Households targeted by ‘Cost of Living Payment’ scam where scammers trick victims into sharing personal details to drain bank accounts
Households are being targeted in a new “Cost of Living Payment” scam, where scammers trick victims into sharing personal information to drain their bank accounts.
The government has sounded the alarm over the latest vicious ploy, with scammers taking advantage of the confusion surrounding a new subsidy to prey on victims.
The £900 grant will be paid out to eight million low-income families – with the first of three £301 installments hitting bank accounts between now and May 17.
Fake: Scammers take advantage of confusion over who qualifies for the new ‘Cost of Living Payment’ by targeting people via texts and emails
This cash boost is paid automatically by the Department for Work and Pensions (DWP). But scammers take advantage of eligibility confusion by targeting people via text and email. The messages supposedly coming from the DWP ask recipients for bank details to see if they can take advantage of the windfall — and to facilitate any payments.
Once this information is provided, the fraudsters can use it to spend money with their victim’s savings. A DWP spokesperson says, “Beware of scammers targeting people on the Cost of Living Payment grant. If you’re eligible, there’s no need to sign up or call us – payment is automatic. We never ask for personal information via text message or email.”
For full information on who is eligible for the payment – including those in receipt of pension credit, jobseeker allowance, income support and universal credit – and how it is paid, please visit the government’s website gov.uk/guidance/cost-of- living payment.
Helen Morrissey, of Hargreaves Lansdown, warns anyone who receives a text message not to respond or click on email attachments that may be included. She says, “Scammers are quick to take advantage of changing conditions and payments.”