Knowing what to do if you’ve been scammed and where to get help is crucial. Here are five key steps to recover from a financial scam.

1. Act quickly

Time is crucial when dealing with financial scams. Take immediate action if you think you’ve been scammed to minimise any further damage. If you’ve shared personal information, contact your bank or building society right away to report the fraud and freeze your accounts to prevent further unauthorised transactions.

If scammers have posed as a person you trust, such as a family member or your financial adviser, it’s important to let them know in case their identity has been stolen. If the scam involved theft of your own identity, you may want to contact major credit reference agencies like Experian and Equifax to place a fraud alert on your credit report. This will make it harder for scammers to open new accounts in your name.

2. Gather evidence

Collect as much relevant documentation as you can to aid the recovery of stolen funds. This should include any emails, texts or other correspondence between you and the scammer, as well as any contracts, marketing materials or web addresses they sent to you. Be careful not to click on any suspicious links.

Make detailed records of any transactions or bank statements that show suspicious activity, and retain any fake invoices or payment requests the scammer sent you. Keep a close eye on the accounts you think may be compromised and record any further suspicious transactions.

3. Report the scam

Report the scam to the police, especially if your money has been stolen or if a scammer is threatening or harassing you. If you live in England or Wales, you can also report a scam to Action Fraud at www.actionfraud.police.uk or by calling 0300 123 2040. If the scam involved phishing or malware you can report it to the relevant online platform or service provider.

You should also tell your bank, building society or other financial institution about the scam so they can secure your accounts, reverse fraudulent transactions if possible, cooperate with the police and advise you on what to do next.

4. Seek support

The financial impact of scams is evident, but being the victim of fraud can take a serious toll on your mental health. Reaching out to family, friends or support groups such as Victim Support can help to alleviate distress and provide you with practical advice from people who have experienced similar situations.

You can also seek professional support. Financial advisers and lawyers can give you guidance on how to recover lost funds and deal with the aftermath of a scam. Many charities also offer free or low-cost services to scam victims.

5. Stay vigilant

Once you’ve addressed the immediate impacts of a financial scam it’s important to remain alert and protect yourself from future scams. Fraudsters are increasingly engaging in repeat scamming, stealing money from victims using one method before returning in the guise of an organisation offering to recover lost funds for a one-time fee.

Educate yourself on common fraud tactics and adopt good security practices, such as using strong, unique passwords and regularly monitoring your accounts. Be cautious when sharing personal information and verify the legitimacy of offers or payment requests.

Recovering from a financial scam is challenging but it is possible. Acting quickly, gathering evidence and reporting the scam to the police and your financial institutions gives you the greatest chance of recovering lost funds and preventing future attempts. Seeking support can help you overcome the impact of a scam on your emotional well-being and help you better protect yourself in the future.

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 Minturn27th August 2024