What to watch out for – the basics
Scammers often pretend to work for large, well recognised and respected companies. Whether this be banks, insurance companies, technology companies or charities. It’s very rare that your bank will call you and ask for your details over the phone.
Here we’ve outlined several things you can look out for to help you spot scammers:
If the caller has called in relation to a banking/insurance product or facility that you have no knowledge of, hang up the phone and call the company back on a genuine number found on their website.
Avoid clicking on any links contained within messages you’re suspicious of. In recent years, scammers have started sending text messages often stating you have charges to pay on a parcel, or provide you with a link to track a parcel you’re not expecting. Most legitimate couriers will email you as well as sending a text message if you have an expected parcel arriving.
In today’s world, scammers will more commonly send out mass emails hoping a few people will read into them. These emails are often sent from made-up email addresses. For example, Hodge colleagues will always email you on an email address ending in @Hodge.co.uk and never Hotmail or Gmail. Emails from scammers will usually be poorly worded with multiple punctuation and spelling mistakes.
Money mulling
Money muling is a type of money laundering, which is a criminal offence. It’s where an individual, known as the ‘money mule’ moves the proceeds of crime on behalf of criminals. Criminals often target people through fake job adverts on social media, offering easy money for transferring or holding funds.
Transferring criminal money is a crime. You could get a criminal record and even face a prison sentence.
How to protect yourself
- If a job offer promises quick money for little effort, be suspicious
- Never agree to receive or transfer money for someone you don’t know
- Be wary of unsolicited contact from people you don’t know
- Don’t open accounts for other people to use or hold money for them.
Safe account scams
Scammers can be incredibly convincing, pretending to be your bank, the police, or another trusted organisation. A key tactic is to pressure and panic you into acting quickly, before you have a chance to assess whether their claims are legitimate. They may use information they already have about you to help them sound believable. They may tell you your money is at immediate risk and pressure you to move it to a ‘safe account’—but once you do, it’s gone.
How to protect yourself
- We will never ask you to move your money to another account – no legitimate bank will
- If someone claiming to be the police asks you to withdraw cash, hang-up – it’s a scam
- If you’re ever told to lie to your bank about a transaction, stop – it’s a red flag
- Scammers want you to panic and act fast—take a step back and think before doing anything.
Screen sharing scams
You might think you’re just getting tech support, but scammers use screen-sharing app to gain control of your computer. Scammers may pose as your bank, an investment company, or even your internet provider, offering to ‘help’ with a transaction or fix a problem. They’ll ask you to download a screen-sharing app, allowing them to see and control your device—even after the call ends.
How to protect yourself
- Never let anyone access your computer to help with finances
- Be cautious if asked to download software you don’t recognise
- If something feels off, stop and contact your bank directly.
Romance fraud
There has been a significant increase in Romance fraud according to Action Fraud, due to the pandemic leading to people looking for love online. The scammer creates a fake profile on a dating sight to social media platform and targets individuals to try and gain their trust. They then ask the victim for money for investments, legal fees, or travel.
Requests for money early on my be red flags as well as reluctance to talking about their personal life. If you have concerns, talk to someone you trust for help. If you think you have been scammed, make sure you report it to your bank and to Action Fraud.
Investment scams
With all the hype around cryptocurrency and ‘get-rich-quick’ schemes, scammers are cashing in. They might promise high returns in Bitcoin, stocks, property, or pensions—but once you hand over your money, it’s gone.
How to protect yourself
- Be wary of ‘once-in-a-lifetime’ or ‘too good to be true’ investment opportunities – especially from strangers
- Never let someone else set up an investment for you, especially if they control access
- Before investing, check if the company is FCA-registered and get independent financial advice
- Check out the five questions the FCA recommends you ask yourself before making an investment
One-time passcode (OTP) scams
Scammers use fake phone calls and websites to trick you into giving them personal details or a one-time passcode. You might think you’re completing a survey, registering to receive benefits or a refund, or confirming your identity with a trusted company. Once they have the code, they can access your account.
