Motorists are being targeted by sophisticated text messages which attempt to exploit drivers waiting for compensation from the car finance scandal.
The fraudulent messages, which include genuine vehicle registration numbers and car makes, are becoming more common as motorists anticipate a compensation update.
A recent scam message sent to one driver contained their Porsche's registration details and falsely claimed that they could receive £16,000.
It stated: "FUNDS ALLOCATED: PORSCHE - [REGISTRATION NUMBER]. Please complete the last stage [bit.ly link] to see what you are owed. You could get up to £16k."
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|Experts are calling on drivers to report any fraudulent messages which could attempt to scam them
The recipient identified and reported the fraud immediately since they had never used vehicle finance.
Deceptive messages like these are circulating whilst motorists await potential payouts from the Financial Conduct Authority.
The investigation looks into whether dealerships properly disclosed commission arrangements when selling car finance agreements.
The FCA revealed that numerous motor finance companies breached regulations by withholding crucial information about commission payments from customers purchasing vehicles.
REUTERS | The FCA will consult on a potential redress scheme for the car finance scandal
Dealers would make use of discretionary commission arrangements to increase interest rates and boost their earnings, despite being outlawed in 2021.
Consumer law specialist Lisa Webb from Which? described the trend as "really worrying" and revealed how criminals acquire personal information.
She said: "Scammers have multiple ways of obtaining details, including through data breaches or convincing people to enter information into scam websites.
"Personal data is an incredibly valuable commodity and can be illegally traded between fraudsters with relative ease.
"Consumers should always be cautious when entering any details online and ensure their online accounts have strong, unique passwords."
According to the regulator's estimates, compensation payments could commence next year following a consultation scheduled for early October.
The total compensation bill is projected to range between £9billion and £18billion, with individual customers potentially receiving approximately £950 per agreement.
The FCA has advised those who have already submitted claims to wait for official communication and cautioned against engaging claims management firms or solicitors, who typically retain up to 30 per cent of any settlement.
GETTY | The car finance scandal could be worth up to £18billion
Webb recommended that anyone receiving unexpected car finance texts should "treat it with suspicion and don't click on any links," suggesting instead that recipients verify messages by contacting companies through official channels listed on their websites.
Motorists face a dual threat: losing money to criminals impersonating official compensation schemes and surrendering substantial portions of legitimate payouts to claims management companies.
"Consumers should be careful about signing up to any claims management companies offering to recover compensation for you as they will take a cut for something that you can do for free," Webb noted.
Experts advise motorists to await official FCA communications rather than responding to unsolicited messages or engaging third-party firms, as the regulator will contact eligible customers directly when the compensation scheme launches.