The UK’s Financial Ombudsman Service predicts it will receive over 37,000 fraud and scams complaints in the coming year – so just how are the crooks targeting today’s savers… and how can we make sure we aren’t scammed?
A new report from the Financial Ombudsman says that they are expecting to receive more than 37,000 fraud and scams complaints in the coming financial year – an increase on the 33,000 fraud and scams cases forecast for this financial year.
The most common complaints, they say, are likely to involve authorised push payment (APP) scams, cryptocurrency fraud and “safe account” scams – underlining the evolving complexity of these cases and the sophistication of fraudsters.
Abby Thomas, Chief Executive and Chief Ombudsman said: “It’s concerning to see high levels of fraud and scams cases continue to come to our service. People can feel embarrassed to have fallen victim to a fraud or scam, but these crimes can be complex and incredibly convincing, and nobody should be afraid to come forward.
“No matter how difficult a case may be, people can come with confidence to our free, independent service and we’ll investigate their complaint.”
So what do these scams and frauds look like?
“Authorised push payment” (APP) scams are where the fraudster tricks a victim into willingly transferring money to their account by pretending to be a credible, legitimate entity – like a bank, police officer, or company. They will often do this through phone calls, emails, or text messages. This is considered a “confidence” scam as it relies on the victim believing the scammer’s fabricated story
Cryptocurrency fraud refers to any activity where the perpetrator uses the cryptocurrency market to extract money from people, often by promising unrealistic returns, creating fake cryptocurrencies, or manipulating market prices.
It can include scams like “pump and dump” schemes, where the price of a cryptocurrency is hyped up and its value artificially inflated. The fraudster then quickly sells their holdings… leaving investors nursing losses.
Fake ICOs (Initial Coin Offerings) are an unregulated means by which funds are raised for a new cryptocurrency venture – usually offering an unrealistic rate of return.
Phishing attacks involve sending fraudulent emails or messages to trick people to give them access to their cryptocurrency wallet.
Fake platforms and identities are where fraudsters will create a credible “front” to lure investors – such as creating fake websites or social media accounts… often impersonating legitimate companies or celebrities.
The overarching message to avoid being scammed is to always be wary: never immediately accept emails, phone calls or messages on face value; and beware of high-pressure selling tactics and unfeasibly optimistic returns: if something sounds too good to be true, then it probably is
Are YOU on track for a comfortable retirement?
Whatever target you are setting yourself as a retirement income, you can see at a glance if you are on course to achieve that with the RetireEasy LifePlan.
By feeding in your key data, the amount you could safely withdraw each year is presented in easy-to-read charts, enabling you to make informed decisions about your future savings and retirement plans.
If you want to try out different scenarios, now or into the future (such as delaying your retirement, taking out a lifetime mortgage or receiving an inheritance at some point) then it really couldn’t be easier using a tool which offers you professional-quality analysis for just a few pounds a month.