Scams & How To Avoid Them

Scams & How To Avoid Them

The Size of the Fraud Problem

Almost half of all crime in the UK is fraud and most of that happens online. There was over £2 billion of fraud reported in 2024 and that is likely to underestimate the extend of the problem, as lot of fraud goes unreported.

If you are going to be a victim of crime it is likely to be online.

It is estimated that 67% of fraud reported in the UK is cyber-enabled, with authorised push payment frauds continuing to be driven online platforms such as Facebook.

Students Targeted For Fraud

Students and those going back to university are being warned about the top fraud types affecting young people, as new data reveals almost 69,000 reports were received from people aged between 11 and 29, losing a total of £143.7 million in 2023. [source: The following are quotes and advice from Action Fraud]

What are the top fraud types to look out for as a student?

Investment fraud: with a total loss of £29,509,631

Criminals will target students looking to make quick-wins with available cash through cryptocurrency or schemes with a promise of high return investment. They are usually easily targeted through social media and online where many investment schemes operate.

Fake job fraud: with a total loss of £149,719

Students looking for job opportunities can be targeted by fraudulent adverts aimed at stealing personal information or money. Students might be asked for an upfront payment for a fake consultation or extra help finding a job, but the fraudster does not deliver.

Rental fraud: with a total loss of £4,270,255

Rental fraudsters often target students looking for university accommodation. Fraudsters ask students to pay fees in advance without seeing a property first, and as a result they lose money as well as somewhere to live.

Online shopping fraud: with a total loss of £9,199,951

Often fraudsters will create fake websites or replicate legitimate online stores to trick customers into providing their personal and financial information for a purchase that isn’t real. This can lead to those details being used for criminal activity.

Ticket fraud: with a total loss of £1,053,493

Fraudsters will use opportunities, like highly in-demand events, to target students by selling fake tickets. Students looking for cheap deals for freshers’ events can also be targets.

Can I Get a Refund When I Have Been Defrauded

Push Payment Fraud

One of the biggest types of fraud is when someone calls pretending to be from your bank and says you are a victim of fraud and to stop you losing the money - you need to transfer the money to what they call "a sfe account.' But they are not who they say they are and you are sending money to a criminal.

They may say -

• You need to act quickly

• You can see it really is the bank calling as the number is on your screen (it might be, but that is a scam and it isn't the bank calling)

This type of fraud is called Authorised Push Payments (APP), also known as a bank transfer scam, and it occurs when you send money from your bank account to one belonging to a scammer.

There Is Good News Though

There has relartively recently been a change in the law which gives you a lot of protection.

The banks generally have to refund you money you lose in this type of scam, as long as you have behaved reasonably, although there are some limits and restrictions.

The maximum amount of money you can claim back is £85,000.

The rules outline that your payment provider should reimburse all in-scope customers who fall victim to APP fraud in most cases, and within five UK business days

Credit Card Fraud

If you've paid for goods or services with a credit or debit card, you have greater protection if things go wrong under Section 75 of the Consumer Credit Ac.

For example, if you have paid for goods or services and it turned out these were either never available or the 'seller' disappeared or just never delivered the goods or service and stop answering your emails.

For Section 75 to apply the item or service you bought must have cost more than £100 and not more than £30,000.

If the sum involved is less than £100 - try getting it back by quoting the protevtion offered by 'charge back protection.'

Debit Card Fraud

If you used a debit card, you may be able to ask your bank to get your money back through what's called 'chargeback.'

Chargeback is not a legal right, so it is not as stong as the protection offered by credit card payments but most banks will subscribe to the practice.

PayPal Fraud

If the thief took payment for an item through PayPal but failed to send it, you should be covered by PayPal Buyer Protection. However, there are some exceptions and time limits on lodging a claim.

However you may think you have paid via PayPal but have in fact been using a fake PayPal payment page. As PayPal isn't part of the transaction, you won't be able to claim your money back via PayPal Buyer Protection.

The Tricks Thieves Use

False urgency

Are you being told you have a limited time to respond? If this is accompanied by threats of penalties, fines or other negative consequences, you should be suspicious. The same applies if you’re being promised a reward or benefit for a limited time only. Anyone who tries to rush you into a decision should NOT be trusted.

Emotion

Do they use language that makes you feel fearful, hopeful or curious? Perhaps they’ll tug at your heartstrings, or appeal to your generous nature

Scarcity

Are you being offered something that’s in short supply or not widely available? Tickets for a concert? An amazing holiday deal? Criminals will often use fear of missing out on a good deal or opportunity to make you respond quickly.

Current events

Does the message seem timely? Criminals often exploit current news stories, big events or specific times of year (like the tax reporting deadline) to make their approach seem more relevant and genuine.

Warning Signs To Watch Out For

Be very wary if anyone does any of the following:

• asks you to share a one-time-passcode

• asks for your PIN or password in full

• asks for payment before sending a prize or lost delivery

• asks for a direct transfer of cash or cryptocurrency

• asks you to move away from an official payment site to make a direct payment

• asks for money before you’ve met in person

• asks you to click on suspicious links

Tell Your Bank

If you’ve lost money or you think a fraudster has access to your bank account, tell your bank or payment service provider as soon as possible, so they can protect your account and help you get your money back.

Always contact them directly using a known email or phone number, such as the ones shown on their website or the back of your card.

NEVER MISS OUT

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Please remember everything on this site is journalist commentary and is not financial advice or guidance in anyway.

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