Don't fall for the Grand National scam
Online fraud experts are warning rookie gamblers of a Grand National Scam threat ahead of the big race on Saturday.
In the run up to the nation's favourite race, online advice site, knowthenet.org.uk is warning of fake gambling sites designed to mimic those of well-known betting shops.
By placing a bet on a fake website, gamblers have no chance of their bet paying out, even if their horse comes in. But gamblers won't just lose their original stake, they could also be placing themselves at risk of ongoing credit card fraud.
Peter Wood, security expert at knowthenet.org.uk, says online betting sites aren't used by the majority of the population until a popular race, such as the Grand National, takes place.
"These fake sites are operating in the belief that most of these people won't have undertaken much research before placing a bet. They make much of their money on their ability to look like legitimate and well-known betting sites, when in fact they are fake and will not pay out if your horse does come in. In the worst case scenarios, you could become a victim of identity theft," he adds.
Mass marketing scams
According to Consumer Direct, three million UK adults fall victim to mass marketing scams every year - losing on average £850.
To help consumers learn how to spot fake websites and scam emails Know the net has created an online Threat Test. The test can also show if you're susceptible to social-networking and malware (software that can take over your computer) scams.
How to spot a fake website (gambling or retail):
- Check the website's credentials – Google the site you plan to use. Legitimate and safe sites will come up first.
- Search for alternative contact details like their postal address and phone number. If in doubt give them a call.
- Before entering any banking information, look for the padlock symbol in the lower toolbar, towards the bottom of the screen.
- Many fake sites mimic legitimate ones- check the URL (everything that appears in the web address window of your browser) and if you are suspicious or there are any spelling mistakes stay well clear.
- If you are shopping at a retail site for the first time pay with a credit card rather than debit card as there is more buyer protection (on purchases between £100 and £30,000).
If you're worried about being scammed, read our guide to beating online fraud.
Issued by a bank as part of a current account and, in a nutshell, serves as electronic cash. Unlike a credit or charge card, where you get an interest-free period before you have to settle the bill, the funds spent on a debit card are withdrawn immediately from your current account. Unless you’ve arranged an overdraft, if you don’t have the cash in the account, you can’t spend it.
Credit card fraud
Credit cardholders can be defrauded in a number of ways: “skimming”, when someone copies the data from your card’s magnetic strip onto another card without your knowledge (in shops, bars and restaurants); stolen or lost cards being used by thieves; and postal interceptions where the card the bank sends you never gets delivered. Another way is through identity fraud, where criminals get hold of a utility bill, a bank statement or some other form of personal information so that they can take out credit cards, loans or mortgages in your name.
Used by the holder to buy goods and services, credit cards also have a monthly or annual spending limit, which may be raised or lowered depending on the creditworthiness of the cardholder. But unlike charge cards, borrowers aren’t forced to pay the balance off in full every month and, as long as they make a stated minimum payment, can carry a balance from one month to the next, generating compound interest. As the issuing company is effectively giving you a short-term loan, most credit cards have variable and relatively high interest rates. Allowing the interest to compound for too long may result in dire financial straits.