FRAUDSTERS are using the details of genuine car leasing brokers to set up clone firms to deceive unsuspecting consumers as part of a new finance scam.
Scammers are setting up fake email and social media accounts under the names of genuine leasing brokers by using the firm name, the FCA ‘firm reference number’ (FRN) and other identifiable information to try to convince customers that they work for an authorised broker.
Typically, fraudsters mix false details with correct details of the authorised firm in an attempt to illegally obtain monies from consumers under the pretence setting up a finance agreement or arranging a vehicle delivery.
The warnings come hot on the heels of a letter sent out by the Financial Conduct Authority to leasing brokers warning them that they are required to have adequate online security in place to protect themselves and customers from cyber attack.
Keith Hawes, Director of Nationwide Vehicle Contracts, said: “Clone scams are becoming increasingly common, so it is important that consumers are aware of these types of fraud.
“Fraudsters typically target unsuspecting consumers by calling out of the blue, but contact can also come by email, post, word-of-mouth or even at a seminar or exhibition. That’s why it’s important consumers know how to spot the warning signs.”
In the past week, UK regulator, the Financial Conduct Authority (FCA), has put out the details of several clone firms, as well as information of several unregulated companies, to warn customers of firms acting without authorisation or knowingly running finance scams.
How can you check you’re dealing with a genuine company? Nationwide Vehicle Contracts offer some top tips to help protect against being scammed online.
1. Check your dealing with a real, authorised company
If you are unsure about the legitimacy of a leasing provider, start by running some checks to ensure you’re dealing with a real company. By law, companies must register with certain agencies and credit organisations, so consider making enquiries with:
Financial Services Register – If a company offers financial services or associated products, then you should be able to check out their credentials on the Financial Services Register. The Financial Services Register holds details of every financial company who are registered and regulated by the FCA. You can search for a company by entering its name or postcode. If a financial company is not on the FCA register, avoid them.
Companies House – You can check if a company is registered by searching for a company’s details on the Companies House website. If you are dealing with a Limited Company, you’ll be able to see a substantial amount of information including the names of the directors, along with the companies they own and have previously owned.
It is also worth checking trade body sites like the Leasing Broker Federation, British Vehicle Rental and Leasing Association or the Finance and Leasing Association to see if the company is a registered member.
While not every leasing broker has to be a member, if they are, you know you’re dealing with a company that adheres to the highest standards of professionalism and fairness.
- Treat all unexpected calls, emails and text messages with caution. Don’t assume they’re genuine, even if the person seems to know some basic information about you.
- Always double-check the URL and contact details of a firm to check it’s not a ‘clone firm’ pretending to be a real firm.
- Don’t follow phone numbers or links in emails. Check the company’s website for a phone number – preferably a landline – or check contact details on the FCA register to ensure you call a genuine phone number for the business.
- Call the company and ask to speak to the contact you’ve been dealing with. If the employee of the company in question answers the call, you can have some reassurance that you are dealing with a “real” company.
3. Look out for warning signs
If you are suspicious about a business, then it’s always best to err on the side of caution. Scams are becoming increasingly sophisticated, so if something sounds too good to be true, it probably is. Hugely reduced rates or interest rates than appear better than anywhere else rarely come without strings attached and should start warning bells ringing.
Other warning signs that may signal a scam include:
- someone you don’t know contacting you unexpectedly
- being asked to transfer money quickly in order to take advantage of a ‘special bonus’ or ‘discount’
- being asked to pay in an unusual way – for example, through a transfer service like MoneyGram or Western Union
- being asked to give away personal information like passwords or PINs
- you haven’t had written confirmation of what’s been agreed
4. Report unauthorised or clone firms
Finally, if you think you have been approached by an unauthorised or a clone firm (a firm you suspect is not legitimate) contact the FCA Consumer Helpline on 0800 111 6768.
Hawes said: “Ultimately, you should feel 100% comfortable before entering into an agreement with a leasing provider. If something doesn’t feel right, trust your instinct and run additional checks.
“If you use an unauthorised firm, you won’t have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS), so you’re unlikely to get your money back if things go wrong
