Police have issued a warning with people having fallen foul of a universal credit loans scam.
The Lanarkshire Police Division say victims have reported being offered the loans in public - by people impersonating Department of Work and Pensions staff, on the phone, and over social media.
One victim was introduced to the scam by a friend on a social media network, police say.
The friend helped them receive the ‘free grant’ of over £1,000, only to later be asked to transfer £500 to the fraudster’s account as a ‘finder’s fee’.
The victim only realised they had fallen victim to a scam after they received a letter from DWP requesting repayments for the loan.
Officers are warning people watch out for the following signs of the scam:
1. The victim is contacted by a fraudster offering them a ‘free’ or ‘low cost’ Government loan or grant.
2. The fraudster requests personal and financial information from the target and uses these details to apply for Universal Credit in the victim’s name, usually without informing the victim about it.
3. The Department for Work & Pensions (DWP) approves the eligible claim and transfers money to the victim’s account.
4. The fraudster then requests that the victim transfer them a significant portion of the money as a ‘finder’s fee’.
5. The victim receives a letter from DWP about their Universal Credit application and realises that they have been duped. The victim is then left to repay the total amount initially borrowed.
Meanwhile, the police division have issued advice on how to protect yourself from fraudsters:
• Never share your personal or financial information with someone you don’t know and trust, especially if it’s in response to an offer of “free money” or a “free grant”.
• DWP will never approach you in the street or ask for your personal/financial details over social media.
• If you have concerns about your benefits, you should visit www.gov.uk/contact-jobcentre-plus
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