Few people expect to fall victim to a scam until it happens to them.
Last year, UK Finance, a banking trade association, recorded a record four million cases of fraud involving stolen money, with many more incidents likely unreported.
Sam Little, 35, a former contestant on the BBC show The Traitors, disclosed last week that he lost £40,000 of his life savings to a phishing scam.
"I like to think I'm savvy, but it can catch anyone,"he stated.
Below are three prevalent scams used by fraudsters and advice on how to protect yourself from them.
1. Stolen Bank Details
The scam: Messages such as "Hi Mum, I've got a new phone" or notifications about missed deliveries are sent en masse by fraudsters.
These messages prompt recipients to update their details, but this is a tactic to collect sensitive banking information for theft.
In the "Hi Mum" scam, the initial message is typically followed by an urgent request for money. Banks have reported an increase in "Hi Dad" scams ahead of Father's Day.
Messages about missed deliveries often include a link that directs recipients to a website resembling an official one.
This site is controlled by criminals who harvest banking data, which is then used in remote-purchase fraud—when stolen card details are used to make unauthorized purchases. UK Finance reported losses of approximately £423 million from such fraud last year.
How to avoid it: Experts recommend typing website addresses directly rather than clicking on links. For example, if a message claims to be from Royal Mail, manually enter the official Royal Mail website address.
Card details can be compromised through various means, including data breaches. However, fraudsters often require a One-Time Passcode (OTP) to finalize a theft. OTPs should be guarded as carefully as bank details and never shared with anyone who calls claiming to authorize a transaction.
Although it may seem obvious, fraudsters are adept at keeping victims on the phone for extended periods to trick them into revealing such codes.
2. Romance Scams
The scam: Victims meet someone on a dating website and develop a relationship over time. Eventually, the fraudster requests money, often under the pretext of visiting the victim.
On average, victims of romance scams—which are currently at record levels—make ten payments to the fraudster. Some victims never accept that their supposed partner is not real.
Fraudsters use fake photographs, often sourced from social media profiles of unsuspecting individuals.
After grooming the victim, the scammer may claim to have had an accident or require funds to purchase a ticket to meet the victim.
How to avoid it: While it may seem unromantic, use reverse image search tools on dating profile pictures to verify authenticity. Most search engines offer this feature, which can reveal if the images are stolen or misrepresented.
Experts advise never sending money to someone you have not met in person and encourage openness with family and friends regarding any doubts about the relationship.
3. Investment Opportunities
The scam: Fraudsters use AI-generated images or voices of celebrities or acquaintances to promote investment opportunities promising rapid and generous returns.
In some cases, criminals have used AI to mimic the voices of family members or friends.
Investment fraud losses have also reached record levels.
How to avoid it: Fraudsters often create a sense of urgency, but it is vital to take time before making any investment decisions.
Legitimate financial firms should be authorized by the Financial Conduct Authority (FCA). Use the FCA's firm checker tool to verify any company.
Always use contact details from the FCA checker rather than links found on social media, which may lead to fraudulent websites.
Additional advice on protecting yourself from fraud is available on the Take Five to Stop Fraud website.
