Types of scam

There are two main ways to spot a phishing scam:

1. Look at how you’re addressed in the email. Scammers will use a general greeting such as Dear Sir, Dear Madam or Dear Customer. Legitimate emails will use your name.
2. The email address the message has been sent from. Open the email and expand the pane at the top of the message and look at the email it was sent from. If it’s a real message, it will come from a recognisable address – such as ‘noreply @ bank.com’. Scammers won’t be able to send messages from a real domain name. So the email addresses will be filled in with random letters or numbers, such as ‘noreply @ 1234.bank.com’, or have deliberate spelling mistakes.

Never click the links or attachments in a suspicious email. If you think there might be a legitimate problem with an account, go to the website directly and log in. This way, you’ll never be caught out by a fake website.

Some organisations, such as HMRC, have an email address you can forward these emails on to, which helps them combat scams.

It’s very difficult to spot. The big tip-off is that the caller will be desperately trying to get you to reveal your information, which no legitimate caller would ask you to do.

If you’re sure the call is fraudulent, just hang up the phone.

If you’re not sure, hang up the phone and call your bank/building society on the number on your debit or credit card.

This means you can be sure you’re going to the right people. And if there is a problem, they can tell you about it.

But be careful. Scammers can hijack your phone line. So when you hang up, wait a few minutes before calling your bank or building society or use a different phone.

Identity theft is when your personal details are stolen and used for crime activity. Identity fraud can happen when those details are stolen then used to commit fraud.

If you’ve had your identity stolen, find out how to report the crime, what your bank can do to get your money back and how to get support if you’ve been left in financial difficulty.

If you’re worried about identity fraud and need to consider actions, such as a protective registration, CIFASOpens in a new window can help you.

You can also look into getting a freeze on your credit reportOpens in a new window  You’ll need to do this with Experian, Equifax and TransUnion separately.

These are often social media-based scams from celebrity endorsements or hacked accounts from people you know, although you might be targeted in other ways, such as email, via phone or people coming to your house.

Although investment scams vary, the principle remains the same. You’re encouraged to hand over money to invest in a company or product that doesn’t exist. There is usually no existing investment, along with the scammer stealing your money.

It can be quite difficult. Many of the companies the scammers are calling from or trying to get you to invest in can look legitimate – with websites, social media profiles and fake testimonials.

See if the investment company or adviser investor is regulated by checking the register on the Financial Conduct Authority (FCA) websiteOpens in a new window Check whether the company is on the FCA’s warning listOpens in a new window or you can contact them directly on 0800 111 6768.

If you have doubts you can check to see if the company existsOpens in a new window by searching for it on the Companies House website.

No legitimate company will contact you out of the blue about an investment opportunity. Treat any unexpected contact like this with caution.

A big warning sign should be if you’re told an investment offers a high rate of return with little risk. Cryptocurrency investments are often used as money is difficult to trace.

Report scams to the FCAOpens in a new window or Police ScotlandOpens in a new window, even if you have not lost money.

Or, if you’ve had money stolen through suspected investment fraud first contact your bank and then report it online to Action FraudOpens in a new window or call them on 0300 123 2040.

Another growing way of people being scammed is via cryptocurrencies.

Cryptocurrency is digital money. It doesn’t exist in physical form – so there are no coins or notes. Cryptocurrencies are all transferred, stored or traded electronically.

See our blog on how to spot cryptocurrency and Bitcoin scams.

There are a variety of job scams. These range from dodgy remote working schemes, promises of a new career, where you’re asked to pay upfront for training or materials, to being offered non-existent jobs abroad, where you’re asked to pay a fee to organise visas and accommodation.

A more recent type of job scam is the ‘work from home’ and flexible working employment scams.  You may be told that you’ll make easy money – and you might be asked to pay a fee upfront.

Scammers behind these fraudulent schemes will ask for personal details such as your passport and driving license details. The scammers will also create a WhatsApp-based fake peer group chat to ‘prove legitimacy’ as well.

To further prove this fake legitimacy, ‘wages’ are usually paid for the first transaction. However, after that you are asked to pay increasing amounts to be able to access the next level of ‘earnings’. The scammers then take the money, and you are blocked on WhatsApp and are usually unable to contact them after that.

