How to spot and avoid scams 101

A scam is a type of fraud that can take many forms, such as a text message, email, letter, phone call, or even a door-to-door visit. Scams are designed to steal your money.

They do this by getting you to reveal your personal details, stealing your information, or even tricking you into willingly handing over the cash.

Scammers will pretend to be an organisation, your bank or even a family member or friend.

Scams can take many different forms. So, it’s important to know the warning signs to look out for and what to do if you have been targeted. 

Recently, fraudsters have been making home visits impersonating MoneyHelper. They have been knocking on doors claiming to be from MoneyHelper, but this is a scam. Do not let them in. We would never come to your home.

It’s important to know how to spot a scam text message, call, or email and to learn to check whether any communication you’ve received is fraudulent.

While some scams can be easy to spot and avoid, others are much more sophisticated. Scammers keep up to date with things in the news and use government schemes that people might have heard of but aren’t familiar with to create new scams or businesses going into administration to create a fake closing down sale type-of-scam.  

It’s important to know how to spot a scam to protect yourself from fraudsters. So here are some ways to recognise one.

• Something that seems too good to be true – concert tickets, a great-looking holiday, a good shopping deal, etc.

• Being unexpectedly contacted by an organisation or company. Followed by being asked for personal information such your PIN or password.

• Someone or a company you don’t recognise contacts you out of the blue.

• The company you’re dealing with is very hard to reach – they don’t have a postal address and/or are nearly impossible to reach by phone.

• You’ve been asked to pay for something in an unusual way – for example, via gift cards or vouchers.

• You’ve been asked and are being pressured to transfer money quickly. 

• Being asked to pay for something that usually doesn’t require a payment – i.e. applying for a job and being asked to pay a fee.

While these are the most common ways to recognise or spot a scam, they are not the only ways, so it’s best always to remain alert and vigilant.

As scams continue to be on the rise and take many forms, fraudsters will continue to target innocent people. But where you can, try to protect yourself and remain safe by learning more about the latest scams, such as the ones we’ve listed here.

• Romance scams – a scam that involves fraudsters adopting a fake online persona to build and gain a person’s trust, usually for financial reasons. Find out more about romance scams at Action FraudOpens in a new window

• Job scams – employment fraud when fraudsters ‘hire’ you for a job that doesn’t exist or ask you to pay a fee once you’ve been ‘hired’. Find out more about job scams at Action FraudOpens in a new window

• Pension scams  – a scam that involves a fraudster trying to gain access to your pension to steal it, usually by making false lucrative promises of unrealistic pension growth. Read more about how to spot a pension scam. 

• Energy scams – some scammers are now pretending to be Ofgem, offering to save you money or help you switch to another energy provider. Learn more about Ofgem scams and how to report themOpens in a new window

• Bank scams –  these involve the fraudulent use of a person’s card to buy things to steal money. Read more about how to spot and avoid bank scams. 

• Social media scams – a type of fraud that is committed online via social media sites or platforms such as TikTok, Whatsapp, Instagram and Facebook.

• Cryptocurrency scams – a cryptocurrency scam is a type of investment fraud involving a digital currency. Sometimes, scammers may impersonate new or existing businesses that offer digital currency. Read more about cryptocurrency scams or investment and scam risks with cryptocurrency. 

While the above scams may be the most common, many more types exist. So, be careful and take a pause if you suspect something is dodgy or doesn’t feel right.

Chances are, you’ve already come across the most common type of scams. However, there are several ways to avoid scams, and here are some ways that you can use straight away.

• don’t unnecessarily share personal information that may help a scammer

• do your research 

• keep your mobile device and/or computer safe with virus protection

• use different passwords for accessing online services 

• don’t trust unexpected contact.

While some scams can be quite easy to spot and avoid, others are much more sophisticated. Scammers keep up to date with things that are in the news, and use government schemes people might have heard of but aren’t familiar with to create new scams.   

The best way to avoid scams is to know how to protect yourself both off and online.

The tactics used by scammers and fraudsters can vary. So, it is best to always be vigilant.

Avoid giving out personal information, keep strong passwords for all of your accounts, use safe and secure WiFi, and avoid transferring money to suspicious services are a few measures you can take to protect yourself against scammers. 

Also, another way to protect yourself against scams is by signing up for email alerts by Action FraudOpens in a new window to learn about scams in your local area.

Scams and fraud are on the rise, and if you’re unlucky enough to be caught up in one, the best thing you can do to begin the recovery process is to report it. 

If you think you’ve been targeted by or fallen victim to a scam, you should report it so it can be investigated. You can do this through Action FraudOpens in a new window (or 101 in Scotland) and the Financial Conduct Authority website using their reporting formOpens in a new window

With scams becoming more common than ever before, remember to be safe and think or take a moment before making a transaction or sharing something that may be a mistake.