Many unsuspecting people are being forced into debt after being targeted by financial scammers.
According to Citizens Advice, nine million Brits have been affected by a financial scam in the last year.
And this has had huge and long-lasting consequences for many victims.
For example, figures showed that almost half have had to borrow or increase their debt so they can make ends meet.
Meanwhile, a quarter have had to turn to friends or family for financial help, and one in five have had to extend their hours or take on an extra job.
What are the most common financial scams?
One of the best ways to protect yourself from possible scams is to understand what methods they’re using.
Citizens Advice has identified the following as being particularly widespread in recent months…
Fake debt advice via social media
Scam accounts offering help with personal finances often target people searching for “debt help” on social media.
Friend-in-need scams
A scammer will pose as someone a person knows asking for money or a 6-digit verification PIN so the criminal can access the victim’s accounts.
Pension scams
Scammers contact a victim offering free pension reviews, suggesting they move money into high-risk or fake investments.
Investment scams
A criminal persuades their victim to move their money into fictitious funds or fake investments such as cryptocurrency, gold and property.
Parking QR code scams
Scammers stick fake QR codes over real codes at car parks, so unsuspecting drivers enter their details and make payments to fake payment websites.
How to protect yourself from scammers
So now that we know how criminals are targeting members of the public, how can you equip yourself to spot scams?
Firstly, remember the old adage that if something seems too good to be true, then it probably is.
Citizens Advice also suggests that you should be wary if you feel pressurised to do something, such as transfer money quickly or hand over any personal details.
And finally, be on the lookout for any telltale signs that something isn’t quite as it should be.
For example, are there typos in emails? Does the phone number and email address you’re dealing with match a company’s listed contact details?
If you have any doubts, then think before you act, and double check any information if you have to.
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.
Lord Michael Bichard, chair of National Trading Standards, added that anyone who’s been targeted by scammers should make a point of reporting the crime.
“Underreporting of scams is a major problem and we need people to come forward so we can stop these criminals in their tracks,” he said.
Written by James Glynn
Senior Financial Content Writer
