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Beware! A sophisticated car finance scam is currently targeting drivers across the Philippines, using personalised text messages that include your car's registration number and make. The Financial Conduct Authority (FCA) and consumer groups are issuing urgent warnings to be vigilant against these fraudulent schemes.

How the Scam Works: Fraudsters are sending out text messages claiming you're eligible for a refund on car finance due to potential mis-selling. These messages often appear legitimate, using details like your vehicle's registration number (e.g., AAA-1234) and make (e.g., Toyota Vios) to appear credible. The message will typically urge you to click a link or call a number to claim your refund.

Why are Drivers Targeted? Many Filipinos purchased their cars using car finance agreements. Following recent investigations and rulings, some drivers may be entitled to compensation if they were mis-sold their finance agreements. This has created a fertile ground for scammers looking to exploit vulnerable individuals.

The Danger: Clicking on the link or providing personal information (bank details, etc.) will likely lead to identity theft, financial loss, and potentially further scams. The fraudsters will attempt to steal your money or use your details to commit other crimes.

What to Do If You Receive a Suspicious Text:

• Do Not Click the Link: This is the most important thing. Never click on links in suspicious text messages.
• Do Not Provide Personal Information: Legitimate finance companies will never ask for your bank details or other sensitive information via text message.
• Report the Message: Report the scam to your mobile network provider by forwarding the message to 7726 (Phishing). You can also report it to the National Bureau of Investigation (NBI) Cybercrime Division.
• Verify with Your Finance Provider: If you're unsure, contact your car finance provider directly using their official contact details (found on your finance agreement or their website) to verify the legitimacy of the message.
• Be Extra Cautious: Be wary of unsolicited calls or messages offering refunds or compensation.

Understanding Car Finance Mis-selling: The potential for compensation arises from cases where car finance agreements were not explained clearly to consumers, or where hidden fees and charges were not disclosed. The FCA in the UK has already awarded billions of pounds in compensation to affected drivers. While this originated in the UK, similar practices may have occurred in the Philippines, and drivers are encouraged to investigate their finance agreements.

Protect Yourself: Stay informed about common scams and be cautious of any unexpected financial offers. Remember, if something seems too good to be true, it probably is. Always double-check the legitimacy of any communication before taking any action. Sharing this warning with friends and family can help protect others from falling victim to this scam.

Stay safe on the roads and protect your finances!