One in five people across the UK fell victim to a finance scam – such as a fake pension or investment opportunity – in the last year, Citizens Advice. The charity estimates from a survey that it means some nine million people have been affected.
Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “Anyone can fall victim to a scam and we know scammers aren’t only targeting those looking to invest money, but also those simply going about their day-to-day lives. It’s particularly worrying to see the impact on people’s finances afterwards, especially if they have to borrow to get by.
“It’s important for us all to be on our guard – if you’re not sure about something, take your time and get advice.”
As for the toll scams can take on people’s lives, over two in five of those scammed (43pc) had to borrow or increase their debt in some way to get by afterwards. About a quarter (24pc) had to turn to friends or family for financial help, while a fifth (20pc) had to take on extra jobs or shifts at work. Citizens Advice points to the most common financial scams:
1. Fake debt advice via social media (estimated three million people affected).
A person searches for ‘debt help’ on social media but gets snared by scam accounts. These accounts offer help with personal finances, including debt solutions, then push forms to get hold of personal data.
2. Friend-in-need scams (estimated 2.5 million people affected).
A scammer poses as someone a person knows to either ask for money or ask the person to forward a six-digit verification PIN number (which will then give access to the victim’s accounts).
3. Pension scams (estimated 2.5 million people affected).
The scammers get in touch unexpectedly to offer free pension reviews with big promises. They then move the person’s money into what are actually badly run, high risk or entirely fake investments. Some scammers will offer to help a person release funds from their pension without fully explaining the implications, or charge massive fees to do so, and then move the money into their own schemes.
4. Investment scams (estimated 2.5 million people affected).
The scammer convinces a person to move their money into a fictitious fund, or to pay for what later turns out to be a fake investment, including gold, property, carbon, cryptocurrencies or even wine.
5. Parking QR code scams (estimated 2.5 million people affected).
Stickers with bogus QR codes placed over genuine codes at car parks, directing consumers to fake payment websites where their personal and financial information is stolen.
Over three-quarters (76pc) of all types of finance scams were conducted through social media sites, according to the charity.
Tips to spot scams:
Be wary if it seems too good to be true – for example, a pension that yields much more than you’d expect.
You’ve been pressured to transfer money quickly.
You’ve been asked to pay in an unusual way – like using an iTunes voucher or a transfer service.
You’ve been asked to give away personal information, such as passwords, PINs or verification codes.
You spot signs that the organisation or person you are dealing with isn’t genuine – perhaps the email address doesn’t seem quite right. Always step back and double check if you have any doubts at all.
If you’ve been scammed: Citizens Advice suggest that you talk to your bank or card company immediately if you’ve handed over any financial and/or sensitive information, or made a payment. Report the scam to the UK police Action Fraud line on 0300 123 2040.
You can also contact Citizens Advice; which offers impartial advice online, over the phone, and in person, for free. Ring 0808 223 1133 or 0808 223 1144 for Welsh language speakers. Visit https://www.citizensadvice.org.uk/.
About the survey
Savanta surveyed 2,117 consumers from across the UK aged 18 and over, in August.
Parking scams
The Chartered Trading Standards Institute (CTSI) warns consumers meanwhile that parking charge scam messages are becoming more common. Text messages tell consumers that they have an outstanding parking charge, and sometimes threaten that if they do not pay it in time, they will be banned from driving or be taken to court. The messages include a link to what Trading Standards call a very convincing copycat Government website; any payments however end up with fraudsters.
Trading Standards point out that local government will never text you about parking fines; and all real parking fines contains details on the back of how to pay or appeal. Their advice is to never visit links that you receive via text from unknown numbers; and never scan QR codes that you receive from unknown sources. Any scam text should be forwarded to the number 7726. Tim Day, CTSI Lead Officer for Doorstep Crime, Scams and Consumer Vulnerability, said: “Anyone receiving an official looking text message about parking fines should give themselves time to think before responding. All legitimate parking fines will contain full details of where and when the parking infringement took place, how to pay and the parking charge appeals process. Never click on weblinks or respond to text messages about parking fines.”
