Cybercriminals use a wide range of tactics to con people out of their money. Stay one step ahead with these five crucial tips to avoid financial scams.

1. Stay informed

Knowing how to spot a financial scam is your first line of defence. Fraudsters are constantly changing their tactics so regularly educating yourself about common approaches like phishing, identity fraud and romance scams are crucial to staying one step ahead.

Action Fraud and other consumer protection organisations offer a wealth of valuable resources and updates on emerging scams. You could also subscribe to newsletters from trusted financial news outlets like The Financial Times, attend webinars on financial safety, or follow reputable financial organisations on social media.

2. Secure your personal information

Practising good information security is another vital step for warding off financial fraud. Insecure personal information is highly valuable for scammers, and they’ll go to great lengths to acquire it. Implementing strong security practices can significantly reduce the risk that your data will be stolen and used against you.

Use complex, unique passwords for each online account and update them regularly. Enable two-factor authentication wherever possible and be cautious about the personal information you share on social media and public platforms.

Remember to secure your offline data too. Shred documents containing personal information before you bin them, avoid writing your passwords down, and consider keeping important documents in a secure location such as a safe.

3. Do your research

Scammers rely on you taking them at face value. Research the claims made by anyone who contacts you out of the blue, even if they seem legitimate. Genuine organisations will understand if you want to verify the details of a situation.

Unexpected contact, a sudden change of details or time-sensitive opportunities are all indicators of a scam. Search online to see if other people have experienced a similar situation or contact an organisation directly to confirm if the circumstances are genuine. If someone contacts you claiming to work for someone you trust, such as a solicitor or financial adviser, stop the interaction and contact that person directly.

4. Take your time

Criminals want you to act without thinking. They usually try to play on your emotions or rush you into decisions. They may tempt you with time-sensitive opportunities or claim that other consumers are already benefiting from their offer.

Take a step back to assess the situation objectively, do your own research and ask someone you trust for advice. Scammers want you to act quickly and may refuse to provide contact details or threaten to withdraw an offer if you don’t. Remember that if something seems too good to be true, it probably is.

5. Report suspicious activity

If you think you’ve been the victim of a financial scam you should immediately report it to the police. You should also contact your financial institutions to freeze your accounts, seek advice, and potentially prevent fraudulent transactions.

You should still report scam attempts even if you haven’t become a victim of a scam. You can report suspicious activity to Action Fraud and other consumer protection organisations to increase awareness of new scams and criminal tactics.

Contact the police if you think you’ve been the victim of a financial scam. You can also forward suspicious emails to report@phishing.gov.uk and forward suspicious text messages to 7726 for free.

For more information about financial scams visit www.actionfraud.police.uk. If you’re in England or Wales, you can also report fraud or cybercrime to Action Fraud on their website or by calling 0300 123 2040.

Written by Issy Minturn 27th August 2024