All the tricks scammers use to steal your money
A major bank says it has seen an increase in scams over the past three months, with fraudsters mostly relying on purchase, impersonation and investment tactics to steal money
Financial scams against Brits are on the rise – and now major bank Barclays has revealed the three main ways fraudsters are targeting consumers.
The bank says it has recorded a 17% rise in scams over the past three months, and that other figures show a 70% increase in attempted fraud over the period.
Purchase Scams
Purchase scams, where people buy goods online which don’t exist or never arrive, accounted for over half (53%) of reported scams in Barclays data – with an average loss of £980.
Scammers create a perceived scarcity and therefore ‘value’ in what they are selling to motivate consumers to act quickly and not rely on their better judgment.
This might be advertising something as a ‘one-time offer’, a limited edition price or availability, or rushing us into buying something that ‘has’ to be bought now – even if you’ve never seen the product in real life”.
Barclays advice is to never be rushed and to read reviews of the site where you’re shopping.
If you have any concerns, or if you’re ever unsure, it’s always important to take the time to check before proceeding with a purchase.
If it’s a big-ticket item like a car, unless you’re buying directly through a well-known brand, it’s good practice to see it in person before spending any money.
Impersonation Scams
Barclays research found that over two thirds of Brits (64%) would be more likely to comply with a request if we believed it was coming from an institution we knew such as our bank, the Police or even the NHS.
Scammers will harness that sense of authority to instil fear in their victims – perhaps suggesting their bank account has been compromised, they are overdue a payment or that they will be fined if they do not pay the full amount – psychologically, many of us will take these at face-value if they’re coming from what we believe to be a reputable institution.
Investment Scams
Investment scams often account for the highest average value type of scam, which is why they’re such enticing options for fraudsters – with £15,788 lost on average to these types of scams in the last quarter.