How to Avoid Financial Fraud in Cheltenham & Gloucestershire

We have to protect ourselves from Scammers and Fraudsters

A scam a few years ago made me much more cautious. In today’s fast-paced world, with one-click purchases and constant offers, it’s easy to become a target for fraud.

The 80s, when I left school, were a stark contrast—no mobile phones, only basic computers, and the internet didn’t exist yet (Sir Tim Berners-Lee launched it in 1994 from Southampton). In some ways, I miss the days when you had to visit a shop in person to make a purchase or speak face-to-face with someone to arrange a service; you could look them in the eye and trust them.

An individual stole my personal information and withdrew money from my account. Fortunately, NatWest noticed the unusual activity, stopped the scam, flagged it as suspicious, and refunded the money. However, the experience left me feeling unsettled.

How did they get my details? NatWest suspected that the breach happened through The Trainline, where I regularly booked tickets online. The key takeaway: never save your card details to a website.

Unfortunately, scammers are becoming more sophisticated and prey heavily on the vulnerable in our society, especially family and friends who might not always be aware of the latest fraud tactics.

If an offer sounds too good to be true, it often is, and this is one of the clearest signs of fraud. Here are some common financial scams, warning signs, and ways to stay protected:

Common Financial Scams in the UK

From phishing emails to identity theft, here are some of the most prevalent scams affecting UK residents, including those in Cheltenham and Gloucestershire.

• Phishing Scams: Fake emails, text messages, or websites designed to steal personal details. We’ve all encountered these at some stage. Nearly 80% of UK businesses experienced phishing attempts in the past year. A notable case was TV personality Barbara Corcoran, who lost £400k due to a scam involving her bookkeeper.
• Banking and Card Fraud: In 2022, losses from card and online banking fraud reached £556m. This includes contactless payment fraud, over-the-counter fraud, and Authorised Push Payment (APP) fraud, where fraudsters trick victims into sending them money.
• Identity Theft: Over 174,000 cases of identity fraud were reported last year, with account takeover fraud increasing by 42%. Notably, scammers even used the name of actor Sir Ian McKellen to set up a fake charity.
• Ponzi and Pyramid Schemes: Fraudsters gain trust and persuade victims to invest in fraudulent schemes. Footballer Alan Shearer fell victim to a £9m scam claiming to offer high returns on pension investments.

The Role of Technology in Financial Fraud

While technology has made banking more accessible, it has also created new vulnerabilities:

• Smishing: Fraudsters send fake messages from institutions like HMRC or delivery companies, aiming to steal sensitive information.
• Cryptocurrency Scams: In 2022, crypto-related fraud surged by 40% as scammers took advantage of the public’s lack of understanding of digital currencies.
• Deepfake Fraud: Scammers have begun using AI to simulate voices or faces, defrauding companies of significant sums. A deepfake audio call mimicking his boss tricked the MD of a UK energy company, leading to a £200k loss.

Red Flags and How to Spot a Scam

Be alert for these warning signs:

• Unsolicited Emails or Messages: Scammers often contact you out of the blue, asking for financial information.
• Too-Good-to-Be-True Opportunities: Be cautious of investment schemes promising unusually high returns.
• Urgency and Pressure: Scammers often rush you to make a decision, whether over the phone, through telephone calls, or online, which is a strong sign of a scam.

Before making any financial decisions, always verify the legitimacy of the company or individual by checking reviews, visiting official websites, or consulting The Financial Conduct Authority’s (FCA) register of regulated individuals or businesses.

How to Protect Yourself from Scams

There are several proactive steps you can take to reduce your risk of falling victim to a financial scam:

• Change your passwords periodically: and keep them safe away from your PC.
• Enable Two-Factor Authentication: Many banks now offer this added layer of security for online accounts.
• Monitor Your Financial Statements: Review your statements on a regular basis for any unusual activity.
• Keep an eye on vulnerable family and friends: Fraudsters pray on the vulnerable. Some of my family members fall into this category. I have encouraged them to speak to me before committing to decisions or, if they have suspicions, phone calls or emails. I have educated them and warned them, but it can still happen.
• Seek advice from a regulated Financial Adviser or consult the FCA This can help protect you from fraudulent schemes.

Remember, the Cotswolds District Council and other local authorities also have resources available to guide you through preventing scams.

Working with a registered financial adviser can help you avoid fraudulent schemes. The Financial Conduct Authority (FCA) offers a register where you can verify the legitimacy of any financial service provider.

The Future of Fraud Prevention

As technology evolves, so do the methods scammers use. While advances in Artificial Intelligence (AI), machine learning, and biometric authentication offer more security, they also present new challenges in the long-term fight against fraud.

Stay Informed, Stay Safe, and Avoid Rush Decisions.

By staying vigilant, verifying suspicious claims, and using the latest security tools, you can safeguard your finances. If you suspect a scam, you should report it to Action Fraud, the UK’s national fraud reporting service.

Don’t rush; there is no need to rush a financial or purchase decision. Make sure the advice you are receiving is from a credible and recognised source.

I remain ever vigilant, and if you are in any doubt about a product or service, speak to the Piercefield Oliver Team.

Get in Touch with Us

If I can help, please feel free to get in touch via our contact page, email me here: louise.oliver@piercefield.co.uk or pick up the phone and call 01242 399344.