Police are warning people in the North West to be wary of a new Universal Credit scam phishing for personal details.
The scam sees a fraudster pretending to offer people low cost government loans aiming to help those applying for Universal Credit.
Universal Credit is a payment to help with your living costs. It’s paid monthly and eligible for those on a low income or out of work.
Introduced in 2013, the social security payment replaced Housing Benefits, income-related Employment and Support Allowance (ESA), income-based Jobseeker's Allowance (JSA), Child Tax Credit, Working Tax Credit and Income Support.
However, the latest scam, said to 'prevalent' in the North West, has forced the Trading Standards to urge people 'never give personal or financial information to anyone you do not know.'
According to the Manchester Evening News , a post shared by a number of police Twitter accounts says: "Trading Standards have been made aware of a scam being operated across the UK, and appears to be particularly prevalent in the North West of England."
It adds: "The scam is targeted at anyone of working age. Never give personal or financial information to anyone you do not know".
What is the scam?
Fraudsters are targeting people of working age and claim that they're able to offer them a low cost government loan.
The scammer will then use their victim's personal details to apply for Universal Credit, then request a substantial advance payment, of which they'll take a cut for themselves.
The result is that the victim's current benefits will be stopped, and replaced by Universal Credit.
The victim will then be required to pay back the so called loan in full from future Universal Credit payments.
Personal information will also be compromised and the scammers will have access to their benefit account and banking information.
Ten golden rules to prevent fraud
1. Be suspicious of all ‘too good to be true’ offers and deals.
2. Don’t agree to offers or deals immediately. Insist on time to get independent or legal advice before making a decision.
3. Don’t hand over money or sign anything until you’ve checked someone’s credentials and their company’s.
4. Never send money to anyone you don’t know or trust, whether in the UK or abroad, or use methods of payment you’re not comfortable with.
5. Never give banking or personal details to anyone you don’t know or trust.
6. Always log on to a website directly rather than clicking on links in an email.
7. Don’t just rely on glowing testimonials. Find solid, independent evidence of a company’s success.
8. Always get independent or legal advice if an offer involves money, time or commitment.
9. If you spot a scam or have been scammed, report it and get help. Contact Action Fraud on 0300 123 2040.
10. Don’t be embarrassed about reporting a scam. Because the scammers are cunning and clever there’s no shame in being deceived. By reporting it, you'll make it more difficult for them to deceive others.
