SCAM YOU BELIEVE IT
The five biggest scams to avoid as complaints soar to their highest ever level
Harriet Cooke reveals the top five biggest scams and how to avoid them
FRAUD and scam complaints are at their highest level ever, data this month reveals.
Around 8,700 victims complained that their bank had unfairly denied them refunds or compensation between April and June this year – a rise of 43 per cent on the same period in 2023.
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More than half of cases related to online bank transfers where customers were duped into transferring cash to crooks.
The Financial Ombudsman Service has warned that these crimes are becoming ever more complex and convincing.
Harriet Cooke reveals the top five biggest scams and how to avoid them . . .
PURCHASE SCAMS
PURCHASE fraud, predominantly from Facebook Marketplace, is a huge issue, accounting for 67 per cent of all push payment fraud, where customers are tricked into making a payment to a fraudster.
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Criminals list all manner of fake goods — including clothing, gaming consoles, phones and even pets — for bargain prices online, and then disappear as soon as you pay them.
Many online platforms offer secure payment options, but fraudsters convince the victim to pay via a bank transfer instead, which you should never do.
The total number of purchase scam cases soared by 34 per cent from 2022 to 2023, while the amount lost rose 28 per cent to £85.9million, according to industry body UK Finance.
That’s the highest loss and case total ever recorded for this category of con.
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HOW TO AVOID: Never pay via bank transfer until after you have received or collected the item.
If you use PayPal then choose the goods and services payment, not friends and family option, as your purchase will be protected.
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TICKET FRAUD
CROOKS target desperate music and sports fans by listing tickets for big events such as Glastonbury, Taylor Swift concerts, the World Cup and, most recently, Oasis gigs.
Twitter and Facebook are both favourites for posting bogus tickets, according to TSB.
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The bank said one recent scam involved hacking into people’s personal Facebook profiles and posting fake resale tickets to dupe their friends into sending money for them.
Frauds usually happen when concert tickets go on sale and again just before the event.
Scammers usually ask for the money upfront, then the tickets do not come through.
HOW TO AVOID: Only buy from official ticketing sites — such as Twickets or Ticketmaster’s face value exchange platform — that list resale tickets securely.
Check if the ticket seller is a member of the Society of Ticket Agents and Retailers.
If it seems too good to be true, then avoid.
PARKING SCAMS
MOTORISTS are being targeted by fraudsters, with TSB seeing a huge rise in drivers being bombarded with texts demanding money for parking fines.
Clicking the link provided takes you through to a convincing, but fake, government website aiming to dupe motorists into thinking they have parked incorrectly, or overstayed their time slot.
The scam demands either a payment that goes straight into a fraudster’s pocket, or to enter your personal information, which can be used to hack into your bank account.
HOW TO AVOID: Never click on links in unsolicited texts or emails and always double check the website address is genuine.
ROMANCE FRAUD
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THIS kind of scam occurs when you think you have met the perfect partner online, but they are using a fake profile to bond with you.
The process can take weeks or even months and ends up with you being convinced you are in a loving relationship.
The conversation will then turn to cash because for whatever reason — whether it be visa fees, flight tickets or health issues — your new “partner” needs to borrow some before you can live together.
The total number of romance scam payments increased 31 per cent in 2023 from the previous year, and are up 200 per cent from 2020.
This scam category also saw its highest ever loss total, at £36.5million, and the highest number of cases ever reported.
HOW TO AVOID: Don’t trust anyone you haven’t met in real life.
Talk to a friend about any “relationship” you are in to get a sense check, and don’t get caught up in emotional pleas for help.
Never share your bank details with anyone.
INVESTMENT SCAMS
AS with romance scams, investment fraudsters will build up a rapport with you to win you over.
They then promise financial opportunities like gold, property, carbon credits or cryptocurrency that will yield incredible returns on your cash.
Victims are typically snared by social media posts, online ads, old-fashioned letters or cold calls from criminals.
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There were 10,226 investment scam cases in 2022 to 2023 and losses totalled £107.8million.
HOW TO AVOID: There are legitimate investment firms to do business with, but never invest without checking the FCA register to ensure they are genuine by calling the official company number.
Family loses £3m in 'bank attack' trick
CASES published by The Financial Ombudsman shine a light on some of the most cruel and devious scams.
In one harrowing example, a family lost almost £3million to fraudsters posing as both their bank and the Financial Conduct Authority.
The criminals persuaded the female victim that her bank account was under attack from hackers and that she needed to move her money to a safe place.
The frightened woman and her husband ended up having their money moved to cryptocurrency wallets set up in her name, and from there into a “safe account” with another bank – which turned out to be bogus.
In another awful case, a man referred to as Mr H fell victim to a “job scam” where he was contacted by someone on a messaging app offering him work.
The role was to be carried out remotely and Mr H was told he could earn up to £50 per day doing affiliate marketing tasks.
He needed to complete “missions” on an online platform and would earn commission having done so.
But he ended up investing a lot of his own money into the account, which he then struggled to withdraw.
The criminals said he needed to pay fees and taxes to get his earnings, leading him to send even more money.
In total, he transferred almost £68,000 to the scammers in a month.
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