4 ways to spot a financial scam

Why do we use the term "scams"?

When thieves con you into giving them access to your money, that is a scam. This can cost you money, but it can also make you feel terrified and guilty. You can safeguard your finances and yourself by being aware of the tricks con artists employ.

Scams come in a variety of shapes and sizes. Scammers can persuade you to purchase a fake item or spend money when you don't have to. To attempt to obtain your personal information, bank account information, or money transfers, they may pose as your bank, the police, or another reputable organisation. To do this, use a phone, email, letter, text message, or social media.

Scammers can also pretend to be someone they’re not, such as pretending they’re there to do building work on your house, in order to be let into your home to steal from you. It may seem scary but there are ways to keep yourself safe.

There are four techniques to stay away from con artists.

1. Be cautious when shopping online

Online shopping is becoming more widespread. Although it can be a time-saving method of shopping, there have been tales of consumers ordering products that never showed up. Some dishonest merchants create fictitious online businesses in order to steal money. When buying online, it's crucial to make sure you're remaining safe and avoiding these scams.

Tip - Make sure the firm you're purchasing from is legitimate.

• Through GOV.UK, you may look up a company's information. This will reveal whether or not they are a registered business. Spend a few minutes reviewing the website before making a purchase if it's one you haven't used before. Start by looking up the terms and conditions. There should be a street name in the company's address rather than merely a post office box.
• Look up what others have said about the business. Don't rely on reviews the company has posted on its own website; instead, seek for reviews on several websites like Which?
• Use a credit card if you have one if you decide to proceed with the transaction and the item costs more than £100 because, in the event that something goes wrong, you might have a legal claim for credit card payments made beyond that amount. Speak to your bank even if you used a debit card or paid less money.
• Don't rely on the presence of a padlock in your browser's address bar to confirm that you are making a purchase from a legitimate business.

2. Acquire awareness about phishing scams.

Emails sent by scammers may appear to be from a reputable business, government agency, utility company, or financial organisation.

They try to fool you into clicking on a dangerous link in the email, after which they request sensitive data like personal and financial information from you. Phishing is the term for this.

Scammers frequently email potential victims requesting them to transfer money to another account, make a payment, or offer personal or financial information while posing as your bank or utility provider.

Tip - Observe caution when clicking.

• Don't click on links or download anything if you unexpectedly receive an email from a business with an odd email address or one that has never emailed you before asking for money or payment. By doing this, you can get a virus on your computer. To increase your protection, make sure your antivirus software is up to date.
• Visit a company's website to learn how to contact them there if you are unsure whether an email you received from them is legitimate (using the telephone number or email address provided).
• If you receive an email which seems too good to be true or is trying to make you take urgent action, stop and think if it could be a scam. Ask someone you trust for a second opinion.

3. Stay safe from people at your door pretending to be someone they’re not

Scammers can also approach your house and pretend to be someone they’re not. This could be someone pretending they’re there to do building work on your house but really they want to be let into your home so they can steal from you.

Tip - Remember it's okay to keep the door closed to strangers.

• If you have an unexpected visitor at your door, always ask to see their ID.
• If someone claims to be from a recognised organisation, then don’t be afraid to ask to see proof or check with the organisation itself.
• If possible, call a friend or family member to let them know that someone has come to the house you don’t recognise and discuss why they have called.
• Don’t be afraid to shut the front door while you check they are who they say they are. If visitors are genuine, they will understand.
• Consider putting a ‘no cold callers’ sign on your front door. You may be able to get one from your local council. They are also available online.



4. Be cautious when using the phone.

Scammers may also call you and pose as someone else. This is frequently your bank or utility company trying to gain your sensitive information like your PIN or password. Never divulge personal details to a complete stranger.

It's crucial to protect oneself secure and recognise when the conversation should cease. If you are uncertain, don't be scared to end the call.

Tip - Contact your provider to ask how they might contact you.

• If you receive a letter, email, text or phone call you’re unsure about, which seems too good to be true, or needs urgent action, ask someone you trust for a second opinion.
• A real bank or organisation will never contact you out of the blue asking for your PIN, full password or to move money to another account. Check your bank or utility provider’s website or call them to see how they will and won’t communicate with you. For example, find out what type of security questions they’ll ask if they phone you.
• Don’t feel pressured to act straight away. Take your time and seek advice if you receive a call asking you to do something you’re not sure about. 
• Unwanted sales and marketing calls can be stopped for free by signing up to the Telephone Preference Service. Most junk mail can also be stopped by opting out at the Mailing Preference Service.
• Never let somebody talk you into downloading software, or to log on to your computer or other devices, such as your mobile phone or a tablet, remotely during or after a cold call. 

Getting support with scams

Scammers use clever, high-pressure tactics so you shouldn’t feel ashamed if you have been scammed. There is help available.

If you're worried you’ve been scammed or given your details to the wrong people, tell someone close to you, and report it to your bank and the police straight away.