Financial scams are pervasive and a source of concern for many in the UK. They can affect individuals from all walks of life, and Citizens Advice notes that close to 9 million people were affected in some way between 2023 and 2024.
Being aware of the tactics used by scammers and staying vigilant is more important than ever. After all, the more you know, the better prepared you could be to handle potential scams and fraud if you are targeted in future.
Here are five of the UK’s most concerning financial scams and what you can do to stay safe.
1. Phishing emails and messages
These deceptive messages, often emails or texts, sometimes appear to come from legitimate organisations. They may urge you to click on a link that may even take you to fake websites that steal your personal information. This could include bank details, login information, or other sensitive data.
Cyber Magazine reports that over 75% of targeted cyberattacks start with an email and that phishing is the primary method for dangerous hacking techniques. To spot a phishing email, look for poor grammar, unusual URLs, strange email addresses, and a lack of contact information.
2. AI and fake information
Experian recently reported that fraud powered by Artificial Intelligence (AI) accounted for almost 34% of all fraud crimes in 2024. Scammers are constantly finding new and sophisticated ways to deceive their targets.
Imagine receiving a phone call from a loved one in distress, urgently needing financial assistance. The voice sounds exactly like your friend or family member, but it’s a fake. This is voice-cloning in action, and it allows criminals to mimic someone’s voice with alarming accuracy, often using publicly available audio. But if your son or daughter called you asking for money, particularly if they seemed upset, you’d likely try to help them as quickly as you could.
Here, it’s important to call them back on a known number to ensure the legitimacy of the call.
Other fraudsters may use AI to add a veneer of legitimacy to their scams, generating images of trusted celebrities, well-known business figures, or even entirely fictional personas. These images can be deceptively realistic and are designed to enhance the credibility of a scam website, investment opportunity, or social media profile.
3. Social media scams
Social media platforms can be rife with scams, from fake investment opportunities to romance scams. These scammers set up fake profiles on social media, messaging platforms, and other apps. They may pretend to be a friend or family member, someone interested in a relationship, or even a professional or governmental body.
Some of the more common tactics used by social media scammers include:
- Offering quick ways to make money
- Inviting you to enter a competition
- Providing you with a limited time offer
- Pretending to be a friend or family member in a personal emergency
Be wary of unsolicited investment offers and always conduct thorough research before committing any money.
4. QR code scams
You’ll have noticed the prevalence of QR codes since the Covid-19 pandemic, with many restaurants and shops asking customers to scan in and order their products using their phone.
QR code scams, sometimes called “quishing”, involve the creation of deceptive QR codes to trick users. These fake codes can lead to fraudulent websites, harmful apps, or even further phishing attacks.
For example, Age UK has recently received reports of large QR codes being placed over legitimate PayByPhone signage in areas across the UK. These fraudulent QR codes sometimes leak to a fake parking website that then asks for your bank details. You may find that, as a result, you’re suddenly paying for sizable subscriptions you didn’t knowingly sign up to.
A report from Which? confirms this, with some people saying they had found charges of up to £39.99 a month for unwanted subscriptions.
Watch out for signs of tampering and don’t use QR codes to download apps. Rather, use a verified app store instead. Furthermore, avoid QR codes in emails, as scammers are increasingly using QR codes to disguise malicious links, since many email security tools don’t always scan images.
5. Cryptocurrency scams
The volatile nature of cryptocurrency makes it attractive to scammers, so be cautious of unregulated cryptocurrency investments and promises of guaranteed returns.
Onfido reports that cryptocurrency-related fraud increased by 45% in 2023, exceeding $5.6 billion in value. These scams may include cryptocurrency investment scams, cryptojacking (where scammers use your computer to mine cryptocurrency) and fraudulent account creations.
Practical tips for staying safe
Watch out for red flags
Be aware of common warning signs of scams, such as:
- Unsolicited offers that appear out of the blue
- Pressure to make quick decisions
- Promises of unrealistic returns
- Requests for upfront payments
Pay attention to the language used in any communication as poor grammar and spelling are often red flags.
Be cautious when sharing personal information online
Be extremely careful about sharing your sensitive information online, particularly bank account details, credit card numbers, passwords, or your home address. Even sharing your exact date of birth on the wrong website could compromise your online safety.
Keep your virtual security systems up to date
Maintaining a robust digital defence system is often essential to protecting yourself online. Regularly updating your operating system, antivirus software, firewall, and web browsers can help with this. Consider enabling automatic updates to ensure you’re always as secure as you can be.
Trust your instincts
If something feels off, it probably is. Don’t dismiss that nagging feeling of unease.
Scammers are often skilled at manipulating emotions and creating a sense of urgency. If an offer or request seems too good to be true, or if you feel pressured or uncomfortable, take a step back and reevaluate the situation.
Verify the legitimacy of any financial opportunity
Conduct thorough research before committing to any investment or financial product.
You can use the Financial Conduct Authority’s (FCA) Financial Services Register to confirm if the individual or business is authorised to give financial advice or offer financial services. Because information can be falsified, it may not be helpful to rely solely on the credentials provided on an email or website, so the register can be particularly useful.
Stay informed
Financial scams and fraud tactics are always evolving, so it may help to ensure you’re always aware of the latest developments. Keeping yourself informed about trends, financial issues, and common scams could help you spot and avoid them.
That being said, no one is completely safe from fraud. If you’re ever in doubt about a so-called opportunity, talk to your financial adviser before committing to anything. And, if you feel you have already been successfully targeted, speak to your local police and report the case to Action Fraud too.
Get in touch
We’re here as a valuable resource for you and your money, always on hand to answer any questions you may have.
Please email info@doddwealthcare.co.uk or call 01228 530913 / 01768 864466 to learn more about how we can help.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Crypto assets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws.
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