Stop the Scammers! Avoiding mobile phone fraud

This article continues Loans 2 Go’s mini series – Stop the Scammers! Our aim is to provide helpful information about some of the risks brought by the increasing use of technology, and how you can be on your guard against them.

You can see other Stop the Scammers! articles on Loans 2 Go’s News page here, and can also find more information about frauds and scams on our dedicated Recognising Frauds and Scams page.

In this article we look at some of the ways that your mobile phone could be used for fraud, and what to do to prevent this.

What kind of fraud can a mobile phone be used for?

Unfortunately, if your phone is stolen it is quite likely that the motive is not the device itself, but to try to access any finance apps and information on your phone in order to steal money.

How does mobile phone fraud happen?

It is all too easy to be careless with your phone, for example keeping it in a back pocket, leaving it on a table in a pub, or walking along with it in your hand. It can take mere seconds for someone to make the most of that opportunity.

It becomes much more serious if the thief has also managed to get hold of your PIN. For example, if you use it to unlock your phone on public transport, at a bar, or in a checkout queue, it could be quite easy for someone to see the number you type in. 

And if someone has not only your phone but also your PIN number, they will have access to everything on your phone, including any apps with an automatic sign in, and also your emails, social media and notes.

What should you do if you lose your mobile phone?

So, if you lose your phone, you must act quickly. If you have a “Find My Phone” feature on your phone which is linked to another device, try that first just in case you have misplaced it somewhere nearby. But if this is not readily available or doesn’t work, don’t waste time: better to be safe than sorry. 

There are three steps you should take:

• Contact your network provider

Report the loss to your network provider who will be able to cancel your phone’s SIM so that at least it can’t be used. It’s important to do this quickly because most network providers will charge you for any use of the phone between you losing it and reporting it missing. There is often a limit of £100 on this if you report it within 24 hours, but the sooner the better. And if your phone does turn up, your network provider should be able to reactivate it for you.

• Report it to the police and your insurance company

If you think your phone has been stolen, you should report this to the police in person or by calling 101. You may need to give them your phone’s IMEI number. If you don’t know this, your network provider will be able to give it to you. But why not make a note of it now, in a separate place? You can find it either through your phone settings or by texting #06# to reveal the number.

When you report your phone stolen, you will be given a crime reference number which you may then need to give to your insurance provider if you have mobile phone insurance. You need to report the loss to your insurer as soon as possible so they can sort out a replacement phone for you.

• Change your passwords

It’s also important to change passwords immediately for all websites relating to finances. Even if you do most of your banking from apps on your phone, you will usually be able to logon to either the app or the main website on another device and change your password there. If in doubt, contact your bank for help.

What can you do if you’ve been a victim of mobile phone fraud?

Mobile phone fraud is a relatively new crime, and if you do find that you have been a victim of it, it can unfortunately sometimes be difficult to get your money back. 

According to The Payment Services Regulations, unless you have been “grossly negligent” – and the bank can prove that you are at fault – then they should refund your money. But banks can be inconsistent and you may have to fight your corner.

So, the best thing is to try to prevent anything happening in the first place. Let’s take a look at how to do this.

How to protect yourself from mobile phone fraud

The two main ways to protect yourself from mobile phone fraud are to keep it physically safe at all times and to keep the information that is on your phone secure. Here are five tips on each:

Five tips to keep your phone physically safe

• Be aware of where your phone is at all times, and never leave it unattended.
• When on the move, keep it out of sight in a secure inner pocket or a closed handbag. 
• Use the Find My Phone option to link your phone to another device, either yours or someone else’s.
• If your phone has the option to customise your lock screen, add a message with alternative contact details in case someone innocently finds your phone.
• Register your phone with the UK national property register Immobilise, as this could increase the chances of you getting your phone back. 

Five tips to keep your phone apps and information secure

• Be very careful when entering your phone PIN so that no-one else can see it.
• Use biometric data (eg facial recognition or fingerprint) either as well as or instead of a PIN wherever possible.
• Use different PIN numbers for unlocking your phone and opening banking apps.
• If possible, remove banking apps from your phone altogether and keep them on devices that do not leave the home.
• Don’t store passwords or PIN numbers on your phone where they could easily be found by someone who knows what they are looking for.

We hope that the information in this article helps you to be more aware of how mobile phone fraud happens, and the impact it could have.

Check back here with us soon for more helpful tips from Loans 2 Go.