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National Trading Standards launches Businesses Against Scams online training tool

24 April 2020

MALICIOUS E-MAIL attachments, false Government grant phone calls and CEO impersonation scams are among a raft of scams undermining businesses as a result of the COVID-19 pandemic. The increasing risk has led National Trading Standards to launch Businesses Against Scams: a free online training tool to protect companies, employees and customers from the criminals.

With remote working and many businesses having to halt or otherwise diversify their trading practices, criminals are seizing the opportunity to target employees who are isolated from their colleagues. Scams include criminals impersonating Government officials or a senior member of the business in order to put pressure on employees to divulge sensitive information or make payments.

Criminals will also try and gain access to business devices and networks and everything stored on them. They can do this by sending e-mails with malicious attachments, exploiting vulnerabilities in company operating systems if they're not up-to-date and attempting to entice employees to click on e-mail links or visit malicious websites.

Once the criminals have access to devices and data, they may try to steal that data or extract money by demanding a ransom payment for its release.

At a time when businesses are already facing challenges posed by the Coronavirus pandemic, the proliferation of related scams is adding further strain on them. This includes scams directly targeting businesses – such as tax refund frauds – which can lead to significant financial losses.

Reputational damage

Scams targeting customers also undermine businesses, as criminals often impersonate businesses to defraud their customer base, causing reputational damage and potential loss of business. The emotional and mental impact on employees and business owners who have fallen victim to a scam can also be devastating and, very often, long-lasting.

The increased risk for businesses just now has led National Trading Standards to encourage more of them to join Businesses Against ScamsThe initiative provides free tools for organisations to help upskill and train their workforce by way of free online training modules that will help staff identify and prevent potential scams. Businesses can take the training and sign up at https://www.friendsagainstscams.org.uk/BAS.

Louise Baxter, head of the National Trading Standards scams team, said: “Criminals will use every opportunity they can to defraud innocent people. They will continue to exploit every angle of this national crisis. We want businesses to be prepared. We’ve launched Businesses Against Scams as a free tool for organisations to help them protect their business, their staff and their customers.”

Lord Toby Harris, the chair of National Trading Standards, added: “COVID-19 has presented new opportunities for businesses to be exploited by criminals. Criminals are expert at impersonating people, businesses and the police. They spend hours researching a business for their scams, hoping an employee might let their guard down just for a moment. Business must be vigilant at all times. Never rush, act cautiously and always challenge. The Businesses Against Scams initiative empowers businesses and their employees to take a stand against scams by equipping them with the advice and knowledge on how to identify and prevent a scam.”

Four common scams

Government grant/tax refund scams

A business is contacted by phone, e-mail or post by Government imposters suggesting the business might qualify for a special COVID-19 Government grant or a tax refund. Variations on the scheme involve contacts through text messages, social media posts and messages. Businesses should be cautious about unexpected urgent communications offering financial assistance. Check that the information is genuine by using official Government websites.

Invoice/mandate scams

A business may be contacted out of the blue by someone claiming to be from a regular supplier. They state that their bank account details have changed and will ask the person to change the payment details. Never rush a payment. Use contact details that have been used before to check that it's genuine.

CEO impersonation scams

A sophisticated scam that plays on the authority of company directors and senior managers. An employee receives a phone call or an e-mail from someone claiming to be a senior member of staff. They ask for an urgent payment to a new account and instil a sense of panic. Scammers may even hack a staff e-mail account or use spoofing software to appear genuine. Companies should be cautious about unexpected urgent requests for payment and always check the request in person if possible.

Tech support scams

With more people working remotely and IT systems under pressure, criminals may impersonate well-known companies and offer to repair devices. Criminals are trying to gain computer access or gain control of passwords and login details. Once they have access, criminals can search the hard drive for valuable information. Employees should always be suspicious of cold callers. Genuine companies would never call out of the blue and ask for financial information.

*If a business believes that it has been the victim of a scam then it must contact the bank immediately and report any suspicious activity to Action Fraud https://www.actionfraud.police.uk or call 0300 123 2040

**Businesses Against Scams is a new element of the successful Friends Against Scams initiative run by National Trading Standards to provide free online training to protect and prevent people from becoming victims of scams. For more information visit www.friendsagainstscams.org.uk/