Don’t fall victim to get-rich-quick fraud schemes
We’re all feeling the pinch... and for con artists that’s a golden opportunity. TRICIA PHILLIPS looks at ways to stave off the current surge in opportunistic scams
AS we all try to find the extra savings to balance our household budgets, and manage our finances through the cost-of-living crisis, unscrupulous scammers are using the opportunity to try and relieve us of our hard-earned cash.
The Office for National Statistics, the UK’s largest independent producer of data, recently found a 25% rise in fraud levels since before the pandemic.
There were some 4.5 million scam and fraud-related offences reported in the year to March 2022. Sadly, these statistics are likely to be just the tip of the iceberg and many more of us will either have received a scam notification or know someone who has. Others may not have found out they have been a victim of fraud yet as the scam is still in play.
According to financial giant Canada Life, around half of UK adults have or know someone who has received a suspicious communication in the last 12 months, which equals a staggering 27 million people across the UK.
As Andrew Tully, technical director at Canada Life, explains: “We are in the midst of a financial storm, with the cost-of-living crisis on one side and predatory fraudsters on the other, looking to make a quick buck from our financial insecurities. Please be scam aware, and don’t respond to unsolicited emails, texts or calls. Simply delete the communication or hang up.”
As the financial crisis unfolds, scammers are using sophisticated techniques to obtain your personal details and access your financial information. These socalled “hope” tactics often create the illusion of fake investment opportunities or other deals.
Scammers are even stooping as low as to encourage you to “click a link” to “claim” the winter fuel allowance or the £400 energy grant. To be clear, at no point do you need to claim any of these benefits, rebates or allowances. The Government has your details and payments will be made automatically.
And the size and scale of fraudster operations isn’t just targeted at one group of people. They will prey on anyone, and increasingly younger age groups are being targeted. According to research by online bank Marcus by Goldman Sachs, the under-34s are twice as likely to be scammed as those over the age of 35.
These younger age groups are being duped by increasingly sophisticated approaches and “get-rich-quick” cryptocurrency investment schemes.
Recent figures from Canada Life suggest the average loss to scams was around £207, with this amount almost doubling to £361 for those aged 18-34, compared to £112 for those aged 55 plus. These are just averages, and people could be losing much more.
But right now, any loss will be felt particularly keenly by all of us, and remember, it is highly unlikely you’ll receive a penny back. So, it’s really important to be scam aware and keep an eye out for family members too.
A recent City of London Police awareness campaign highlighted the huge rise in investment fraud. The national lead police force for fraud revealed £891million was lost to scammers in the 2021/22 financial year, with £596million lost the year before.
Detective Chief Inspector Suzanne Ferris from the City of London Police explains: “With the cost-of-living crisis at the forefront of everyone’s mind, there is the potential that more people will fall victim to this devastating type of fraud as they try to get quick returns to pay bills.
“While criminals are now using social media to target people with fake investment opportunities, the “typical” cold-calling tactics haven’t gone, so we must not be complacent and remain alert to these too.”
Andrew Tully says scammers are a scourge of our society and continue to come up with devious ways to come between us and our hard-earned cash. He warns that in a cost-of-living crisis it may be all too tempting to try and make a quick buck or be attracted to market-beating investment returns. Run a mile, these “get-rich-quick” schemes will only pour more financial pain on those who fall prey to the thieves and con men.
Andrew adds: “With crypto scams becoming more common, perhaps it’s unsurprising that younger generations are being caught out. Not only are 18-34 year olds more likely to fall victim to a scam than older people, but they are also set to lose more.
“It might be the case of ‘bet big, win big.’ But sadly, the reality is ‘bet big, lose big.’ Scammers are often already heading for the door before you realise what is happening.”
Crooks have their eye on the pension savings of older people – they make for rich and sometimes easy pickings. With many families struggling to make ends meet, and as the cost-of-living squeeze tightens, offering easy access to your pension might seem the perfect opportunity to dig yourself out of trouble.
Andrew adds: “The reality is you can’t access your pension savings before the age of 55, so it’s likely it will be scammers.”
We are in the midst of a financial storm, with the cost-of-living crisis on one side and predatory fraudsters on the other, looking to make a quick buck from our financial insecurities. Please be scam aware, and don’t respond to unsolicited emails, texts or calls... delete the communication or hang up