How to protect yourself
- Always read OTP messages carefully – if the code doesn’t match what you’re doing, don’t use it
- You’ll never need an OTP to get a refund or cancel a transaction – if someone says otherwise, it’s a scam
- If you get an unexpected call asking for an OTP, hang-up and contact your bank directly.
Cost of living scams
Fraudsters take advantage of financial pressures, such as the cost-of-living crisis, to trick individuals to think they are saving you money. Examples of these are fake discounts, government support for bills, or low-interest loans. They can even go so far as to set up fake loan websites with low interest rates to lure you in. Once you’ve applied for the loan, they’ll say you need to pa they can release the money. You pay the ‘fee’, but the loan never arrives.
How to help protect yourself
- If an offer seems too good to be true, it probably is
- Use trusted retailers and discount websites – type in the web address yourself, don’t click on ads
- Before applying for a loan, check if the provider is regulated by the FCA
- If you’re struggling financially, talk to your bank – they may be able to help
Mobile messaging scam
Mobile messaging scams involve a message being send to you, often via WhatsApp, by someone pretending to be your son or daughter claiming they have lost their phone. Once you have the number saved, the scammer will tell you they need money after their ‘incident’, hoping that you will hand over your financial details.
To avoid this scam, make sure you take time to think in these situations, remember that scammers prey on peoples kindness in these situations. You could verify it is the person by calling them directly, makes sure you are 100% sure the request is from someone you trust before you send any money over or your financial details.
You can turn on your WhatsApp two-step verification to protect your account and make sure you are happy with your privacy settings. If you realise it is a scam, make sure you report it to Action Fraud.
Pension pot scams
Scammers are exploiting pension reforms, by persuading people to release their retirement savings and transfer them into inappropriate or even non-existent investments. They often use the uncertainty created by the pandemic to trick these people out of all their life savings.
If you are contacted out of the blue about your pension then it is likely to be a scam, so make sure you are aware of free pension review offers. You can also check the FCA’s Financial Services Register to ensure that anyone offering you advice or other financial services is authorised by the FCA. Be wary that some scammers may try to pretend to be a FCA registered firm, so make sure you are only using the details on the FCA Register.
Spoof HMRC phone calls
Action Fraud has also had an increase in the reporting of malicious calls and voicemails, to members of the public claiming to be from Her Majesty’s Revenue & Customs (HMRC). Fraudsters are able to spoof genuine HMRC telephone numbers to deceive their victims over the phone. They often will tell the victim that due to their non-payment of tax or other duty, they are liable for prosecution or other legal proceedings to settle the balance. They may suggest that the victim can avoid this by making a payment via bank transfer, which then goes into the fraudsters bank account.
The fraudster uses fear to force the victim to pay them money. For example they may threaten immediate arrest or bailiffs to the victims address, and in some cases deportation. Often the period in which the alleged tax was due is distant ago enough that there is little to no paper work to verify the claims.
In genuine cases from HMRC, they will make direct contact via post before following up with a phone call at a later date.
Phishing emails
Phishing emails can appear very convincing, but there are a few things you can look out for which may reveal an email to be not quite what it seems, including:
- Spelling mistakes or grammatical errors
- Being addressed to Sir or Madam rather than you directly
- Unusual email addresses – if you check the address, it may appear legitimate at first, but look closer, it may not be as legitimate as it first appeared. Hovering over the address with the mouse can sometimes show a different email all together
- They may offer something of value for free, for example lots of phishing emails currently claim to be from a local council offering money in line with the Government’s COVID-19 initiatives
- There will often be a sense of urgency to create a sense of panic that you should respond immediately. You should never feel pressured to respond.
Useful resources:
Action Fraud
Action Fraud is one organisation who can help if you think you're a victim of fraud.
Age UK
You can find more information on the Age UK website for regular updates on the latest scams.