In this new ‘normal’, people are spending more time online, mostly as a means of communication, work and also shopping.
The Malta Financial Services Authority (MFSA) told The Malta Independent on Sunday that it has noted an increase in scam emails and viruses.
“In February of 2019 we did not issue any warning, and in March and April we only issued two warnings. This year, between 13 March and 2 April, the MFSA has issued six warnings regarding scam emails,” a spokesperson for the authority said.
“MFSA issued four warnings in just the last two weeks of March, which under normal circumstances would be the number of warnings issued over a two-month period. If the start of April is anything to go by, this trend will not be changing any time soon,” the MFSA said.
The dependency of technology has spiked during the past few weeks, and so has the use of technology for malicious purposes with the aim of misappropriating funds and obtaining personal information.
“Such scammers are taking advantage of the scenario. They are taking advantage of people who are more vulnerable and are now becoming more reliant on technology due to the mandatory social distancing we all have to follow.”
MFSA has noted that such scammers are currently riding the COVID-19 banner, which may include supposed investments in developing cures, requests for donations and also medical and health insurance policies in relation to COVID-19. “Those who are not ‘technology savvy’ are at risk of falling for such scams and viruses and they could also unwittingly share these scams with others.”
The MFSA is reaching out to consumers of financial services through means of its website, social media platform and also through TV and radio programmes to share tips on how to recognise a scam. It is important to look out for the following:
A promise that you will benefit from a sum of money easily
A request for a personal or account information; trustworthy firms would not seek such personal information without going through standard security process first
A sense of urgency to make a very quick decision as most scammers want you to feel that you must make a quick decision or else lose out on a great deal
An unexpected call; if contacted by someone who is not known to you, double check how your number was obtained
If consumers have any doubts, they are to reach out to the MFSA by either calling on Freephone 8007 4924 or by sending an email to [email protected]
The MFSA encourages the public to get in touch if they receive such scams or viruses. “We are grateful when the public collaborates and provides us with information and emails they receive, as this helps us to take the necessary actions.”
Blanket exclusion for COVID-19 claims on medical insurance is unacceptable
The MFSA has also been informed that certain insurances have changed their conditions mid-term.
“We have had individuals informing us that their medical insurance would have issued blanket exclusion regards COVID-19 claims,” said the spokesperson. “This is not acceptable at all, and their treatment should be covered if it falls within the limits of their current insurance.”
MFSA has also received a number of requests regarding travel insurance, as most holiday bookings are now cancelled. “We have received a number of calls on how individuals should be refunded or receive compensation due to a cancellation, and it is very important that the client must first go to the travel agent they booked the holiday through,” the spokesperson explained. The travel agent is obliged to refund or rebook the client’s holiday.
Other information you may find helpful can be accessed here : https://www.mfsa.mt/wp-content/uploads/2020/03/COVID-19-Cybersecurity-Communication-for-Consumers.pdf and here : https://www.mfsa.mt/wp-content/uploads/2020/03/IMPORTANT-INFORMATION-REGARDING-COVID-19.pdf In the latter link, information about scams can be found on the second and last page of the document.
Consumers of financial services should always check that they are dealing with a regulated entity before buying financial services or products. This can be done by checking on the Financial Services Register on the MFSA’s website, which can be accessed here : https://www.mfsa.mt/financial-services-register/ The Financial Services Register is a public record listing entities licensed and regulated by the Authority.