No employer will ask you to pay them. Ignore any scammers who contact you with suspicious sounding job offers.

To find out more about employment fraud, visit Action FraudOpens in a new window

However, the ‘leads’ or products turn out to be worthless and – worse still – your registration details might be sold on to other scammers.

Since the pension freedoms were introduced in 2015, retirees are able to access large sums of money from pension pots.

An unfortunate side-effect has been that this group is now being targeted by scammers because they can potentially access large amounts of cash.

Pension scams will usually follow a similar path to investment scams.

Unsolicited phone calls, or any unrequested contact via social media or email, should be treated as suspicious. Anything involving high returns with low risk should ring alarm bells. From 2019, the Government banned cold calls by telephone about pensions, but scammers are using social media and email to get around this.

If you want to be sure a company is legitimate, check the FCA registerOpens in a new window , the FCA warning listOpens in a new window and the Companies House website

Report scams to the FCAOpens in a new window, Action FraudOpens in a new window or Police ScotlandOpens in a new window, even if you have not lost money.

Or, if you've had money stolen through suspected investment fraud, report it to Action Fraud onlineOpens in a new window or call them on 0300 123 2040.

Some fraudsters will connect with you on a dating website using a fake profile. They’ll be up-front about living overseas and will email you, getting to know you over time and becoming affectionate and romantic.

When you’ve become involved, they’ll start asking for money for a sick relative or for a plane ticket to come and visit. They’ll take your money but never appear.

Some scammers are now pretending to be Ofgem, offering to save you money or help you switch to another energy provider.

Find out about what to do if you’re worried about your energy bills.

They may do this by contacting you via text message, email or another way, asking for personal details such as your bank details. These are scams, as Ofgem would never contact you this way or ask for personal information.

Authorised Push Payment (APP) fraud, commonly known as ‘bank transfer scams’, is when scammers trick you into sending money to them. They do this by posing as a legitimate business, often by intercepting or hacking your email account. It’s also the tactic used by scammers posing as your bank.

This scam often occurs when you’re in the process of buying a house, having building work done on your home or booking a holiday. The scammer intercepts a company’s email and sends you a message asking for payment. Because you’re expecting to have to pay a bill, it can be difficult to spot that this is a scam.

There’s a new common scam where you might get a text or WhatsApp from a new number, telling you that they’re a friend or relative that needs money. The messages can be worryingly convincing. If in doubt, call or message the person they’re pretending to be on their old number to double check.

You might think you are making a legitimate investment through your bank but the fraudsters are taking your money.  You might be encouraged to buy cryptocurrency, open up a new bank account with a digital bank which has no history of previous transactions. These are common warning signs.

Spotting push payment fraud can be very difficult as it can occur at a time when you’re expecting to be asked for payment or at a time when you feel under pressure, for example when a scammer is pretending to be your bank. Don’t assume all messages are genuine.

If you are paying by bank transfer, you need to be 100% confident that you know who the recipient is, as it can be hard to get the money back. Be warned, your bank or the police will never ask you to transfer money to a ‘safe’ account, so this is a clear warning sign that it is a scam.

Check the company you expect to be paying sent you the email, and that the bank details match.

If you do fall victim, new rules introduced by the FCA mean you can now make a complaint to your bank and the bank receiving the payment.

New rules that came in on 7 October 2024 now require banks and payment providers to reimburse you if you sent money by UK bank transfer and are a victim of APP fraud. They must send your refund within five working days after you make a claim. The new rules include an “optional £100 excess” that your bank or payment provider can deduct from your claim.

You’re covered if you use:

• Faster Payments: this is what you will typically use to send free, quick bank transfers instantly to another person or business.
• CHAPs: this is usually used for high value transfers, guaranteed to arrive the same day. For these transactions you’re covered by an equivalent rule set out by the Bank of England.

Before 7 October there was a voluntary code for banks and payment providers. This meant that there was no mandatory requirement for banks to refund victims of APP fraud.

