Fraudsters are always on the lookout for victims who let their guard down long enough to be exploited, but they often use the same tactics - and make the same mistakes.
Read on to learn about five of the most common types of scams we’ve seen this year and for expert advice on how to avoid them.
1. Phishing scams
The messages often prompt you to click a link to visit a website under the guise of something being wrong, such as a subscription expiring or to secure your account after a fraud attempt.
Phishing can also take place on social media, where fraudsters publish posts that link through to dodgy websites. If you click a link in a phishing message, you’ll often be taken through to a spoofed website where you’ll be asked to enter your name, address and bank details.
In early 2023, Action Fraud warned about a rise in reports of scammers impersonating McAfee (2,200 reports), BT (676) and Netflix (625). There were also 300 reports of phishing attempts involving diet pills.
Once you’ve given your details to a scammer, they can be used to scam you there and then, and to target you in future. Information you enter on a dodgy website, for example, could be used by a fraudster to call you posing as your bank. As the scammer has some of your information, you might be inclined to trust the call as genuine.
2. Investment scams
These scams involve fraudsters trying to persuade you into signing up to investment ‘opportunities’ with the promise of huge returns.
Data from UK Finance shows £114m was lost to authorised push payment investment scams (where the victim is tricked into sending money to a criminal) in 2022.
Investment scams commonly come in a few broad categories. More sophisticated scams may involve a fraudster grooming you over time to gain your trust, before pressuring you into parting with your money.
Investment scammers want to make as much money from you as they can, so once they think they’ve hooked you in, they’ll dial up the pressure. This can include showing you false statements displaying how well your investment is performing, then claiming you need to invest more before you can make a withdrawal.
Once you’ve caught on to the scam and ceased contact, you’ll need to be vigilant against recovery scams, where victims are contacted by ‘companies’ promising they can get their losses back for them.
3. Vishing scams
Bank transfer scams (known as ‘authorised push payment fraud’) are one of the most dangerous types.
A fraudster calls you impersonating a member of staff from your bank. The caller may already have some of your details from a previous data breach. Often, the scammer will tell you your account has been compromised and encourage you to move money to a ‘safe’ account or give them remote access to your device so they can make the transfer.
In some instances, fraudsters even send spoof ‘verification’ text messages. These scams can take a devastating emotional and financial toll on their victims.
Other examples of vishing include scams that originate with a letter, email or text, asking you to call a phone number to update a subscription or account details, or to take advantage of an offer.
Action Fraud issued a warning in March after receiving 275 reports of this particular scam.
4. Romance scams
Romance scams typically begin on dating sites or apps. They usually involve the scammer forging a passionate connection with a potential victim, showering them with compliments and confiding in them over weeks or months.
Once they’ve groomed their victim, the scammer will start asking them to send money for a variety of made-up causes. Scammers may guilt trip victims by telling them they can’t trust anyone else or have no one else to turn to.
Finally, there are hybrid romance and investment scams. These involve the scammer grooming the victim before encouraging them to invest their money in a property or cryptocurrency platform which is controlled by the scammers.
It’s difficult to assess the scale of losses to romance scams. Figures from UK Finance show £31m was lost to romance scams in 2022, but the true amount is likely to be much higher as victims may feel too embarrassed to report the scam.
5. Shopping scams
These scams involve fraudsters tricking unsuspecting shoppers into buying items through dodgy websites, auction sites or via social media. Criminals often pose as sellers of high-value items such as cars, tech products and event tickets.
What to do if you've been scammed
If you fall victim to a scam, it’s vital you act immediately.
If one of your online accounts has been compromised, change your password straight away.
How to report scams
If you see something that looks like a scam, report it.
By reporting scams, you might be able to prevent someone else from falling victim.
undefinedsource https://www.which.co.uk/news/article/the-5-most-common-scams-of-2023-and-how-to-avoid-them-aj3FA3R4fYye