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.
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 on its website 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 Made Clear 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) website produced through a
collaboration between public and private organisations, such as the
Home Office, Royal Mail and the metropolitan Police, 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.
Last updated: 27 April 2010
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