• Any payments made on or after 7 October 2024 are covered, but if you made a payment before this date and think it could be a scam, your claim would fall under the previous voluntary code of practice.
• The maximum amount you can claim is £85,000. If you lose more than this, you can raise a claim with the Financial Ombudsman Service. You can find out how the Financial Ombudsman Service can help you in our guide.
• Claims are subject to a 13-month time limit after the last payment was made to a scammer, so it’s important to notify your bank or payment provider as soon as possible.

You’ll be contacted, usually on the phone by someone claiming to be from your bank’s fraud department, the police or a regulatory body such as the FCA. They’ll say your account has been compromised in some way and encourage you to transfer all your money from your bank to a ‘safe account’ they control.

Never give out your bank account, PIN numbers or credit card details unless you are certain who you are dealing with.

It can be very difficult as the scammers play on your fears about people illegally accessing your money.

But the easiest thing to remember is banks will never ask you to transfer money into a ‘safe account'.

If your account has been hacked, your bank will be able to stop money coming out of it very quickly and there would be no point in transferring your money to a different bank account.

If you’ve been contacted on the phone, just hang up. And if you’re worried about your account security, call your bank directly.

If you’re a victim of this kind of fraud, contact your bank.

If you’re searching for loans online, you might be contacted by fraudsters offering you a loan directly.

You’ll be asked to pay an upfront fee to receive the loan, but the money will never be sent to you.

You should never be asked to pay a fee in advance for a loan.

Scammers might also ask you to pay the fee in unusual ways, such as by iTunes vouchers or a money transfer service.

Make sure you’re using a legitimate loan provider by checkingOpens in a new window the FCA website.

This is similar to phishing, but instead of sending you an email directly, the scammers target the website you’re visiting.

You type in the correct website address, but you then get directed to a fake version, where you inadvertently put in your login details and secure information.

You need to be very observant. As you’ve entered the correct web address, you would naturally assume you’ve gone to the real website.

Scammers have also designed these fake websites to look just like the real thing.

Look at the website address. It won’t show up as you’re expecting, but as a selection of numbers. Or perhaps something similar to the real name, but with letters switched around or a different spelling.

Be observant when you’re logging into or visiting websites and look out for suspicious website addresses.

It’s also important to keep your operating system and anti-virus software up to date.

These are text message-based scams.

Scammers will contact you claiming to be from your bank, saying you need to update your personal details or that there’s an issue.

The text might contain a link, like a phishing scam or a phone number to call. The phone number is fake and when you call the fraudsters will attempt to get you to reveal your details.

It’s difficult to spot, so if you get a message like this – be suspicious.

One giveaway might be the phone number in the text is not the same as the one on your credit or debit card.

If scammers spoof the number, it might appear very legitimate, even dropping into an existing text message chain.

If in doubt, call the number on your card and find out if they have tried to contact you.

Don’t click any links in text messages. Always go directly to the website and log in as normal.

This is where scammers pretending to be from Apple or Microsoft contact you by phone or email. They say they need your payment details to fix, update or validate your software.

It’s very unlikely computer companies would make a phone call about these kind of issues if you haven’t asked for one.

It’s best to treat the calls with the same suspicion as you would treat any other unexpected call or email.

If in doubt, contact your computer or software supplier and never give out your payment details.

These can take many forms, but instead of relying on the anonymity of online communications, they simply knock on your door.

While they can be investment and pension scammers, they can also try and scam you in a more practical way – like selling you a product or service.

A common example is a person claiming to be a builder who happened to notice some damage to your roof when they were passing. Fake charity collectors and salespeople are other examples.

A scammer might even claim to be from government agencies, including the Money and Pensions Service or MoneyHelper.

The Money and Pensions Service has never, and will never, turn up to your home or contact you out of the blue via phone, WhatsApp, email or text.

If there are people claiming to be us who call at your home, call 101 to report the scammers, or 999 if you feel unsafe.

Always be suspicious of anyone arriving unannounced at your door. In the age of digital communications, it’s unlikely any legitimate company will attempt to do business this way.

It’s also important not to be fooled just because someone has identification. It’s very easy to make a fake ID and it’s no guarantee of legitimacy.

Don’t engage with anyone who knocks on your door unannounced.

