Spot the con

Did you know that an estimated nine million people in the UK were caught out by financial scams last year [1]? According to Citizens Advice, scams are now more sophisticated and widespread than ever, with scammers preying on even the savviest individuals. Scams are continuously evolving to exploit uncertainty and financial pressures. Playing on emotions like fear, urgency or excitement, these scammers aim to catch you off guard. And while we all like to think we’d never fall for a scam, the truth is, even the sharpest amongst us can get caught out. So how can you stay one step ahead? Understanding how these scams work and recognising the red flags is a great way to stay informed. Whether it’s a too-good-to-be-true investment or a call from someone pretending to be from HMRC, take a moment to stop and think, to protect yourself and your money.

Today’s scams are far more sophisticated than the obvious schemes of the past – instead of poorly worded emails or blatant requests for cash, modern scams often come with polished websites, professional emails and convincing phone calls [2]. Increasingly, today’s fraudsters are professionals, using advanced tactics, sophisticated technology and psychological tricks to impersonate trusted organisations to gain your confidence and ensure you part with your cash.

These scams are designed to blend seamlessly into the digital and financial world, making it harder than ever to distinguish genuine interactions from fraudulent ones. However, even the most sophisticated scams tend to have some tell-tale typical warning signs which include high-pressure tactics urging you to act immediately, emails or messages with spelling or grammatical errors, or requests for payments via unusual methods like gift cards or cryptocurrency.

• A call from someone claiming to be your bank, asking for your PIN or account details
• An email, text or call telling you you’ve won a competition – but you have to give personal details to get your prize
• Emails that look like they come from a legitimate company – but are designed to steal your personal details or install viruses onto your computer – are known as phishing. Scammers often impersonate trusted organisations like banks, tax authorities or well-known companies in phishing attacks
• Even more sinister is catfishing, when a scammer uses social media or dating apps to connect with someone and gain their trust – then ask for money

There are a number of steps you can take to keep yourself – and your finances – safe:

 

• Never give out personal information – such as your name, address, email, phone number or bank details – to an organisation unless you’re sure that they are legitimate
• If you receive an unsolicited call asking for personal information, contact the company directly using the contact details on their official website – don’t ask them for a number to call back on
• Banks and other financial institutions will never send an email asking you to click on links or confirm your bank details. If you are ever unsure about an email, call your bank
• Equally, your bank will never ask you for details over the phone – so if you get a call from someone claiming to be your bank, ring the number on the back of your bank card to check it’s legitimate
• If you get an email or text from someone you don’t know – or that seems suspicious – don’t click on any links or downloads
• Keep any letters containing your bank details in a safe place. If you need to get rid of them, shred them and make sure any copies of your personal information have been destroyed.
• If you notice something unexpected on your credit card statement, get in touch with your bank immediately
• Some scammers deliberately target people they believe are vulnerable – for example, by searching public records to see when deaths have been registered. They then target bereaved people, who they believe may not be thinking as clearly as normal
• Pause and think. Scammers want you to feel rushed. Take a moment to breathe and assess the situation before doing anything. Social engineering scams rely on manipulating our emotions. Whether it’s a panicked call from someone pretending to be a relative in trouble or a friendly stranger with an incredible offer, scammers want you to act without thinking

If you’ve been the victim of a financial scam, don’t be afraid or embarrassed to ask for help. Contact your bank and other financial providers – who will be able to advise you on what to do next – and report what happened to Action Fraud. They may be able to track down the scammer and prevent them from harming anyone else.

Financial scams are evolving rapidly, but with the right knowledge, you can stay one step ahead. By recognising red flags and warning signs, questioning anything that feels too good to be true, and staying vigilant, you can protect yourself and your loved ones from falling victim.

Remember, even the most astute individuals can be targeted, so it’s essential to remain cautious and report suspicious activity.

Protecting yourself from scammers starts with staying informed. We've shared some tools and resources here to help you stay one step ahead.

• Action Fraud
• Stop! Think Fraud
• Take Five to Stop Fraud 
• National Cuber Security Centre 

[1] citizensadvice.org.uk/wales/about-us/media-centre/press-releases/9-million-people-caught-out-by-financial-scams-in-the-past-year

[2] ukfinance.org.uk/fraud-and-scams