Know the signs and stay safe from the fraudsters
SCAMS have been rife during the pandemic – and criminals will exploit people’s struggles, whether financial or emotional, by promising quick-fixes that don’t exist.
It may be that someone is scouring the internet for a better return on their pensions and savings in the low interest rate environment. Or perhaps they’re lonely and seeking friendship or love. Whatever it is that someone is looking for, fraudsters will try to cash in by offering what looks like a simple solution.
The Financial Conduct Authority (FCA) is urging people to ‘flip the context’ if they are approached online – and imagine how they would react if such offers were being made in person instead.
The Scamsmart campaign encourages people to do their research before handing over any cash – and report frauds and dodgy firms, to help protect everyone.
People should also check the status of a firm by visiting the FCA register (register.fca.org.uk/s/) before making any financial decision.
Psychologist Dr Linda Papadopoulos is supporting Scamsmart.
Here, she talks us through some of the behavioural tactics criminals will deploy, and what to keep in mind to avoid being scammed...
We often think of criminals as threatening, but fraudsters may use subtle tactics to make us believe they’re on our side and helping us.
“We’re much more prone to respond to a friendly voice, that
Psychologist Dr Linda Papadopoulos talks to
about the ‘red flags’ we should look out for to stay one step ahead of the scammers doesn’t feel threatening, and of victims to commit to something course this is much easier to do small – and use this as a hinge to when it’s not face-to-face,” says Dr extract more information. Papadopoulos. “Initially, I might say to you:
Criminals will also use people’s ‘There are so many fraudsters out inclinations to respond positively to there, you just give me your first an authority figure. They may prename’. Then that feels safe, and then tend to be from government agenafter that I can build on that,” says cies or banks and other finance Dr Papadopoulos. companies. Dr Papadopoulos says scammers may also use symbols within communications, such as a coat of arms, to generate trust.
They may use particular language – such as ‘special deal’ – to make something appear to be an unmissable opportunity.
“They stir up positive emotions by mentioning things that we’re prone to like – large sums of money, or miracle cures for all your ills,” adds Dr Papadopoulos. “They try to get the potential victim to like them.”
Scammers will also flatter people, telling them, for example: “You’re smart, you understand finance, most people wouldn’t get this.”
Another tactic is to encourage
One way would-be criminals create a bond with a potential scam victim is by being good listeners
Criminals can be good listeners, who appear to empathise and may use the difficulties people have faced during the pandemic.
Dr Papadopoulos explains: “During Covid, you’ve had people who are feeling very lonely, so it’s that friendly voice calling, saying: ‘It’s tough right? I know, it’s been tough for me as well, having to work from home, so I’m calling trying to help people with their pension’. If someone is trying to empathise with you, that doesn’t sound threatening.”
With romance scams, fraudsters often offer “sob stories” for needing money urgently, making victims believe they have a real connection.
Dr Papadopoulos says: “They tell people, ‘I’m here to help but you have to act now.’ They use impulsivity so you are not going to question it.”
The FCA found pension holders could be nine times more likely to accept advice from someone online, than they would be from a stranger they met in person.
“Context is key,” explains Dr Papadopoulos. “What do I feel when I’m in my home? I feel safe. All of the visual cues are things that are familiar. So when speaking over the phone or online, all the things that would normally get my defences up, are not there.”
Over-confidence about being able to spot a scam can trip people up and make them less likely to do their research.
The FCA found despite more than two-thirds of pension holders claiming they were confident they could spot a potential pensions scam, only around a quarter realised a ‘free pension review’ was a sign of a scam. Just 40% knew to be wary of opportunities to transfer your pension.
People may also want to be polite, but Dr Papadopoulos says it’s “100%” fine to terminate conversations if you aren’t sure who you’re dealing with. She adds: “If they’re rushing you, that should raise huge alarm bells.”
Don’t miss this wonderful five-day break to enjoy the delights of Torquay and the charms of the beautiful English Riviera, including free excursions to explore idyllic Dartmouth, quaint Dawlish and handsome Teignmouth as well as historic Plymouth.
Return coach travel 4 nights at the 2-star Trecarn Hotel, Torquay with dinner & breakfast Entertainment every evening Free excursions to Dartmouth, Plymouth, Dawlish & Teignmouth