Our friends at Citizens Advice contribute an article covering an issue from their case books each month.
Q: I keep reading about people losing money in scams and I am worried that it might happen to me. What can I do to minimise the risk?
It’s not easy to spot financial scams, so it’s important you know what to look out for. Here is a quick guide to six financial scams:
- Investment scams: Scammers often use fake celebrity endorsements to promote false investments on social media. Scammers can also make fake investment firms seem legitimate by setting up clone websites of real companies.
- Friend in need scam: Be wary if a friend or relative messages you urgently asking for money, as it could be a scammer pretending to be your loved one to exploit your willingness to help. Before replying to unexpected messages asking for financial support, check if your family or friend actually contacted you by calling them directly.
- Romance scams: Be wary if someone you met on a dating platform avoids video calls and meeting you in person but requests urgent money due to emergencies.
- Pension scams: The two main types of pension scam are pension review scams and early pension release scams. Remember that professional advice on pensions is not free, so any unexpected calls for reviews or offers are most likely a scam.
- Debt help on social media: Some financial influencers use social media to promote debt solutions in a misleading way. The solutions may give inaccurate advice which can put your finances at risk.
- Parking QR codes: QR phishing is where fake QR codes are placed in areas such as car parks where you might scan and pay for your parking at ticket machines. If you find a QR code for payments at car parks, watch out for any tampered signs, pay attention to the website you’re led to, and ensure the QR code takes you to a legitimate site.
If you’ve been scammed, don’t feel embarrassed — scams can happen to anyone. Report the scam as soon as possible. Check if you can get your money back by contacting your bank immediately. Contact your local Citizens Advice.
