Financial scams are an ever-growing problem in the UK. In 2023 alone, more than £1.17 billion was stolen, according to UK Finance. The figures for 2024 suggest things aren’t improving, with over £570 million lost in just the first six months of the year.

Most of us know someone who has been affected – if not directly, then through a friend or family member. Unfortunately, fraudsters are becoming increasingly sophisticated, using technology and psychological manipulation to part people from their money.

So how can you protect yourself and your loved ones?

Know the Methods

Understanding how scams work is the first step to avoiding them. UK Finance highlights two major types of financial fraud:

• Unauthorised Fraud – This happens when a scammer gains access to your bank details or payment information and makes unauthorised transactions. It includes card fraud, remote banking fraud, and stolen cheque fraud. In the first half of 2024, this type of fraud accounted for £358 million in losses.
• Authorised Push Payment (APP) Fraud – This occurs when a scammer tricks a victim into willingly transferring money to them. It’s often more difficult to recover funds from this kind of fraud because the victim has authorised the payment themselves. APP fraud cost UK residents £213.7 million in the first half of 2024, with only 59% of stolen money refunded.

Unlike unauthorised fraud, which banks are usually quick to refund, APP fraud is harder to reverse, making prevention all the more important.

How to Protect Yourself

While it’s impossible to completely eliminate the risk of fraud, there are key steps you can take to reduce your chances of falling victim.

Unauthorised Fraud – Keep Your Details Safe

This type of fraud is harder to control because it often involves stolen card details, lost cards, or hacking. That said, you can still take precautions:

• Keep your card details secure and avoid saving them on websites you don’t fully trust.
• Regularly monitor your bank statements for suspicious transactions.
• Use secure payment methods and avoid entering card details on unverified websites.
• Enable two-factor authentication on banking apps for extra security.

Authorised Push Payment (APP) Fraud – Don’t Be Fooled

APP fraud is more psychological – fraudsters rely on manipulation and deception to convince victims to send them money willingly. They might pose as a trusted person, company, or government body and create a sense of urgency.

Some of the most common APP scams include:

• “Hey Mum/Hey Dad” Texts – A scammer pretends to be your child texting from a “new number” and urgently asks for money.
• Romance Scams – Fraudsters form online relationships before asking for money.
• Phishing Emails and Calls – Emails, phone calls, or texts that appear to be from your bank or HMRC, asking for your details or payments.
• Investment Scams – Promises of high returns from cryptocurrency or property investments that don’t exist.

If you’re ever unsure, take a step back before transferring money. Banks and legitimate companies will never pressure you to make an urgent payment.

10 Golden Rules to Avoid Scams

The Metropolitan Police has shared ten simple but effective rules to help protect against fraud:

1. Be suspicious of any deal that sounds too good to be true.
2. Don’t agree to anything immediately – always take time to think.
3. Check credentials before handing over money or signing anything.
4. Never send money to someone you don’t know or trust.
5. Keep banking and personal details private.
6. Always log into websites directly – never click on email links.
7. Don’t rely on testimonials – look for independent evidence of a company’s success.
8. Get legal or financial advice before making big financial commitments.
9. Report scams as soon as you spot them.
10. Don’t be embarrassed – scammers are clever. Reporting fraud helps protect others too.

What to Do If You’ve Been Targeted

If you think you’ve been scammed or nearly scammed, don’t hesitate to report it. You can contact:

• Your bank – They may be able to stop the transaction or recover your money.
• Action Fraud (0300 123 2040) – The UK’s national fraud reporting centre.
• Citizens Advice Scams Action – For free guidance on what to do next.

If you have any concerns about fraud protection or want to discuss extra security measures, don’t hesitate to seek professional advice. The more aware we all are, the harder we make it for scammers to succeed.