Three UK provides advice to consumers of contract fraud amid new phone launches

Three UK provides advice to consumers of contract fraud amid new phone launches

Press release 1st October 2024 Devices

Three is urging consumers to be vigilant about fraudsters posing as network operators over the phone and offering deals that seem too good to be true. Fraudsters are targeting consumers looking to upgrade their phones or purchase new devices. Three is therefore highlighting the risks and how to take necessary precautions.

To protect against this, Three is advising consumers to never give out personal details or their One-Time Passcode (OTP), Three will never ask this. Furthermore they should be aware that if an offer seems too good to be true, it probably is, so always verify the deal through official channels. If a consumer thinks they've been the victim of the scam, they should inform their bank about the transaction and report the crime to Action Fraud - they can cancel the fake account through the money back policy on the return of the phone.

Contract fraud typically unfolds with fraudsters posing as Three representatives offering fake phone deals, using victims' details to take out real contracts. They send fake notifications and, when the wrong phone arrives, ask the victim to return it to a fake address. The customer later discovers they've been scammed, with no phone or deal.

To protect consumers from falling victim to scams of this nature, Three is sharing its top warning signs to stay alert for. If at any point a consumer is suspicious, they should halt the process before it's too late:

• The quality of the call may be poor
• If you make an upfront payment, it may show on your bank statement as an online payment and not a telephone purchase. The company name may be different
• It's unlikely that a genuine company would contact a customer to let them know that they received the wrong phone
• No company would ask you to send the phone back at your own expense. If it's a legitimate error, a prepaid return envelope would be sent and it would never be a residential address
• Three will never contact you and ask for your One-Time Passcode (OTP). Anyone asking is a fraudster. The only time we will ask for your OTP is when you contact Three directly
• If an offer seems too good to be true, it probably is. Verify the deal through official channels
• Three encloses information in the delivery that informs customers to only return your device to our verified returns partner
• Never share personal or financial information with unverified sources. Use secure methods to communicate sensitive details

Mark Fitzgerald, Director of Finance & Fraud said, "We're seeing an increase in customers falling victim to new forms of scams. Fraudsters are becoming increasingly sophisticated and its crucial our customers are aware of the red flags so they can be on the lookout for some of the key signs. We urge our customers to remain vigilant and always double check offers - if they seem too good to be true, they usually are."

If consumers have been a victim of contract fraud Three advises that they:

• Return any device to the contact details in the box, not from details from a call or message.
• Never give back to the delivery driver unless you have arranged the collection via Three directly
• Use only verified websites and official contact centres

For more detailed information on how to protect against fraud, visit https://www.three.co.uk/blog/mobile-phone-contract-fraud

Notes to editors

See below full details of the contract fraud scam:

1. Fraudsters call a customer posing as representatives of Three, offering deals on popular or newly launched phones to lure the victim in
2. Believing they've secured the deal, the customer may even make an upfront payment.
3. Instead of ordering the phone promised, the scammer uses the customer's information to take out a contract with a real mobile provider, like Three
4. The fraudster receives the real notifications from Three, who then sends their own fake messages to the customer, sometimes using WhatsApp
5. When the handset arrives, it won't be the phone the customer ordered
6. The scammer will call the customer and claim it was a mistake and asks the customer to return the incorrect phone to a fake address, promising the right phone will be sent
7. The fraudster assures the customer that postage costs will be credited on their first bill, but the address is fake, and the correct phone never arrives
8. The customer tries to follow up, but the scammer is unreachable
9. When the customer contacts the actual mobile provider, they discover the only record is of the fraudulent order, not their intended purchase
10. At this point, the customer realises they've been scammed and left without the phone or the deal they expected.