these figures are remains to be seen because the way fraud is logged has changed. However, even if fraud is not rising as rapidly as appears, the number of instances is still far too high.

Action Fraud, the reporting centre, estimates that cases against individuals in the UK equate to a loss of £9.1bn per year, including those associated with areas such as mass marketing, identity theft and online ticketing.

Stephen Proffitt, Action Fraud's head, says technological advances – particularly the widespread use of the internet – have enabled conmen to perpetrate old-style crimes in a completely different way. “Some of these frauds have been around for 30 years but the internet has enabled them to target more people, more effectively. ”It's the delivery of the scam that has changed and the internet has facilitated a lot of these frauds.“

General computer fraud

While acknowledging that sophisticated computer fraud is on the up and scams are more elaborate, Graham Cluley, an independent computer security analyst, insists that the tried and trusted techniques of exploiting human weaknesses are still common. “It's easy for people to make a mistake, click on a fraudulent link or take a dangerous action because they're in a rush or aren't aware of the dangers,” he says. “We'll still be seeing attacks that dupe the vulnerable, distracted or incautious for many years to come.”

For example, malware software can give remote hackers access to your files, as well as letting them see what you type. These so-called spying Trojans are often installed by exploiting vulnerabilities in software such as Java.

Mr Cluley says anyone who doesn't keep their security software updated, or chooses to use a weak password, will be exposing themselves to a much greater risk. “The more sophisticated malware can perform MITM [man in the middle] attacks such as intercepting your access to your online banking website and sending fraudulent commands to the site, like moving money, without your knowledge.”

You could also be at risk from “drive-by downloads”, even if you are very careful where you go on the internet, as fraudsters look to exploit weaknesses in your internet browser, says Orla Cox, security operations manager at Symantec.

One of the most recent trends is ransomware, where a computer gets infected with a malicious piece of code that locks the screen and displays a message, supposedly from local law enforcement, demanding you pay a fine for having browsed illegal content. “The messages are quite stern, and as they have a law enforcement logo, people take them seriously and pay the fine – but it won't unlock their machines,” she says. “This scam has been successful and is enabling gangs to make millions of pounds every year.”

She adds: “It's actually relatively easy to recover machines from these attacks, so we'd encourage people not to be tricked into paying money but just contact someone who can help clean their machines.”

Social media fraud

Millions of people use social networking sites, so scammers will always look for an opening. Some, for example, build replica sites with the aim of stealing your log-in details. Others encourage you to download software that they claim will let you know who's viewing your profile. This is nonsense; their only purpose is to enable your profile to be covered in adverts – slowing down your computer.

You also need to be aware of fake profiles. For example, fraudsters pose as agents to persuade youngsters that they could have glittering modelling careers. Victims will end up paying hundreds of pounds for portfolio photographs that are useless.

Romance fraud

Thousands of people join specialist websites to help them find true love. However, there are instances where someone from overseas takes an interest and develops a rapport with the victim. Once trust has been gained, the fraudster provides a sob story and asks for money.

It will sound plausible. For example, they may claim to want to visit but can't afford the travel costs. The reality is that they are members of a criminal gang.

Courier fraud

Criminals posing as police officers ring people at home to tell them there has been a fraud linked to their account and to contact their bank for confirmation – but they don't put their receiver down so the connection is never broken. “The victim then dials the number on the back of their bank card without listening to see if there is a dial tone,” explains Mr Proffitt. “They will still be connected to the fraudster – to whom they will end up giving all their details.”

Identity fraud

This is when your personal details are stolen and then used by the fraudster to obtain credit cards, order various goods, or take out mobile phone contracts. An alarming 8.8 per cent of people have been a victim of ID fraud in the past 12 months, losing an average of £1,203 each, with over a quarter having experienced it at some point in their lives, says Action Fraud.

Other old favourites

Advance fee frauds These involve you being asked to help transfer money out of another country in exchange for a percentage cut. You will be asked to pay administration fees upfront but the money never materialises.

Boiler room scams These are run by bogus stockbrokers who cold-call people and pressure them into buying shares that turn out to be worthless.

Phishing You receive an email purporting to be from your bank, asking you to confirm passwords and personal details. The information is then used to access your account and separate you from your savings.

“Work at home” scams These sell the dream of making a living from the comfort of your armchair, but demand money upfront to cover the cost of materials. No work comes your way.

Investment scams The opportunity will sound enticing: earn bumper returns from investing in valuable commodities or gemstones in a Swiss bank vault. You'll never get to see your investment because it won't exist.

Fraud-recovery fraud There's a chance of a secondary scam when fraud victims are contacted and told the money they've lost can be recovered. Generally the fraudster poses as a legitimate organisation, claiming they can track down the fraudster and get your money back. If you respond, they will levy various fees – and you won't be any nearer seeing your cash.

The best advice for people is to shred statements and bills, says Mr Proffitt, as well as avoid logging on to their bank account at free wi-fi hotspots as they will have no idea who else may be on the network. “If they do become a victim ... report it to Action Fraud as this will help us form a picture of what's happening and begin to tackle it.

Useful links

Get safe online, getsafeonline.org

Action Fraud, actionfraud.police.uk

What to do

- Ensure your anti-virus software is up do date

- Be very suspicious of unsolicited emails

- Think before you trust a link or open attachments

- Use stronger passwords – and never use the same one for different websites

- Shred any receipts with your card details on them

- Sign-up to Verified by Visa or MasterCard Secure Code for added protection