Turn2us - to access benefits & grants.

Scams

Step 1: Understanding what a scam is

A scam is something that is designed to con you out of your money.

Unfortunately, there are a lot of scams around these days and the people behind them are becoming increasingly clever at making us fall for them.

Step 2: Identifying scams

The problem with scams is that they change all the time so it is difficult to keep on top of them. The most sophisticated ones are never brought to our attention until a lot of people have already fallen for them.

In general, what you need to look out for are:

• Emails trying to get bank or other personal details out of you. This is known as phishing. The emails look as if they come from real businesses and they try to con you into giving out your personal information. Phishing emails that pretend they are coming from banks are quite common. They try to get you to give out your personal details, such as PIN numbers, so they can get at your money.
• Investment scams. These try to get you to part with your money by investing in things like wine or paintings or land, which the scammer claims will give you better returns than investing in more conventional things like shares.
• Premium rate telephone numbers. These can play a part in many different sorts of scams. The idea is to get you to phone a telephone number and stay on the line for as long as possible. As the telephone number is charged at a premium rate, the longer you stay on the line the more money the scammer makes.
• Bogus charity collections. There are quite a few scams around that trick you into thinking you are donating your old clothes and household items to charity by leaving them in a sack on your doorstep. In fact, your donations are sold, with the scammers pocketing the proceeds themselves. As well as conning you, these scams take a legitimate source of income away from real, registered charities.
• Doorstep selling. It is common for someone to call at the door trying to sell something. Often this is part of a scam. If the salesperson is genuine they will show you identification and make it clear what they are selling. They also will not pressurise you or expect an on-the-spot decision and if you ask them to leave, they will do so. If you decide to buy, they will also give you information on ‘cooling-off periods’ that allow you to change your mind and your cancellation rights.
• HM Revenue and Customs scams. HMRC have reported that a lot of people have received emails informing them that they are due a tax rebate. It provides a click through link to a cloned replica of the HMRC website where the person is asked to provide their credit or debit card details. Fraudsters then try to take money from the account using the details provided. Victims risk having their bank accounts emptied and their personal details sold on to other organised criminal gangs. HMRC only ever contact customers due a tax refund in writing by post. They do not use telephone calls, emails or external companies in these circumstances. If you have received an email claiming to be from HMRC stating that you are entitled to a tax rebate, send it to phishing@hmrc.gsi.gov.uk before deleting it permanently. See the HMRC website for more information about and examples of these fraudulent emails (link opens in a new window).

Step 3: Avoiding scams

A lot of the time it is a matter of keeping a level head. If something looks too good to be true, it probably is. Always be wary of giving out your personal details to others. Check first that they are who they say they are and remember that your bank will never email you asking for your PIN number.

• If you register your telephone number with the Telephone Preference Service (link opens in a new window) it becomes illegal for companies to make unsolicited calls to your number. This may deter some scammers but it’s important to note that this service only covers UK organisations and it’s common for telephone scams to originate outside the UK
• The Consumer Direct website, which is run by the Office of Fair Trading, has a section dealing with scams (link opens in a new window). You can learn about different sorts of scams, play games to help you understand how they work and, if you have been the victim of a scam, report it 
• The Money Advice Service website has more information on scams (link opens in a new window)

Step 4: Identity theft

Identity theft is also an increasingly common problem for many people. This is where someone finds out personal details and uses them to set up bank accounts and other financial services or documents in your name.

London is the UK's identity fraud capital, according to research by Experian, published in March 2010.

Residents of some areas - including Kensington, Chelsea, Victoria and Liverpool Street -are almost four times more likely to fall victim than people living in the country.

Outside London, Salford (The Quays), Glasgow (Morrison Street) and Manchester (Liverpool STreet), the commuter belt and places where there are a high number of rental properties are also particularly vulnerable.

Although wealth directors and business owners were the most commonly targeted group in 2009, younger people aged between 18-24 make up a third of all victims. They may be easier targets for thieves because they often live in flats with communal halls and shared postal deliveries or move frequently.

The following resources provide further information and tips to help you protect your identity and what to do if you are the victim of identify theft:

• CIFAS (link opens in a new window), the UK's fraud prevention service, has information on its website
• identitytheft.org.uk (link opens in a new window) is a website produced through a collaboration between public and private organisations, such as the Home Office, Royal Mail and the Metropolitan Police, which is committed to stopping identity theft
• ID Guide (link opens in a new window), produced by Toynbee Hall, a community organisation, provides information on how to prove your identity.
• Good to know (link opens in a new window) - an resource produced by Citizens Advice in partnership with the search engine Google which provides information about how to be safer on the internet and manage the information you share online.

Last updated: 22 November 2011