The 5 most common scams of 2023 and how to avoid them

Scams can start in many ways – a friend request on social media, a phone call out of the blue or the whisper of an investment opportunity.

Scammers are always on the lookout for victims who let their guard down long enough to be exploited, but they often use the same tactics – and make the same mistakes.

Read on to learn about five of the most common types of scams we’ve seen this year and for expert advice on how to avoid them.

1. Phishing scams

‘Phishing’ refers to scammers trying to lure you into obtaining your data, often in the form of emails or text messages imitation of a real company or government department.

The messages often ask you to click on a link to visit a website under the guise that something is wrong, such as an expiring subscription or to secure your account after a fraud attempt.

Phishing can also happen on social media, where fraudsters publish posts that link to dodgy websites. If you click on a link in a phishing message, you will often be taken to a fraudulent website where you will be asked to enter your name, address and bank details.

In early 2023, Action Fraud warned of an increase in reports of scammers impersonating McAfee (2,200 reports), BT (676) and Netflix (625). There were also 300 reports of phishing attempts involving diet pills.

Once you’ve given your details to a scammer, they can be used to scam you then and there, and to target you in the future. For example, information you enter on a dodgy website can be used by a fraudster to impersonate you as your bank. Since the scammer has some of your information, you may be inclined to trust the call as genuine.

HOW TO AVOID THE SCAM

Do not click on links in unsolicited emails and messages. Be on the lookout for email addresses or phone numbers that seem unclear. An email address that looks questionable may not include the brand’s name or may consist of random numbers and/or letters. If you are unsure of the origin of an email, contact the relevant company using details on its website.

2. Investment scams

These scams involve fraudsters trying to persuade you to join investment ‘opportunities’ with the promise of huge returns.

Data from UK Finance shows that £114m was lost in 2022 due to authorized push payment investments (where the victim is tricked into sending money to a criminal).

Investment scams usually fall into a few broad categories. More sophisticated scams may involve a fraudster grooming you over time to gain your trust, before pressuring you to part with your money.

Alternatively, you may be drawn in by an ad on social media that is a ‘endorsement’ of a famous person. Finally, some scammers take a more strawman approach – targeting victims with unsolicited emails, SMS and WhatsApp messages to invite them to participate in bogus investments, often cryptocurrency-related is.

Investment scammers want to make as much money out of you as they can, so once they think they’ve got you hooked, they’ll turn on the pressure. This can include showing you fake statements showing how well your investment is doing, then claiming you need to invest more before you can make a withdrawal.

Once you’ve caught the scam and stopped contact, you’ll need to be wary of recovery scams, where victims are contacted by ‘companies’ who promise they can recover their losses for them.

HOW TO AVOID THE SCAM

Don’t be drawn in by promises that seem too good to be true. Be suspicious of anyone who contacts you out of the blue with an ‘opportunity’. Check if the company is listed on the Financial Conduct Authority’s register before parting with any money.

3. Vishing scams

The word ‘wish’ combines ‘voice’ and ‘phishing’ and refers to fraud that takes place over the telephone. As with phishing, these scams often involve fraudsters impersonating a company to try to steal your personal or financial details.

Bank transfer scams (known as ‘authorized push payment fraud’) are one of the most dangerous types.

A fraudster calls you to impersonate a staff member of your bank. The caller may already have some of your details from a previous data breach. Often the scammer will tell you that your account has been compromised and encourage you to move money to a ‘secure’ account or give them remote access to your device so they can make the transfer.

In some cases, fraudsters even send fraudulent ‘verification’ text messages. These scams can take a devastating emotional and financial toll on their victims.

Other examples of vishing include scams that originate with a letter, email or text, asking you to call a phone number to update a subscription or account details, or to take advantage of an offer .

We previously reported on PayPal request money scam, where fraudsters send emails using the payment provider’s ‘request money’ feature to request payment for high-value items. The requests state that if you do not recognize the purchase, you must call a phone number.

Action Fraud issued an alert in March after receiving 275 reports of this particular scam.

HOW TO AVOID THE SCAM

Be wary of unsolicited calls pretending to be from a company or government agency. Do not disclose any personal or financial details over the phone unless you are 100% sure who you are talking to. If someone calls you and claims to be away from you. bank, hang up and call the number given on the back of your card.

4. Romance scams

Romance scams usually start on dating sites or apps. This usually involves the scammer forging a passionate connection with a potential victim, showering them with compliments and confiding in them over weeks or months.

Once they have taken care of their victim, the scammer will begin asking them to send money to a variety of made-up causes. Scammers can guilt trip victims by telling them they can’t trust anyone else or that they have no one else to turn to.

There are some variations. We’ve recently seen romance scammers target people on social media pages run by bereavement and mental health charity. This gives the fraudster the opportunity to specifically seek out people who are in particularly vulnerable situations.

Finally there is hybrid romance and investment scams. This involves the scammer grooming the victim before encouraging them to invest their money in a real estate or cryptocurrency platform controlled by the scammers.

It is difficult to determine the extent of losses to romance scams. Figures from UK Finance show that £31m was lost to romance scams in 2022, but the real figure is likely to be much higher as victims may feel too embarrassed to report the scam.

HOW TO AVOID THE SCAM

Be vigilant when talking to strangers online. If you develop an online relationship, talk to friends and family about it. They may spot inconsistencies or red flags – warning signs you didn’t notice. Red flags include attempts to quickly move conversations to private platforms and a refusal to meet in person. Use a reverse image search (a site where you can upload). an image to find matching images and/or the image source) to check if a profile image belongs to someone else or is known to be used by scammers. Stop contact if someone you’ve never met asks you for money.

5. Shopping scams

The latest British finance figures show buy scams – where you pay for an item you never receive – was the most common form of ‘authorised’ payment scam in 2022, with more than 117,000 reports.

These scams involve fraudsters tricking unsuspecting buyers into buying items through obscure websites, auction sites or via social media. Criminals often pose as sellers of high-value items such as cars, tech products and event tickets.

Fraudsters may offer items for below market value to try and lure victims. Earlier this year we reported on a online fake car dealer to con a reader out of thousands of pounds by offering a tempting deal on a used car via a Facebook ad. Scammers usually ask buyers to pay for items by bank transfer – less secure than using a payment service like PayPal.

HOW TO AVOID THE SCAM

Stick to tried-and-tested retailers whenever possible. If you’re tempted to buy an item from a company you haven’t heard of, do your research first. Signs include transactions that seem too good to be true and requests to pay for items using insecure or untraceable methods.

What to do if you have been scammed

If you fall victim to a scam, it is imperative that you act immediately.

If you have given away financial details, call your bank using the number on the back of your card and report the scam to Action Fraud. If you are in Scotland, notify Police Scotland by calling 101. Keep a close eye on your credit report for any suspicious credit applications.

If one of your online accounts has been compromised, change your password immediately.

How to report scams

If you see something that looks like a scam, report it.

Flag unclear emails to your provider and the government ([email protected]), report fake websites to the National Cyber ​​Security Center (NCSC) and forward scam texts to 7726.

By reporting scams, you may be able to prevent someone else from falling victim.