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The spiralling cost of living has been a gift for fraudsters eager to separate us from our cash.
As well as giving them ever more creative ways to rip us off, the current situation is making us all that little bit more susceptible.
- Catherine Livesey, fraud expert, NatWest
Research from UK Finance highlights the problem. It found that more than half (56%) of Brits are looking for ways to make a bit more cash as the cost of living continues to bite, while one in six (16%) say they’re more likely to respond to an unprompted approach for, say, a loan or investment opportunity – all of which could place people at risk of being swindled.
Some scams can be incredibly convincing and it's all too easy to fall for them. But by being aware of the latest tricks and the red flags that can give them away, it’s possible to beat the fraudsters.
NatWest fraud expert Catherine Livesey says that most of the scams she and her team come across fall into three key areas:
Purchase scams
“This is where you order something online – a bargain air fryer, for example – but you pay for it and the item never turns up,” she says. These scams could be run on fake websites or from fraudulent sellers on legitimate selling sites, and are also increasingly common on social media.
Impersonation scams
Here, you get a message, perhaps by email or text, from a fraudster who is pretending to be someone else – for example, from a bank or government organisation. They’ll usually either ask for a payment or personal information that could be used to defraud you.
“We’ve seen a lot of cases lately of fake messages offering energy rebates,” says Catherine. Money.co.uk research reported an 800% increase in Google searches for energy-bill scams.
“Another common one is the ‘Hi mum and dad’ scam, where you get a message requesting money for an emergency, supposedly from your child,” warns Catherine.
Get-rich-quick schemes
This could be anything from an offer to review your pension to an investment opportunity such as cryptocurrency or shares in ‘the next big thing’. But the investment will either not exist at all or not be worth the money you paid. Fraudsters could target you with a cold call or posts on social media.
Alternatively, you might be approached to be a ‘money mule’. This is where you’ll be offered a cash incentive to receive money into your bank account that you then need to transfer on. This is money-laundering and is illegal. Banks monitor accounts for this type of activity and, if you’re caught, you’ll lose your bank account and could get a criminal record, plus a fine or even a prison sentence.
Catherine shares her tips to help you stay safe:
For more advice on keeping your money safe, visit our Security Centre.
In this series, a money expert responds to your financial hurdles and shares tips on how to overcome them.
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This content is for information purposes only and shouldn’t be regarded as financial advice. While we’ve taken every effort to make sure this information is as accurate as possible, it has not been independently verified.