03/25/2021 | Press release | Distributed by Public on 03/25/2021 03:55
Barclays data has revealed that scams targeting businesses increased by almost a third (31 per cent*) in January and February, when compared with the same period last year.
Impersonation scams were the most commonly used tactic by criminals to target businesses in 2020 (44 per cent), with figures more than doubling in the second half of the year when compared with the first half (62 per cent). Impersonation scams are when fraudsters pretend to be organisations or authorities in the hope that they'll trick their victims into sharing personal or banking information - or to even transfer money out of their account.
The bank is issuing a scams warning to all businesses, but particularly those in the property and construction sector, as the data reveals that small and medium enterprises (SMEs) in this sector made up almost a quarter of all business scams last year (24 per cent). On average, each scam cost property and construction SMEs a staggering £4,110.
Barclays has partnered with football legend and TV presenter Dion Dublin to raise awareness of the growing dangers of fraud and scams, and the sophisticated tactics criminals are using to defraud businesses. When he's not presenting on the TV, Dion's time is spent helping to run his electrical company, Scott Dublin, of which he is a partner.
Dion Dublin said: 'I've experienced fraudulent activity before, with criminals first trying to take £400 and then £1,600 out of my personal business account. Offenders know small business owners are time-poor and take advantage of busy schedules to see if they can get away with scamming people.
'My wife, who is my business partner, spotted the suspicious account activity labelled as tech services and got in touch with the bank right away. We're now in a routine of checking daily to ensure no one is trying to get hold of our money. Building a good defence against fraudsters requires solid organisation and communication, plus I like to think my football background means I'm able to spot a bad transfer when I see one!'
John Heaver, Barclays Head of Business Banking Fraud, said: 'Property and construction businesses often display their company details outside or near construction projects they're working on, making it easier for fraudsters to research and target their scam. SMEs should consider having checks in place to confirm the legitimacy of any new suppliers, or even unexpected changes to existing suppliers, during a job.
'It's incredibly important that business owners and their staff are aware of the different type of scams that can occur and remain vigilant at all times. The vast majority of scams could be prevented by taking simple steps such as double checking payment details with a source you know is genuine. I'd encourage SMEs to talk about preventing fraud with their staff, suppliers and clients, however if they are ever in doubt, they should contact their bank for more advice.'
Dion's checklist for SMEs to help build the foundations of scams prevention:
Last year, Barclays prevented hundreds of millions of pounds of fraud and scams, and the bank continues to ramp up its mission to educate their customers on the rising threat. Weekly cyber security awareness webinars are available for all UK businesses, and were attended by 1200 SMEs last year.
Customers should get in touch immediately with Barclays if they feel they have been the victim of a scam on 0800 3891 652.
To find out more about how you can protect your business from Fraud and Scams visit: https://www.barclays.co.uk/business-banking/manage/security/
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Notes to Editors
*Barclays data on reported scams is from January 2020 - February 2021.
Barclays regularly hosts cyber security awareness webinars for businesses. For more information and to sign-up, visit: http://barclaysbusinesswebinars.eventbrite.com
Barclays most recent social media fraud awareness campaign, which warned businesses of the most common scams to watch out for, targeted SMEs across the UK with a reach over 300,000.