Financial scams are on the rise: here’s what to look out for

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.