Just as it is important to be educated when finding a safe haven for your wealth, in the new world of alternative finance and fintech, being educated when it comes to online safety is crucial to protect your data and your capital.
Due to technological advancements the threat of fraud on your finances is forever changing. Despite the finance industry being dedicated to tackling fraud, criminals stole £1.2billion through scams in 2018. Whilst some victims are able to get their money back, not all do. Regardless, there are countless fraudsters benefitting from the proceeds of their illicit behaviour.
Research from UK Finance revealed that card fraud, cheque fraud, remote banking fraud and authorised push payment fraud make up the majority of crimes affecting people’s money. However a widespread array of scams that are constantly evolving alongside the latest technology, fraudsters are becoming harder and harder to spot. See some of the most common scams below:
Phone scams
- Vishing – phone calls where fraudsters pretend to be from your bank or a government agency
- Investment scams – fraudsters posing as investment companies contact you out of the blue
- Pension scams – retirees will be contacted by criminals wanting to con them out of their pension pots
- Safe account scams – your ‘bank’ will contact you regarding a security breach and ask you to transfer money into a ‘safe’ account
Email scams
- Advance-fee fraud – typically the scam involves promising a victim a large share of a significant sum of money, in return for a small up-front payment
- Phishing – targets will receive an email from what appears as a legitimate source asking you to follow a link
- Push payment fraud – the fastest growing type of fraud in the UK where someone tricks you into sending them money from your account usually by pretending to be someone else
- Loan fee fraud – criminals offering loans but you are asked to pay an upfront fee which they keep
- Pharming – web users are redirected to a fake version of the website they wish to visit
- Computer software fraud – scammers pretending to be Apple or Microsoft needing your payment details
Other scams
- Smishing – a text messaged based scam from somebody pretending to be your bank
- Door to door – a broad fraud category spanning from fake charity collectors to builders who have noticed damage to your property
- Ticket scams – purchasing tickets for an event or concert and being sent fakes or no tickets at all
How to protect yourself from scams
Today, a large majority of scams are taking place online. Here’s our top tips for protecting yourself online:
- Ignore all unexpected phone calls, emails, letters and visitors
- Never give out your personal information – your bank will never ask for it
- Never click on links sent to you via email or text message
- Analyse URLs to check if they are safe and secure – look for a padlock symbol next to the URL
- Make sure nobody bar yourself knows your passwords
- Change passwords regularly and ensure they are strong
- Always complete operating system and virus protection software updates
- Avoid public WiFi – it is safer to use 3G or 4G or a secure WiFi connection
- Use Companies House to suss out if companies are real or not
What to do if you think you have been scammed
The first port of call if you think you have been scammed should be your bank. They will be able to help you decipher what is going on and help step up security on your account. If it comes to light that your card details have been compromised, they will be able to replace your cards for you and help you get your money back due to the Payment Service Regulations 2009 and The Lending Code.
You should also get in contact with Action Fraud, the UK’s fraud reporting centre. When you report your crime to Action Fraud you will be given a crime reference number because your case will be passed on to the National Fraud Intelligence Bureau which is run by the City of London police service.
If you think you have been the target of a scam you should always report the crime so it can be investigated. As well as Action Fraud you can also report through the Financial Conduct Authority using their online reporting form.