Fraudsters use a wide range of techniques to trick you into parting with your money, and anyone can fall foul of them. Here’s our guide to the main methods worth watching out for.
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Tackling fraud
Common scams
Phishing
The fraudsters email you trying to trick you into giving out information like your bank account number, credit card numbers, usernames and passwords.
Spear-phishing
Fraudsters' emails include some of your personal information to gain your trust and lower your defences, increasing the chance you’ll open harmful attachments or embedded links.
Vishing
The phone equivalent of phishing. Someone calls you to ask for a payment, or personal information such as bank usernames, passwords and card reader codes.
Smishing
The SMS variant of phishing. Scammers text you asking for your bank details, prompting you to engage with unsolicited digital content or urging you to call a phone number.
Faking it fraud
Scammers often use the latest technology to pretend they’re something they’re not.
Purchase scams
Scammers offer goods at low prices to steal your money. They also use cloned websites with slight changes to the web address to make you think you’re using a genuine site.
Impersonation scams
Fraudsters pretend to be from a trusted organisation such as a bank, the police, a government department or service provider. They ask you to share your bank details or make a payment.
Deepfake scams
Scammers use artificial intelligence to make fake videos of celebrities, mimic phone calls from people you know or create websites and emails that look official.
Invoice scams
Scammers pose as an organisation that you’re due to pay and tell you there’s been a change of bank account details. However, instead of paying your bill, your money goes straight to the criminal’s account.
Spoofing
Spoofing phone numbers and email addresses so they appear genuine is one of the most common methods used by fraudsters.
Romance scams
Scammers fake romantic intentions to try to extort money.
Advance fee scams
Criminals promise a share of a large sum of money in return for upfront payments.
Courier card scams
Fraudsters pose as a courier sent from your bank or the police to trick you into handing over your debit or credit card and PIN.
Overpayment scams
Scammers pay for goods or services using a fraudulent cheque which is made out for a higher amount than the actual value. The fraudster is then reimbursed for the alleged excess amount before the cheque is returned unpaid.
Pension scams
Fraudsters make unexpected offers like free pension reviews and pressure you into making a quick decision about changing your pension arrangements.
Investment scams
Fake companies contact you out of the blue – by texting, cold calling or sending you a brochure — offering what appears to be a legitimate investment with a high rate of return.
Fake emails: parcel deliveries
Fake emails demand more information for a parcel delivery. The aim is to trick you into clicking on a link and revealing personal information. The fraudsters call, pretending to be from your bank's fraud team, and try to persuade you to move your money to a 'safe account' or reveal your card reader codes.
ATM card-trapping
Criminals fit a device to an ATM card slot that traps your card. They may watch you at the ATM or use a camera to capture your PIN. Once you walk away, assuming your card has been retained, the fraudster prises off the device and takes your card.
Cryptocurrency scams
Scammers advertise investment opportunities on social media, sometimes using fake endorsements and images of celebrities or public figures. The adverts link to professional-looking websites to trick you into investing using cryptocurrencies — although they can take traditional currencies as well.
Scammers manipulate software to distort prices and investment returns. They also trick people into buying non-existent crypto-assets. The firms operating this fraudulent activity are usually based outside the UK but will claim to have a UK presence.
Leading scams
Be extra alert for these scams which are very common in the UK.
Bank or police impersonation
You receive an urgent request for personal or financial information, to make a payment or to transfer money to another account for ‘safe-keeping’.
Scammers might pretend you are owed a refund to get you to give away your One Time Passcodes (OTPs), or ask you to approve a payment in the mobile app that you didn't make.
Your bank or the police would never ask for your PIN, password or passcode. They would never ask you to transfer funds or approve a payment.
Investment scams
Always research the investment being offered, make sure the company behind it is
legitimate and check that the seller is licensed. Cross reference the company names against the FCA warning list of unauthorised firms.
If the investment is complex or the person is secretive, it's a warning sign. Be wary of investments that offer much higher or guaranteed returns, or claim to be risk-free. Also beware of AI deepfake videos which show celebrities endorsing investments.
Do your research and always speak to your banker or financial adviser before you make an investment. Do not trust anyone who contacts you unexpectedly. The FCA's ScamSmart investor page is an excellent resource.
Invoice redirection
This scam targets businesses and customers using knowledge gained from compromised email accounts, often by means of malware or phishing.
Fraudsters pose as a creditor or supplier and tell you their company’s bank details have changed. They ask you to make all future payments to a new account. They create invoices with convincing language and logos, and send these to your customer. When the customer pays the invoice, the money goes into the fraudster’s bank account.
Always check any request to change account details and use dual authorisation. Create strong and individual email passwords.
Purchase scams
Fraudsters trick you into buying products that don’t exist or are wrongly advertised.
Be cautious around sales or auctions as the criminals often use time-limited deals to pressurise you into acting quickly. Beware of online marketplaces and avoid sellers who won’t let you collect goods or inspect them first.
Use a credit or debit card. These payment methods usually give better protection and you may be able to claim a refund should you fall foul of fraud. Avoid direct bank transfers. Block browsers and shops from storing your payment details — use different passwords for different accounts and check out as a guest — rather than ‘signing up’ — where you can.
If you’re paying for goods upfront, use these recommended methods and ignore any requests for alternatives. Also, social media feeds can contain ads that take you to fake retailer websites — always look for the padlock symbol.
Authorised Push Payment (APP) scams
APP scams trick victims into paying money to someone who isn’t genuine, or for a different purpose to what was originally intended.
New UK legislation protects private customers, small businesses and charities with an annual income of less than £1 million, with claims up to a maximum of £85,000.