As the world of banking and investing has evolved, unfortunately, so have the habits of scammers and fraudsters.
More and more of our money is now managed online, or at least via cards rather than cash, and therefore criminals have turned from burglary and pickpocketing to targeting people digitally or over the phone.
It is vital to ensure you are familiar with the techniques that scammers use so you recognise them when they appear and can prevent yourself from losing money to them.
Before we go into how to avoid fraud and scams, it is essential to note that online banking and investing is generally very safe. Large banks have fraud teams that often pick up on potentially suspicious behaviour, block the transaction and call you to confirm whether it was a purchase or transfer you wanted to make or not. Likewise, investment platforms have similar teams.
If you spot something yourself, it is usually easy to call the relevant team who will look into the issue and more often than not reimburse you if it was a transaction you did not make. That said, it is useful to have contact details for bank and investment fraud teams to hand so you can be vigilant if you want to query anything.
From a financial advice point of view, we set up notifications linked to your investments so we are alerted when a withdrawal is requested. If we see anything that looks unusual, we flag it with yourself and the provider straight away to double check it is legitimate.
It is also important to say that you shouldn’t feel ashamed if you have been convinced by a scammer in the past, they can be very believable and have honed their strategies to persuade people to give them access to money. We know of a couple of people who have been targeted but luckily, have helped them to dodge and report the criminals. By reporting it, you'll make it more difficult for them to deceive others.
With this in mind, there are numerous ways you can spot and avoid becoming target to scammers and fraudsters. We haven’t covered all steps, and it is wise to get advice from local authorities if you need to, but these are some of the key areas to be aware of…
Spotting a scam
If any of these scenarios come up, it is likely ‘too good to be true’:
- Guaranteed ‘get-rich-quick’ schemes, anything that comes out of the blue and offers you a large amount of money in return for a smaller investment is suspicious.
- Someone asking you to share your bank account details, or verify a password or a PIN by sending it to them.
- Prizes that need you to send money up-front to claim your winnings.
- Time-limited offers that ask you to act quickly.
- Companies with vague contact details.
- Companies that call you repeatedly and pressure you.
- Offers that you're told not to share with anyone else.
General advice
Whether you are contacted via email, phone or post – here are some things to keep in mind:
- Don’t hand over money or sign anything until you’ve checked someone’s credentials and their company’s.
- Insist on having time to get independent advice before agreeing to offers or deals.
- Never send money or give banking/personal details to anyone you don’t personally or a business you aren’t familiar with.
- A bank will never ask for your details over email, phone or post, they will always use their official website or app to verify your identity. Never give bank or card details over email or phone to someone claiming to be your bank.
- Look out for imposters. These are people pretending to be someone you know or trust to convince you to send them money. They may even claim they are with the police or another government agency. Messages might ask you to “confirm” or “update” confidential personal financial information, such as bank account numbers, or request that you file official-looking forms, such as insurance claims, or pay taxes on prize winnings.
Websites, Emails & Social Media
Scammers can strike online via your device so be vigilant. Even when you aren’t completing an online transaction or banking, there are ways hackers can gain access to your personal information.
- Do not open email from people you don’t know. If you are unsure whether an email you received is legitimate, try contacting the sender directly via other means. For example, if someone claims to be a family member, call them to check the email was from them.
- Be wary of links and new website addresses. Do not click on any links in an email unless you are sure it is safe. Malicious website addresses and links may appear almost identical to legitimate sites but scammers often use a slight variation in spelling to lure you. Always log on to a website directly rather than clicking on links in an email.
- Don't share personal information, or information that could help a scammer. This could be things like as your pet’s name, your maiden name or your date of birth, as they could give them a clue to your passwords or PIN.
- Use strong passwords to improve your online security. Microsoft has useful advice on this here. You can also use a password generator to create one.
- Keep your anti-virus and firewall software up to date on your computers and mobile devices.
- Don't use public WiFi to make any financial transactions, like online banking or shopping. Ensure it is your personal WiFi or at least that of a friend or family member that can only be accessed by entering a password.
Over the phone
- Ask for the name of the person who is calling you and who they represent. Check the information by calling the company’s head office.
- Wait for at least 20 minutes before you call an organisation or company that has called you unexpectedly. You could also use a different phone line in case the caller has kept the line open.
By post
- Make sure that you destroy or shred any receipts or post with your credit card or personal details on. Also shred any envelopes or labels with your name and address on.
Useful contacts
Action Fraud
- Centre for reporting fraud and internet crime in England, Wales and Northern Ireland. Call the helpline for advice on preventing fraud and what to do if you’ve been scammed or defrauded, or use the online fraud reporting service.
- Tel: 0300 123 2040.
- www.actionfraud.police.uk
Financial Conduct Authority (FCA)
- Provides advice on choosing a financial adviser. The FCA has a scam warning tool on their website for checking if aninvestment offer might be a fraud and online register you canuse to check whether a company is authorised by the FCA.
- Tel: 0800 111 6768.
- www.fca.org.uk.
- ScamSmart Investment checker: www.fca.org.uk/scamsmart.
- Financial services register: register.fca.org.uk/s
National Cyber Security Centre
- Provides information and advice about staying safe online.
- www.ncsc.gov.uk
Get Safe Online
- Government-backed website that gives free advice and tips on using the internet securely.
- www.getsafeonline.org.
