Buying goods and services
Purchase scams happen when you’re paying for an item or service. These items are typically advertised on social media or other online marketplaces. In some cases they’re on legitimate-looking websites that have actually been set up by fraudsters. After you make a payment, the item doesn't arrive or the service doesn't happen - but you can no longer contact the seller and your money is lost.
Typically, these scams:
- seem too good to be true - because they probably are
- have 'limited availability' or are a 'special offer' to encourage you to act before you have time to think it through
- persuade you to send money before receiving goods
- ask you to send money via bank transfer rather than using normal ways to pay
- use safe sites when shopping online
- use safe ways to pay, such as your debit or credit card
- check the returns and cancellations policy
- research the retailer online to make sure they’re legitimate
- stop and think - would you be willing to send cash in the post for an item you've ordered?
- research and check the validity of the item before agreeing to pay via other means
- consider approaching an independent professional to authenticate the goods or services you are purchasing
In summary
Fraudsters can offer goods and services that appear to be genuine, at very competitive prices. They will specifically ask you to pay by bank transfer, rather than using a debit or credit card which will provide you with more protection against fraud. Only pay by bank transfer if you're sure the goods, service, person or business is genuine. Double check where you’re sending the money by contacting them in person or using a phone number you have verified independently. Remember that fraudsters can also set up legitimate looking websites. We may not be able to recover your payment if it turns out to be fraudulent.
Fraudsters can pretend to be your friends or family by hacking or spoofing their social media profile. They may try to trick you into sending money to them, or to convince you that you’ve begun an online relationship on social media or dating sites.
Fraudsters may also ask you to send money to genuine friends and family members for safekeeping purposes.
Important:
The police, your bank or other trusted organisations (for example HMRC) will never contact you to ask them to transfer funds to friends and family for safekeeping, to help catch a criminal or to pay an outstanding tax bill.
Romance Scams
This type of fraud begins with a fast-moving, online relationship. Fraudsters try to lower your suspicions by appealing to your compassionate or romantic side, and then ask for money. They’ll go to great lengths to build rapport and form an emotional bond, and may even send you small gifts. They’ll often claim to need money for urgent medical or travel expenses, to book a trip to the UK to visit you or because they’re having problems accessing funds held elsewhere. To avoid falling victim to one of these scams, never send money to someone you’ve only met online. Don’t agree to accept money from them to send on their behalf, as this could be the proceeds of crime.
Remember the following:
- never make a payment to friends or family if you’ve been asked to by someone claiming to be your bank, the police or another trusted organisation such as HMRC
- if someone claiming to be a friend or a family member has contacted you on social media, get in touch with them on a known phone number
- stop and think. Has anyone asked you not to speak to your bank or tell anybody else about the payment?
- have you met someone online who’s claiming to need funds for medical or travel purposes?
- never send money to someone you’ve only met online
In summary
Fraudsters can try to get to know you through social media and dating sites. They may build up a relationship with you over time, gaining your trust before asking you to send money to them to invest in a new business or to help with an emergency like travel expenses or medical fees.
They may also impersonate a genuine friend or family member on social media. Talk to a different family member or friend before sending any money. We may not be able to recover your payment if it turns out to be fraudulent.
Fraudsters can hack your email account and monitor it for any ongoing invoices or payments. They might tell you the bank details for your payment have changed and give you new details to send your payments to. This could be a regular payment to your solicitor, a payment to a contractor for home improvements, or even a household bill. When payments are due, they send their own email that looks and feels like a genuine message from a company. This is known as a payment diversion scam. If you receive an email like this, always contact the company you’re making a payment to, using a number you know is genuine.
Remember to:
- stop and think - do not act immediately
- look out for any grammatical errors in the email or change in content or formatting compared with any previous ones
- examine the email address to make sure it’s from the expected company or person
you must contact the company on an independently verified phone number to check that the request is genuine
In summary
Fraudsters can pose as a genuine business. If they send you an unexpected bill or an invoice with new account details, it could be a scam. You must contact the company using an official and independently verified phone number before you make the payment. We may not be able to recover your payment if it turns out to be fraudulent.
Investment and pension scams
Fraudsters may contact you to offer investment opportunities which may promise guaranteed or very high returns.
They often cold call you or may approach you on social media, using:
- false testimonials
- fake celebrity endorsements
- spoof websites
- fake companies with similar names to those of genuine investment organisations
They will often clone genuine investment company names to make the scam appear genuine.
