Families in the UK are facing a cost of living crisis, and with the increased financial strain, many are turning to loans and credit cards just to make ends meet. This has resulted in a surge in fraudulent activities, as fraudsters take advantage of the vulnerable population. It’s imperative to be vigilant and educate oneself about the various types of scams that are prevalent in the UK.
In this article, we will explore some of the most common scams that UK citizens need to be aware of right now and offer tips to prevent falling victim to fraud.
Debt Relief Scams
Debt relief scams are one of the most common types of scams, with fraudsters offering to help people get out of debt for a fee. They may even claim to negotiate with creditors on your behalf, but in reality, they do nothing and leave the victim deeper in debt. It’s essential to be wary of anyone who offers help, especially if they contact you out of the blue. Research and choose to work with reputable organisations only, and never give out personal or financial information to strangers.
Job Opportunity Scams
Another popular scam is the “job opportunity” scam, where the fraudster promises to help you find a high-paying job, usually in a foreign country. They offer to assist with the visa process, but there is no job, and the victim ends up losing money. Always be cautious when dealing with unknown individuals who offer to help.
Rise in Advance Fee Cases
Advance fee fraud is a rapidly growing problem in the UK. In this type of fraud, loan applicants are informed that they must pay a fee to get credit but never receive the funds. The FCA recently restarted a campaign to alert the public to loan fee fraud following a 36% increase in calls to its call centre regarding this scam in June 2022.
Energy Scams
Scams that prey on consumers’ financial strain from rising energy costs are also on the rise. Research by internet security company McAfee showed that the number of scams mentioning one of the “big six” energy companies increased by 10% in the first three months of this year compared to the same period last year, with a 27% increase in January alone.
Criminals frequently pose as energy providers, inviting potential victims to claim a refund through email and asking for personal information, such as banking details, which they will use to steal money.
Money Mule Schemes
Another concerning trend is the rise in money mule schemes, where criminals persuade victims to allow them to transfer stolen money via their accounts to hide their financial trails.
Tips to Prevent Fraud During The Cost of Living Crisis
- Be vigilant of scams involving identity theft, such as fake police or bank personnel who demand personal financial information.
- Examine all emails, text, or social media communications for warning signs such as misspelled words, poor formatting, or impersonal greetings. Verify that the message has come from a known contact or organisation.
- Be wary of investment portfolios promising high-end returns and other bargains that seem too good to be true.
- Fraudsters often create intricate web structures that look genuine and pose as influencers, professionals, or even fellow investors to deceive their intended victims. If you need clarification on a business or website, use online verification services such as check.getsafeonline.org.
