Financial fraudsters ‘constantly evolving their tactics’

Fraudsters are using different tactics to trick people into paying money or sharing financial details, but many consumers are on the alert for possible scams.

According to the Financial Conduct Authority (FCA), nearly a fifth (17%) of people who experienced financial scams heard about it by seeing it promoted on social media.

Meanwhile, the same number heard about it via a telephone call, and 16% learned about it via text message, WhatsApp or another messaging service.

Consumers taking precautions

Thankfully, many people are taking steps to reduce their chances of falling victim to a scam.

For example, nearly three-quarters (72%) said they always or usually ignore unsolicited calls, emails or texts about investment or pension opportunities.

Meanwhile, six in ten (60%) said they always or usually check the authenticity of emails, messages or calls before sharing any personal or financial details.

But while this is undeniably positive, the FCA believes there is “room for improvement”.

Check you’re dealing with a genuine company

Financial fraudsters will often make it hard for people to know if they are dealing with a real organisation.

That’s why the FCA has launched Firm Checker, a tool that lets people check if a firm is authorised and allowed to provide financial services.

“Ruthless fraudsters are constantly evolving their tactics so they can steal money from innocent victims,” said Sheree Howard, executive director of authorisations at the FCA.

“Whether you’re considering an investment, pension opportunity, loan or other financial service, use Firm Checker to confirm the firm is authorised and help fight financial crime.”

How to stay safe from scammers

Scammers are very good at pretending to be trustworthy and legitimate.

So it’s more important than ever to recognise the warning signs and take steps to protect yourself.

Be suspicious of social media ads

Scammers often use platforms like Facebook and Instagram to target people with tempting ads or posts that lead to fake websites.

Double-check the web address

Bogus websites might have small clues that they aren’t genuine, such as unusual domains and small spelling errors.

Avoid bank transfers

Use secure payment methods, such as credit or debit cards, or trusted digital wallets, so you have protection if something goes wrong.

Do your research

Always check a seller’s ratings, feedback and history before making paying any money.

Don’t click on links in messages 

Links from fraudsters may contain malware or take you to fake websites, so only pay through a retailer’s official website.

Don’t act impulsively

Scammers try to push you into making a quick decision, so don’t rush into anything.

And don’t forget the adage that if something seems too good to be true, then it probably is.

Check out our guide on how to outsmart online scammers for more tips to help you stay safe.

Reporting a scam

If you’ve been scammed, you can report it to Citizens Advice and they’ll pass information onto Trading Standards, who’ll decide whether or not to investigate.

It’s also worth reporting it to Action Fraud on their website or by calling 0300 123 2040.

If you spot an online scam advert, you can report it to the Advertising Standards Authority.