Be Scam Savvy
Fraudulent activity remains at an all-time high, with scammers having developed more sophisticated systems and means of utilising technology following the pandemic, they continue to use current events such as the cost of living and energy crisis as opportunities to strike and take advantage of the vulnerable.
At every stage of the Financing planning process and services we provide at BFP, we look at how we can best meet the needs of our vulnerable clients and are passionate about providing the best possible outcomes for our clients. Here we set out some common scams and what you or your loved ones can do to avoid them.
Telephone scams
Older people are particularly at risk of house phone scams and, unfortunately, it’s one we see happen time and time again with our own clients. These “cold calls” most often take the form of someone purporting to be from a reputable organisation like a bank or HMRC. They can convince you that you owe money, your card has been cloned, your account is at risk, and even ask for your card or other personal details.
What to do:
Remember that legitimate companies you deal with will never contact you and ask you to divulge passwords, pin numbers or account details. If this happens, put the phone down straightaway.
The Telephone Preference Service, the UK's only official 'DoNotCall' register for landline and mobile numbers, can drastically reduce the number of unsolicited calls you receive. Register for free at tpsonline.org.uk.
Ask your landline supplier if they offer call blocking services and if they don’t, consider buying a call blocker that will screen nuisance numbers.
If you’re concerned, call the organisation they claim to be from directly. Find the number yourself – don’t use the one you were called from.
Energy Scams
With energy prices soaring and, as a result, increased government initiatives available and various advice in the media, it's easy to get confused. Scammers can be very convincing and, to make matters worse, energy firms can send legitimate emails that occasionally look like scams.
What to do:
Never click on a link that claims to be a way of claiming money. Any rebate you’re owed will be applied directly to your bill or by way of a voucher if you have a prepayment meter.
Be wary of companies, products or new ‘devices’ claiming to lower energy costs in your home. If you want to undertake work to improve the energy efficiency of your home, get recommendations from friends or go to the relevant trade association’s website.
Don’t be afraid to call your energy supplier directly, using the number on its website or your bill, to check any correspondence you’ve received.
Pension and Investment scams
These scams can be the most devastating, with many victims losing their life savings and entire pension funds. It’s really important to be vigilant and wary about anyone who contacts you out of the blue and starts offering high investment returns, loans or cashback opportunities. A popular one at the moment is ‘Green’ fund scams following the rise in popularity of sustainability-linked products which invest in areas like renewable energy, forestry. etc
Red flags to look out for: an offer of being able to get at your cash before age 55; suggesting that you move all your money into a single investment; a courier being sent to your door with urgent paperwork to be signed; a firm only having a PO box address and mobile phone number as their contact details. Typically, they will also put time pressure on you to get you to commit.
Pension cold-calling is now illegal and should be reported to the Information Commissioner’s Office on 0303 123 1113.
ALWAYS check the Financial Conduct Authority’s register of companies and individuals offering financial services. They also have a helpful ‘Warning List’ which will help you in ascertaining if an “opportunity” could be a scam: visit https://www.fca.org.uk/scamsmart
Scams are increasingly sophisticated. Fraudsters can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing. We are always on alert when it comes to the latest scams that are circulating and regularly notify our clients of this via email and social media. Always be vigilant, do your research, take your time and consult others and remember that if the opportunity seems too good to be true, it probably is.