And report anyone you suspect of trying to scam you or your neighbours to the police.

This is when you buy tickets for a concert or sporting event, for example – but the person, or website, you’re buying from either doesn’t send the tickets, or sends you fakes.

This is most common on ticket reselling or exchange sites, which makes getting a refund very difficult.

To combat touts, many events issue tickets that can only be used by the person who bought them, so tickets on reselling sites won’t work.

Spotting this scam can be difficult as you might not realise you’ve been scammed until the day of the event.

One way you might be able to spot it is by looking at the website.

If it’s one you’ve never heard of, doesn’t have proper contact details, or only lists a mobile phone number or PO box – avoid it.

Avoid buying tickets from social media or online auction sites where it might be difficult to trace the seller and get a refund.

Check the website you’re buying from is a memberOpens in a new window of the Society of Ticket Agents & Retailers (STAR).

When paying, make sure the website address starts ‘https’, not just ‘http’, as this means the site is secure.

Pay by credit card (if it's more than £100), debit card or PayPal, rather than bank transfer, as you have more protection if something goes wrong.

There are plenty of other ways scammers might try to part you from your money.

They might steal information from your social media accounts, through public wi-fi connections, or through various types of insurance fraud.

Here are some common scams that are harder to spot and prevent.

This is another kind of email and social media scam, and probably the most well-known. You get a message telling you that you're in line for a big pay out. Sometimes these messages come out of the blue, or sometimes it could be someone who’s trying to build a relationship with you. Typically, they’ll tell you that a wealthy person is in trouble, and you’ll be rewarded for your help.

Fraudsters will try to convince you that you can pay an advance fee for a loan, goods, services or financial gains which you’ll never receive.

You’ll be asked for your bank details. But, of course, there’s no money and the scammers will use the details you send to access your bank account and possibly clear it out.

Similar schemes exist with wills and claiming an inheritance from a long-lost relative.

As with many of the scams we’ve mentioned so far – if it sounds too good to be true, it probably is.

Again, it’s worth checking the email – as the name the message is from and the email won’t match. Bad spelling and grammar can also be a giveaway.

Ignore the email and never send payment details or personal information or pay a fee for a loan or other payment which you weren’t expecting.

While not every MLM is a scam, if you join an MLM you’re still likely to lose more money than you put in.

Typically, an MLM will be a large organisation made up of hundreds of individuals selling merchandise and services. For example, beauty products, candles, cleaning products and books – from home or via ‘parties’.

MLMs have a similar structure to pyramid schemes. And in many MLMs, it’s much more lucrative to recruit others than it is to earn commission from sales.

Simply put, this is when someone has a deliberate crash so they can claim on the insurance. In reality, it’s a lot more complicated.

Groups, usually criminal gangs, will target people who they think will have good car insurance, or who are less likely to put up a fuss – for example, mothers with children.

The scammers’ car will be in front of you and suddenly slam on its brakes, or unexpectedly pull out of a junction – causing you to crash into them.

They will insist the crash was your fault, but be willing to hand over their insurance information.

A few weeks later your insurance company will tell you the details of the other driver’s claim. This will exaggerate the costs, such as for car hire or whiplash injuries.

If you see an email or an advert for a ‘miracle cure’ for baldness, cancer, impotence, acne or weight loss – steer clear.

You could be offered something that appears to be a legitimate alternative medicine but doesn’t actually work.

Or you might think you’re getting drugs and medicines very cheaply or without a prescription, but they might not be the real thing – if they even turn up at all.

In some cases, these fake medicines can actually damage your health.

Here you could unknowingly end up breaking the law and helping criminals. This is when you use your bank account to take delivery of, and then forward, stolen money – and be paid a commission for helping.

Falling for this scam would mean you’re breaking the law by money laundering.

Con artists can pose as either fake buyers or fake sellers. If they buy from you, they appear to pay for the goods. But as soon as you’ve sent it to them, the payment is withdrawn.

Fake sellers get you to buy non-existent products and simply disappear with your money.

If you can, use tracked postage to send the item, and keep hold of your receipt. Don’t agree to let the buyer arrange for their own courier to come and pick up the item.