How to Protect Yourself from Financial Scams

Financial scams are a growing problem in the UK. In 2022, UK consumers lost a combined £1.2 billion to fraud, according to the UK Finance Fraud Report. 

This is a staggering amount of money. So it's important to be aware of the different types of financial scams as well as educating yourself and your family about money so that you can spot scams, and avoid them.
 

Types of financial scam

Here are some of the most common types of financial scam in the UK:

• Advance fee: This involves the promise of a large sum of money in return for a small upfront payment. For example, you might be told that you have won a lottery but need to pay a processing fee in order to claim your prize. Once you pay the fee, you will never hear from the scammers again.
   
• Tech support: This involves the caller pretending to be from a legitimate tech company. Such as Microsoft or Apple. They will tell you that there is a problem with your computer and that you need to pay them to fix it. However, there is no real problem, and you will just be giving your money to the scammers.
   
• Phishing: This involves the sending of emails or text messages that appear to be from a legitimate company. Such as your bank or credit card company. The emails or text messages will often contain a link that takes you to a fake website that looks real. Once you enter your personal information on the fake website, the scammers will steal it.
   
• Emergency scams: These types of scam involves the caller pretending to be from a government agency. They will tell you that there is an emergency and that you need to pay them money immediately. However, there is no real emergency, and you will just be giving your money to the scammers.
   
• Imposter scams: These types of scam involve the caller pretending to be someone you know. such as a friend, family member, or government official. They will often ask you for money or personal information.
   

How to Spot a Financial Scam

There are a few things you can do to spot a financial scam:
 

• Be suspicious of any unsolicited emails or text messages. If you receive an email or text from someone you don't know, don't click on any links or open any attachments.
   
• Be wary of any offers that seem too good to be true. If someone is offering you a large sum of money for a small upfront payment, it's probably a scam.
   
• Don't give out your personal information to anyone you don't trust. This includes your name, address, phone number, bank account details, and credit card number.
   
• If you're not sure if something is a scam, contact your bank or credit card company directly. They will be able to advise you.
  
   

What to Do If You Think You've Been Scammed
 

If you think you've been scammed, there are a few things you should do:
 

• Report it to your bank or credit card company. They will be able to put a stop to any fraudulent transactions and help you get your money back.
   
• Report it to Action Fraud. Action Fraud is the UK's national fraud and cybercrime reporting centre. They will investigate what has happened and help to bring the criminals to justice.
   
• Keep a record of everything related to the scam. This includes emails, texts, phone calls, and any other communication. This will help you with your report to Action Fraud and your insurance claim.
   

Don't be afraid of asking for help. If you've been scammed, there are people who can help.

By being aware of the different types of financial scams and taking steps to protect yourself, you can help to reduce your chances of becoming a victim.

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Source: https://www.ukfinance.org.uk/policy-and-guidance/reports-and-publications/annual-fraud-report-2023