GWCI WARNS OF CONTINUED SCAMS AS INTERNATIONAL FRAUDSTERS LEAVE THEIR MARK ON BRITISH BUSINESS Carrying out due diligence more important than before

After ￡1.86m of coronavirus-related fraud has been recorded since the virus first began, business risk and compliance experts GWCI has warned that more UK businesses could fall foul of scammers as they seek to buy PPE in bulk upon returning to work. 

With the lockdown still in place despite the recent Government communication in the UK, businesses are using the time away to stockpile on items such as face masks and hand sanitiser to ensure that as soon as the call to return back to work is issued, they can do so as safely as possible.

However, a recent BBC investigation revealed that criminals in West Africa have been setting up hundreds of bogus websites claiming to sell Covid-related items that help prevent the rate of transmission in the workplace such as masks and hand sanitiser.

Global Risk and Compliance Specialist GWCI is urging businesses to be vigilant when purchasing protective items online as the rise of fraudulent websites will inevitably rise – especially as businesses begin to return to work.

Heightened fraudulent activity from Coronavirus scammers has been rife since the beginning of the pandemic and GWCI has expressed further concerns that this may continue for the foreseeable future due to the forecasted economic crisis that is expected to result from the fallout of the coronavirus outbreak. 

Scientific experts have touted that there is a direct correlation between a struggling economy and a rise in fraud – predicting recessions often lead to increased financial pressure, this will inevitably give rise to a small majority who will look to capitalise on the vulnerable. 

According to professor Mark Button, the 1980 recession saw a 3 per cent fall in GDP which resulted in a 5.6 per cent increase in fraud related offences, the 1990 recession saw a dip of 1.7 per cent in GDP followed by a 9.9 increase in scams and the 2008 crash caused an increase in fraudulent crimes by 7.3 per cent. 

The Office of Budget Responsibility  has warned of a potential 35 percent drop to the UK’s GDP,  This is extremely concerning as it could lead to record breaking growth with fraudulent organisations targeting British businesses who are already vulnerable due to the current crisis.

Graham Welland the CEO of GWCI said  “Scammers have been increasingly leveraging the Coronavirus pandemic as a means of targeting businesses by setting up dubious websites claiming to sell vital equipment ranging from face masks to hand sanitisers. 

“New findings from TSB Bank have revealed that 42% of Brits have experienced the scam tactic known as phishing during the Covid-19 outbreak. This level of fraudulent activity has been replicated in the corporate world and given the uncertain times facing the economy for the foreseeable future we urge businesses to be extra vigilant. 

“Businesses need to be aware of the dangers that they face as it’s likely that fraudulent activity could spike across the globe over the forthcoming months – especially as PPE and sanitation products increasingly become essential items in the workplace – as dubious websites such as those identified by the BBC will continue popping up and claim to be completely legitimate. 

“Doing your due diligence before making a commercial arrangement is imperative. Whether you are forming a relationship with a new supplier or making a one-off purchase from a website, appropriately vetting those who you do business with could save a considerable amount in financial costs in both legal fees and lost revenue. 

“Dubious websites are only the tip of the iceberg when it comes to the bigger picture of fraudulent activity affecting businesses during this crisis. 

“With remote working becoming the new norm, criminals are seizing the opportunity to target employees who are isolated from their colleagues. Some typical tactics include sending emails with malicious attachments, exploiting vulnerabilities in your systems, and trying to get you to click links or visit malicious websites.

“Educating yourself as well as your staff members of the typical scams that they are likely to be faced with whilst working remotely will be vital in avoiding costly slip ups that could not come at a worse time.”