Card payment methods like contactless and Apple Pay have overtaken cash as consumers’ preferred method of payment, proving the convenience and efficiency of electronic payments. But, as the digital world expands, so do the tactics of those looking to exploit it. In 2022, eCommerce fraud losses for merchants grew by 16% and the total cost is expected to exceed $48 billion globally in 2023. And for customers, authorised push payment (APP) fraud – where a victim is tricked into willingly authorising a payment to a scammer – totalled £485.2 million in the UK in 2022. While ensuring your business has the required card payment security measure is one of the best ways to protect you and your customers from fraud, prevention also means being clued up on how scammers are tricking people out of their hard-earned cash. To help keep online transactions safe, discover some of the most prevalent scams circulating today, according to digital payment solutions provider takepayments. 1. Crypto romance scams Romance scams have been around for a long time and typically involve a fraudster adopting a fictional or stolen identity to befriend and gain a victim’s trust online. They will build up a close relationship with the victim before manipulating or stealing money from them. Today, crypto romance (or CryptoRom) scams see fraudsters claiming that they’ve found a lucrative cryptocurrency investment opportunity but lack funds, urging their new ‘partner’ to invest on their behalf. Since cryptocurrency is untraceable, it’s near impossible to track the owner or identity of a crypto wallet, so fraudsters can trick victims out of their money without getting caught. In the UK, crypto scams increased by 72% in December 2022 and reported losses totalled over £329m. The signs: A fast-moving relationship – Some fraudsters can spend months building up a relationship to foster a sense of trust. However, not all will be patient and the biggest sign that someone may have ulterior motives is if the relationship is accelerating quickly. A refusal to meet in person – Scammers will reside all over the world and can target victims anyway. If they consistently rebuff efforts or give excuses to meet in person or via a video call, it could be a sign that they may not be who they claim to be. Constant talk of financial troubles – In many CryptoRom scams, finances or mentions of financial issues can be mentioned early on in the relationship. This could indicate that scammers are laying the foundations for taking money. Pressuring for crypto investments – The most obvious sign is if victims are asked directly for money or investment. How to try and avoid this scam: Background checks – Search on social media for profiles for evidence that the person is real; if the profile was made recently or lacks information, it could be a red flag that it doesn’t belong to a legitimate person. Take note of the language used – Given the rise in AI tools, many scammers use artificial intelligence to scam victims en masse. Unnatural wording and generic conversations without personal or unique qualities are signs that someone may be using AI to fuel a crypto romance scam. Never share financial details – No matter how genuine someone may seem, never share financial information or make investments on behalf of someone you’ve never met in person. 2. QR code scams Ordering at the table changed the dining experience during the Covid-19 pandemic, with restaurants across the country using QR codes and self-ordering technology to help reduce contact with customers. Despite this, over half (53%) of UK consumers have trouble spotting a malicious QR code. Scammers are placing fraudulent QR codes over legitimate ones to direct users to fake websites that encourage people to enter their payment information to send money to scammers. These scams are often carried out at restaurants and car parks that implement self-ordering or payment technology. The signs: Inconsistent branding on QR codes – If the branding on a QR code doesn’t match the branding of a business or appears amateurish, it can be a big red flag. Well-established companies typically maintain consistent branding across all platforms. Suspicious elements on the code – If some visible anomalies or elements seem out of place — like stickers placed on top or evident alterations in the pattern — it could indicate that the code has been tampered with. Legitimate QR codes should have a clean, unobstructed design without any unusual additions. Codes in unusual or random places – Think about the location and context of where a QR code is placed. It could be an unauthorised scam attempt if it randomly appears somewhere that doesn’t seem logical, like an obscure corner of a room or slapped on a public space without any explanation. Read QR codes from businesses will be strategically placed to help the user. How to try and avoid this scam: Check for Secure Socket Layer (SSL) certification – The website that a QR code directs a user to should always be SSL certified. You can spot a secure, SSL-certified site if the web address starts with “https://” and there is a padlock icon next to the URL. Look for two-factor authentication – Also known as 3D Secure Authentication (3DS), two-factor authentication is a key security feature when making online payments. Secure sites that use 3DS will have a Visa Secure, MasterCard SecureCode, or American Express SafeKey logo on them. 3. Football ticket scams Popular sporting events are often the target of ticket fraud scams. Lloyds Bank reported victims losing an average of £410 to ticket scammers in the Premier League 2022/23 season, with football ticket scams increasing by 68%. The Northumbria Police also issued a warning to Newcastle fans against buying counterfeit tickets for the Carabao Cup in February 2023. Nefarious ticket touts take advantage of the fact that official tickets for many sporting events sell out extremely quickly, with fans turning to third-party resale websites to secure tickets instead. Scammers then list counterfeit tickets for extortionate prices, with event-goers being unable to spot fraudulent tickets on non-authorised selling platforms or social media websites. The signs: Too-good-to-be-true deals – Scammers may offer last-minute ticket deals or VIP packages to make their offer seem more appealing to victims to lure them in. Websites without official affiliations – Over 90% of football ticket scams occur on Twitter, Facebook, or Instagram, so always be wary of social media platforms and unaffiliated resale sites. Sellers unwilling to meet in person – Ticket scammers can be based all over the world to pull off this scam, which means that they may be reluctant or refuse to meet in person to sell their ‘tickets’. How to try and avoid this scam: Official sources – The only way to be sure that tickets are legitimate is by purchasing from the official club website or accredited ticketing partners. This is often the team, venue, or organisation running the event. Never send money via bank transfer to unknown sources – Many scammers request ticket payment by bank or wire transfer, or through a peer-to-peer (P2P) app like PayPal. These methods are designed for sending money to people that you know, like family and friends. They are not intended to be used for eCommerce transactions and do not have protection in place to recover lost funds from fraud. Never share sensitive information – Unsecure payment gateways do not ask for four-digit card PINs or online banking information, including passwords. Never share these with anyone. Other prevalent scams: 4. Voice cloning AI scams 5. DVLA scams 6. “Say Yes” phone scams 7. LinkedIn fake job offer scams 8. Amazon scams 9. Holiday scams 10. Brushing scams
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