Fraud is on the Rise: How to Protect Yourself
Fraud and scam complaints are now at their highest levels, according to the Financial Ombudsman.
Being a victim of fraud can have a devastating impact on anyone. However, as someone on a low income, you can be even more vulnerable to the potential consequences of having your money or data stolen.
With fraudsters becoming ever more sophisticated, scams are becoming increasingly difficult to spot. To help ensure you don’t become a victim of financial scams, we’ve put together these top tips to protect you and your family.
Why Fraud Prevention Still Matters When You’re on a Low-Income
It’s easy to think that fraud and the potential to steal your money is only something that those on a higher income should worry about.
In reality, if you have your details stolen or if someone accesses your money without your permission, it can make life even more difficult by putting even more pressure on your finances.
We want you to become savvy about scams to avoid the following risks:
Financial loss - You may pay for goods or services that aren’t genuine, or someone may gain access to your bank account and take your money. Either way, you will lose money.
Difficulty accessing your money - If your money gets stolen or if your bank needs to freeze your account, it can leave you without access to funds to pay for the essentials until the issue is resolved.
Impacted credit score - Often, scammers will use your data for identity fraud to take out loans or credit cards in your name. This can impact your credit score, which can have long-term consequences.
Difficulty accessing financial products - With a reduced credit score, you may not be able to access credit under your own name.
Emotional harm - Beyond the financial impacts, having your identity or money stolen can create a lot of stress and upset.
Furthermore, under new rules announced in October 2024, banks will now have the power to charge fraud victims £100 if they request any money back that they have lost due to a scam.
NimbleFins adds that if victims of a banking scam have been “found to have been grossly negligent, they may not receive a reimbursement.”
In other words, if your bank thinks you haven’t taken steps to protect yourself from scams, they may not give you any money back that has been taken from you. Even if you are eligible to get your money back, your bank may charge you for their services.
Don’t Play Quizzes or Enter Competitions on Social Media
It might seem like harmless fun to do a quiz on social media, or even enter a competition. Unfortunately, these things are often created to collect your data so that your information can be passed on to scammers.
While competitions can sometimes be created by genuine companies, the vast majority of the advertisements you see online to ‘win’ stuff is just not true. That’s why you must carefully vet the competition holder before you enter your details.
In some cases, social media quizzes ask for very personal details such as your eye colour or the place you were born. Again, this seems innocent but it’s actually a way of stealing your identity.
Think about it, what’s in it for the person giving free stuff away or creating online quizzes?
You may also like: The Importance of Trusted Money Advice
Don’t Engage With Fake Texts
Scammers use special tools to generate every possible phone number in the UK to get your number. They will then send texts at random to these numbers. Sometimes, they also steal or buy your data from elsewhere.
They will then send you a text impersonating someone you would normally trust, such as:
Banks
Energy companies
HMRC
Friends or family ‘needing help’
Job offers
Because the language seems quite urgent and serious, it can make you panic and click on the link or call the number. Sadly, this is all part of the plan to get you to hand over your details.
Often, these messages will mention banks or companies that you don’t even have an account with. For instance, being sent a warning by Lloyds Bank about potential credit card fraud when you bank with Halifax.
The ‘Hi mum and dad’ text scam is especially unpleasant, as the scammer makes out that one of your children is in trouble and needs money.
Unless you double-check if the message is genuine for any of the above scenarios, it’s really easy to get scammed.
Look Out for Delivery Company Scams
Royal Mail have recently issued advice about potential scams that tell you that a parcel is waiting for you, or that you need to pay money for an item to be delivered.
Delivery companies such as Evri have also been warning customers about scammers. They state they have closed down 5,000 fake websites and seen a 268% increase in scam alerts involving their platform in the last year alone.
When you are receiving a genuine parcel, you will usually be notified by the company where you purchased the item from. The message will tell you the items you bought and the expected delivery time, and will match what you were expecting to hear.
Sometimes, the message will even tell you the delivery driver's name, and you’ll usually be given a tracking code.
Always be suspicious if you are notified about deliveries for things you or your family haven’t ordered. You would never be sent a text out of the blue asking for money, as the company wouldn’t dispatch the item before you had paid for it (including any postage).
Be Wary of Scammers Calling Your Landline
According to new research by The Telegraph, 50% of all calls made to landline numbers are now scams.
Granted, most of us use a mobile phone these days rather than a landline. However, if you have any friends or relatives who still use a landline, it’s important to be vigilant.
You may get a phone call pretending to be your bank, HMRC or companies such as Microsoft or Amazon.
What’s really unfortunate is that older people are more likely to stay on the phone due to loneliness and isolation. This can make them, plus anyone who is vulnerable, a target for scammers.
If you are not sure if a landline call is genuine, or if the person is asking for your personal details or money, you should hang up.
Search for the company’s real details online, (i.e. HMRC). You will be able to see if the phone number is genuine or not.
Who Called Me is also a handy free service to try to identify if the caller is who they say they are. You can also use this website to verify calls to your mobile.
Top Tips for Avoiding Becoming a Scam Victim
Don’t trust easily - You should always be sceptical of an email or text, especially if it contains spelling mistakes, that asks you to click on a link or requests money from you. Likewise, if the message seems to have come out of the blue (i.e. a purchase you haven’t made, or a bank you don’t bank with).
Ask friends and family - A second opinion can be really helpful, especially if the person is tech-savvy and is someone you trust.
Don’t give out your data willingly - All scammers need to steal your identity is basic details such as your name, date of birth and address. Be very careful where you share your details, including on social media platforms or other websites.
If in doubt contact the company - Find the official details of a company who has contacted you to check if the message is genuine. Often, scammers will make up email addresses, website links or phone numbers.
Don’t click on links or enter your bank details - Do not engage with emails or texts sent to you, especially if something doesn’t seem right or you were not expecting the message.
Fair for You - Help if You’re On a Low Income
We hope the above tips will help keep your finances and personal data safe.
Remember, if you do receive a text, message or call that doesn’t seem right, be suspicious unless you can prove it’s genuine. You can also report scams and get further advice from Action Fraud.
If you’re new here, Fair for You helps those on a low income to afford the things they need for their home and family.
As a not-for-profit lender, we’re different from other credit providers. Take a look around our website to view our full range of products and shopping cards to learn more.
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