Council tax rebate warning as £150 cash back scheme starts this month
EXPERTS are warning residents to look out for scams as councils start sending out £150 cash payments.
Millions of households will get the money in April to help with rising energy bills.
Newham, Ashfield and Durham councils are among the local authorities which have warned people to beware of scammers trying to steal their cash via the rebate.
On its website the London borough said: "Residents are warned not to give out any valuable information to unsolicited callers claiming to be calling about the Council Tax rebate scheme."
It said it will never ask residents for bank details over the phone, or call to ask for any personal financial information.
Ashfield council said that it was aware that some residents have received phone calls and emails asking for bank details to pay the rebate.
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It said that it does not ask for bank details in this way.
Millions of households will get the rebate paid into their bank accounts automatically if they pay by direct debit.
But many will have to apply for the cash back if they are eligible and don't have a direct debit set up.
Councils have said they are contacting these residents where they don't already hold bank details and many are doing this via letters.
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These residents will have to give their bank details to their local council to get the payment.
How to do this will be outlined in the letter, but many councils have not yet set up this process.
For instance in Coventry the application will be made online via a system that will validate identity and bank details, but this has not opened yet.
Birmingham council has also no yet opened the application for non-direct debit billpayers.
Detective chief inspector Craig Mullish of City of London Police, which is responsible for tackling fraud crime, told The Sun: "Criminals will no doubt take advantage of the council tax rebate to target unsuspecting victims.
"If you’re contacted about your rebate, take a moment to stop and think as it could protect you and your money.
"Those eligible for the rebate will be contacted by their local council.
"If you receive any communication about your rebate that you’re unsure about, we would advise that you contact your local council to confirm that the communication you have received is genuine."
Scammers often take advantage of new schemes, but the way they operate is the same.
Adam French, consumer rights expert at Which?, said: “Scammers are always coming up with new ways to part people from their hard-earned cash and with many concerned about the rising cost of living, it wouldn't be a surprise if fraudsters tried using the council rebate to trick new victims."
The end goal is to get your personal financial details to steal your cash, but they often have sneaky ways of getting this from you.
Texts and emails can often look legitimate, and direct you to a website that looks similarly real.
They often then ask you to enter your details to get money back - in this case the £150 rebate.
But instead by sharing this information you are giving them access to your bank account and they could clear it out of cash.
Or the link can lead you to downloading malware to your phone or computer, which is then used to steal sensitive information with the same goal of getting your cash.
In the same way, they might ask you for this information over the phone.
They often use high pressure tactics, like saying it's the only change or you'll miss out.
But this is not the case, and you should never give out your personal or financial information to someone you don't know if they call out of the blue.
You won't miss out on the rebate. If you don't apply for the council tax rebate councils will have until September 31 to get it to you, for instance as a discount on your council tax bill.
Here's how to avoid falling for these types of scam:
- Ignore any unsolicited texts, emails and calls - if it's out of the blue, it's highly likely to be a scam.
- Watch out for spelling mistakes or strange wording in a message as these are often red flags.
- Check the details of the sender too - it may appear to be from a legitimate company but the email might be spurious, or the logo on the website it takes you might seem slightly off.
- Avoid clicking links - navigate separately to council websites so you know its the real one.
Adam at Which? said: “Consumers should be on high alert for scams and if in any doubt, should verify any unexpected emails, texts or phone calls directly with their local council before giving any personal information.
"If you’ve entered any bank details, contact your bank immediately to ensure the scammer cannot take any more money from your account and ask to be reimbursed.
"You can also report any attempted scam to Action Fraud.”
The consumer group has a free scam alert service where you can stay up to date with the latest tactics scammers are trying.
Similar types of scam appeared during the coronavirus pandemic, as new schemes like furlough and self-employed grants were launched.
Money back and refund scams are especially easy to fall for, because it's exciting to think you may be due a windfall out of the blue.
It's not just the promise of council tax rebates either.
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Refund scams usually encourage the recipient to click on a link and hand over their bank details in order to "claim a refund".
The message may purport to come from your phone or broadband provider, your bank or HMRC.
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