They may use real current events that are in the news to make the opportunity seem realistic. For example, they may offer investment opportunities in bitcoin and other cryptocurrencies, sometimes offering guaranteed returns.
They can usually provide convincing marketing materials or documentation to gain your trust. They may initially make payments back to you to convince you to invest more.
Fraudsters also claim they can unlock pension funds by moving them from an existing scheme to a new one, allowing early access to benefits before the legal age of 55. They will ask you not to tell your pension provider exactly why you need to withdraw the funds.
Remember to:
- check the Financial Services Register This link will open in a new window to confirm the company is authorised and to look for verified contact details
- conduct your research – if you’re investing in bitcoin or another cryptocurrency, make sure you understand the offer and how cryptocurrency investment and trading works
- contact the company on a number or email address you know is genuine, and confirm that the person you’re dealing with is a legitimate representative of their firm
- be suspicious if you are offered guaranteed returns
- seek advice from a financial adviser
You can visit the Cloned Firms page This link will open in a new window on the FCA website for guidance on how to further protect yourself from the threat of cloned company names
The FCA website also has a list of known scam companies and advice on how to avoid investment scams – visit the FCA Warning List This link will open in a new window to search for the firm or company you are dealing with
In summary
Fraudsters can be persuasive offering you what appears to be a genuine investment or pension opportunity with high or guaranteed returns. Fraudsters can pressure you to invest your savings or transfer your current pension to a new scheme. This investment could be a scam. Check the company is authorised by the Financial Conduct Authority (FCA) before making a payment. You can check if they are a genuine company on the FCA website. This link will open in a new window You must double check where you’re sending the money to by contacting the company in person, using a number you have independently verified and confirming that the person you have been in contact with is a genuine representative of their firm. Remember that criminals can set up legitimate looking websites. We may not be able to recover your payment if it turns out to be fraudulent.
Large purchases
Fraudsters can hack and monitor your email account. They may tell you the bank details for your payment have changed and give you new details to send your payments to. This could be if you’re in buying a property, car or holiday, for example.
There are also many fake websites, online adverts, emails, social media posts and texts that promise good offers on cars, holidays and travel arrangements which are actually fake. Either the item or holiday doesn’t exist – or it does exist, but has been sold to you by a criminal.
You might not realise you’ve been scammed until you arrive to collect the item, only to find that it doesn’t exist. With holidays, the flight tickets don’t arrive, or you turn up at the resort, airport or cruise terminal only to find you’ve lost your money.
Whether it’s a short break or a dream holiday, you can find out more about how to avoid this type of scam by checking out Get Safe Online This link will open in a new window.
Remember to:
- stop and think - do not act immediately
- conduct your own research online before proceeding
- beware of false websites or reviews
- ask to see the item before proceeding
- if contacted via email, look out for any grammatical errors or change in content or formatting compared with any previous ones
- examine the email address to make sure it’s from the expected company or person
- if you’ve made previous payments to the genuine company or person, check the account details haven’t changed
- if buying from a company, you must contact them using a phone number you know is genuine before you make the payment
In summary
Fraudsters can offer goods and services at very competitive prices. They may advertise these goods and services on fake websites, or through fake adverts on social media or other online marketplaces. They may specifically ask you to pay by bank transfer, rather than using a debit or credit card which will provide you with more protection against fraud. Double check where you’re sending the money by contacting them in person, using a phone number you have verified independently. We may not be able to recover your payment if it turns out to be fraudulent.
Unexpected requests from your bank, police or other trusted organisations
The police, your bank or other government agencies or trusted organisations will never ask you to move funds to another account in your name, or to your friends or family
If you’re asked to do this, do not comply and report the fraud to us on 03457 404 404.
These scams usually happen over the phone or via text message. Fraudsters contact you, claiming to be a representative of the bank, the police or an organisation, such as HMRC
Fraudsters try to convince you to transfer money. They may say it’s to settle a fine, cancel a refund, prevent fraud or safeguard money
Criminals may also try to convince you to make cash withdrawals which may later be collected or stolen by them
If you’ve received a request like this, stop. This is a scam.
- do not make this payment
- report the fraud to us on 03457 404 404
In summary
The police, your bank or other government agencies or trusted organisations will never request a payment to be made to them, an account held elsewhere in your own name, or to somebody else that you know in order to safeguard money, prevent fraud or to settle a fine or pay a tax bill. They will also never ask you to transfer money in order to help them catch a criminal. It is important that you do not make the payment and contact the Police or bank directly, on a trusted and verified number, or in person to report this.