Different types of scam

• Cost of living scams
• Investment scams
• Pension scams
• Phone scams
• Email scams
• Doorstep scams
• Relationship scams
• Fraud recovery scams.

Criminals are taking advantage of the ongoing cost of living crisis. They are making new scams to play on people’s money worries. Scammers have:

• sent text messages and emails pretending to be the government or an organisation like Ofgem. They have offered things like tax rebates, grants, and bill refunds
• sold fake products meant to help you save energy. This includes giving misleading information about roof insulation
• taken advantage of people needing more money with financial scams. These include investment scams, courier fraud, banking scams, and illegal lending
• sold fake goods at a cheaper price. They have used scam adverts on social media, put fake reviews online and made copycat websites that are hard to spot as scams.

You can keep yourself safe by knowing what cost of living support is available and where any help is coming from. 

You’ll need to apply to your local authority to get extra help, like the Household Support Fund (England), Discretionary Assistance Fund (Wales) or Crisis Grant/Community Care Grant (Scotland). A local authority would never contact you to get your bank details.

It’s also worth being wary of all cold-callers and ‘too good to be true’ deals. See our page How to avoid a scam for general tips on protecting yourself from door-to-door scams.

Investment fraud can be complex and much harder to spot.

• You might keep getting calls, emails or even visits from companies offering investments that promise high returns.
• The callers are often well-spoken and seem to know lots about finance.
• The offer may be time-limited, with a bonus if you sign up now.
• Their websites and brochures look good, with impressive testimonials.
• Companies House might list their company.

If you suspect someone is trying to scam you, you should hang up or close your door to them. Real investment companies will not contact you out of the blue.

Always get impartial, independent financial or legal advice before making any investments. You can find an Independent Financial Adviser through the Society of Later Life Advisers (SOLLA).

The Financial Conduct Authority’s ScamSmart hub has more information about investment scams. They have a warning list, so you can check if companies that contact you are genuine.

Usually if you’re over 55 and you have a private pension, you can access some or all the money in that pot. Pension scammers may:

• contact you out of the blue by phone, text, email or in person
• offer you a free pension review or a one-off investment
• offer investments, often overseas, that promise high returns.

It’s illegal for someone to cold call you about your pension. If someone contacts you in this way, it’s likely to be a scam.

If you lose your money in a pension scam, you are unlikely to get it back and you may still have to pay tax of up to 55%.

The Pensions Regulator has more information on pension scams. For free, impartial advice about how to invest your pension pot, visit Pension Wise.

Courier fraud

Scammers may contact you saying that they’re calling from your bank, PayPal account or the police. They then trick you into revealing your PIN and handing over your debit or credit card.

They may:

• say a fraudulent payment has been seen on your card
• ask you to call back directly - they’ll keep the line open so when you call, you’re connected straight back to them
• ask for your PIN number or ask you to key it into your phone.

The scammer then sends a courier or taxi to pick up your card. Once they have your card and PIN, they can spend your money.

If you get a call like this, you should:

• wait for 20 minutes before you call your bank
• if you are calling you bank, use a different phone if possible, or call somebody else in the meantime
• never reveal your PIN to anyone. Your bank or the police will never ask you for your PIN, bank card, cheque book, or to withdraw money.

There are many different ways this scam might happen. For example, a scammer may say it’s an undercover operation, so you must not tell your bank or the police. They might ask you to transfer all your funds into a ‘safe account’. They might also ask you to buy an expensive item to help them identify counterfeit goods.

Fake computer support calls

Someone may call claiming to be from an electronics company, like Microsoft, Apple, or a local service. They’ll tell you there’s a problem with your computer, and offer to fix it for a fee. They may also ask to take control of your computer. If you give them access, they’ll try to find out personal information, like your passwords and account details.

Microsoft, Apple and similar firms will never call you. If you receive a call like this, hang up.

You might get an email telling you that you’ve won a cash prize. For example, a recent scam has been a fake email falsely claiming you have won a prize hamper. You will also be told that you will have to pay an administration fee and/or call a premium rate number to get this money. You might also be asked for your full bank details, to ‘release’ the money to you. 

This is called Advance fee fraud.

Remember:

• you cannot win money or a prize in a competition you have not entered
• never send money to someone you do not know and trust.

As this is a scam, there is no prize even if you reply to it. If you reply, it’s also likely that the scammers will add you to a list of people to contact again. To protect yourself, ignore any emails like this.

Other email scams can look like:

• phishing emails - these try to trick you into telling someone your bank details. They may direct you to copycat websites that look like your bank’s website
• stranded traveller emails - these will be sent from a friend whose email account has probably been hacked. It will tell you they’ve been robbed abroad. The scammer will then ask you to send them money
• advance fee emails - the sender will tell you they have something valuable, and will offer a reward if you help them move it. To do this, you’ll have to make a payment or provide your bank details
• inheritance emails - a scammer will contact you and say someone has left you money in a will. You will have to send an administration fee to get the money
• emails offering miracle cures and medications from online pharmacies.

You should:

• delete all messages without reading them if they’re from somebody you do not know (if you do read them, do not open any attachments as they may contain a computer virus)
• ignore spam/junk email – do not reply or click on any links, even to unsubscribe.

If you live in England or Wales, report anything you suspect could be a scam to Action Fraud. If you live in Scotland, contact Police Scotland. You can also forward emails to the company’s reporting email address which you’ll find on their website. You could also forward suspicious emails to report@phishing.gov.uk.

Bogus callers

These are people who try to get into your home to steal from you or to get your personal details. They may work in pairs and could pretend to be:

• strangers who say they need to use your phone because of an emergency
• employees of companies you’ve heard of, like gas or electricity meter readers. They may have fake uniforms and ID
• charity collectors
• someone doing market research.

You should:

• be suspicious – never let anyone you do not know and trust into your home
• always check ID – you can call the company if you’re unsure. Do not call the number on the caller’s ID as it may belong to another scammer. You should look in the phone book or on the company’s website
• set up a utilities password so you can check the caller is genuine – contact your supplier for details
• contact the Charity Commission to check that a charity is real. You could also contact the charity to confirm that they’re making collections in your area
• put up a ‘no cold callers’ sign. If you have one up, people who are genuine will not knock on your door. This way, you know to be suspicious of anyone who does knock on your door
• call the police if you’re suspicious or feel threatened.

Rogue traders

A trader may call to sell you something, or say you need work done, often urgently. They may put pressure on you to make a quick decision and not take no for an answer. If you agree, you could spend a lot of money, have no consumer rights and end up with poor quality work.

You should be wary of any doorstep traders. Always take your time before deciding to buy something or have work done.

You could also:

• put up a ‘no cold callers’ sign
• check that anyone selling door to door has a valid pedlar's certificate issued by the police. They must show you the certificate if you ask
• get recommendations from family or friends if you need work done
• look for a reputable trader on the Trustmark website.

Scammers can use dating websites, social networks and chat rooms to get personal details or money from people.  Be careful about the information you give out and trust your instincts.

Be wary of someone who:

• asks a lot of questions but does not reveal much about themselves
• rushes you away from the site where you met to communicate by email, text or phone instead
• tells you a hard luck story and/or asks you to send them money
• asks you to keep the relationship secret.

Never send money or give personal information or bank details to a person you’ve never met in person.

If you fall victim to a scam, you may be contacted by a company offering to help you recover your money for a fee. This is another scam. You will not get your money back and may end up losing more.

If you’re a victim of a scam, contact Action Fraud if you live in England and Wales. Contact Police Scotland if you live in Scotland.