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How tech can help to outsmart scammers trying to steal people’s money, pensions and identities
The tactics would-be scammers use to try to get hold of people’s money and pension savings are increasingly sophisticated and can catch almost anyone out if they’re not careful.
That’s the subject of our fascinating podcast with scams expert Chris Thomason. What he talked about was mind blowing – and he really knows his stuff.
Chris has published two books, including Freaky Thinking (which I can highly recommend) on ways to encourage creative thinking, and he’s ranked fourth in the top 50 list of global thought leaders for design thinking (see www.thinkers360.com).
He’s also one of a team of specialists working behind the scenes at Lloyds Banking Group (LBG) designing systems to foil criminals’ attempts to access LBG customers’ money and Scottish Widows members’ pension savings. He ran a hugely interesting and educational scams’ session at our employer summit in London earlier this year.
It’s fair to say the audience was a bit shocked at what they heard about scammers’ tactics, with many saying the session prompted them to do more to keep their members informed so that they keep their money safe. Recording the podcast has changed my vigilance and sharing too – it’s eye-opening!
A good starting point is being careful on social media.
The ‘patient’ scammers
As Chris says, would-be scammers often target people by uncovering information on their social media profiles. Criminals patiently watch (they’re known as ‘patient scammers’) for people sharing their birthdays and milestones, home address and other personal details on Meta.
For pensions, age 55 is a trigger point
Someone sharing their 50th birthday party online, for example, risks a patient scammer waiting a few years until they turn 55 and are eligible to access their pension savings. It’s a clear example of a high-value fraud.
The scammer profiles their chosen ‘victim’ online, looking at whether their job is likely to give them a bigger pension, and then gets in touch to offer them a too-good-to-be-true way to grow those pension savings in something ‘better’. That could be crypto, land, or an unregulated investment scheme which could swallow up all their money and leave them penniless, while the scammer gets rich quick.
If any financial opportunity looks too good to be true, it probably is.
Identity theft
Another way scammers try to defraud people is by stealing their identities, with criminals using fake emails, phone calls, letters, counterfeit ID and bogus websites that look all too real so that they can try to get into their bank accounts to take money out.
They may even get a fake driving licence, which doesn’t actually cost that much to buy on the black market. The patient scammer has five years from you sharing your 50th birthday online to access your identity in time to claim your pension at 55.
It can all start with a text scam and a simple request to pay for unpaid postage, delivery, or a mobile phone offer which isn’t actually from your provider.
Anti-fraud tech
While there are practical steps people can take to protect themselves by being vigilant about what they share online and over the phone, they also benefit from Scottish Widows being part of Lloyds Banking Group with its six billion digital customer log-ins each year.
While we wouldn’t want to give too much away, tech can certainly help.
Chris and his team have designed an extra level of security for LBG app users, including Scottish Widows members, looking at around 400 different ways that your phone works, how you use it, whether you’re right or left-handed and the angle you usually hold it.
The app security learns the way you swipe and when it discovers something it doesn’t recognise, for example if someone else is using the app to log-in, the data can be enough to alert the anti-fraud team to act.
It’s why using an app to manage money and pensions is not only easier, but also more secure. Online transactions are more vulnerable to weak passwords and can be easier to steal from than good old-fashioned paper. The reason: it’s more effort for fraudsters to get hold of different bits of paper and they go after easier online opportunities. In-app transactions are helping to reset the security balance.
Where to get more guidance
Scammers get away with things when people drop their guard and there are resources to help people stay safe.
Action Fraud, the national fraud and cyber-crime reporting service.
The FCA highlights the latest scams.
Read more on our website.
Scottish Widows podcast: The inside story on scams and scammers
Listen to the full-length fascinating scams podcast on iTunes, Podbean and Spotify – and catch up with more news and insights on our Scottish Widows Workplace Pensions podcast channel.
Just scan the QR code.
