Watch out for rent scammers
Fraudsters are using the cost-of-living crisis to persuade people into a new scam on reclaiming direct debits for rent or council tax. We know it can be difficult in the current climate, but please don’t be pressured into giving over your bank details. If you’re unsure, please always double check and contact our Income team on 0300 777 2600 who’ll be able to help and advise.
We’ve been made aware of this scam, which is likely to have started on social media. Scammers are using sites like Facebook and Snapchat to promote opportunities to recover money paid by direct debit ‘in error’ to other parties such as social housing (rent) or local authorities (council tax).
Victims of this scam are asked to pass their bank details onto a ‘third party’ who make the claim to the bank that the money was paid in error. The bank is asked by the third party to cancel any direct debits and recover the money. The scammer will then take a fee, usually 50% and in some cases more, putting the victim into rent arrears.
Please be aware this kind of direct debit reclaim is illegal and despite being the victim of a scam, customers who take part could potentially face criminal prosecution as an accomplice to fraud and will also be asked to return the money in full. You’d also be in breach of your tenancy agreement and putting your home at risk.
Remember, don’t give your bank details or information on your online banking to any third parties.
If you’re concerned you’ve been impacted by this type of fraud, report this tothe Police Action Fraud Team on 0300 123 2040 immediately, with details of any fraudulent claim. For more information visit the Action Fraud website.