Stay Informed, Stay Protected

Understanding DifferentTypes of Scams

Knowledge is your best defence against fraud. Learn how scammers operate, recognise the warning signs, and protect yourself and your loved ones.

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£1.2B+

Lost to scams in UK (2023)

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300K+

Reported fraud cases yearly

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78%

Scams start online

£90M+

Recovered by NexClaim

Task Scams

Work from home jobs that ask for money

Task scams, also known as job or employment scams, prey on people looking for flexible work-from-home opportunities. Scammers pose as legitimate companies offering easy money for simple tasks like liking social media posts, watching videos, or completing surveys.

How This Scam Works

  1. 1You receive an unsolicited message on WhatsApp, Telegram, or social media about a 'job opportunity'
  2. 2The 'recruiter' promises easy money for simple online tasks (£50-£500+ per day)
  3. 3You're asked to complete initial tasks and may receive small payments to build trust
  4. 4Eventually, you're asked to 'invest' or pay fees to unlock higher-paying tasks
  5. 5Once you pay, the scammers disappear or demand more money

Warning Signs

  • Unsolicited job offers via messaging apps
  • Promises of unrealistic earnings for minimal work
  • Requests for upfront payments or 'investments'
  • Pressure to act quickly or recruit others
  • Vague company details or unprofessional communication

How to Protect Yourself

  • Never pay money to get a job - legitimate employers don't charge fees
  • Research the company thoroughly before engaging
  • Be skeptical of jobs that seem too good to be true
  • Don't share personal or banking information with strangers
  • Report suspicious job offers to Action Fraud

📖Real-Life Example

"A victim was contacted on WhatsApp about 'liking YouTube videos' for £5 each. After earning £30 in the first day, they were told to 'invest' £200 to access premium tasks. They lost £2,000 before realizing it was a scam."

Unauthorised Transaction Scams

When transactions are made without your consent

Unauthorised transaction fraud occurs when criminals access your bank account or card details and make payments without your knowledge or consent. This can happen through data breaches, skimming devices, phishing attacks, or malware.

How This Scam Works

  1. 1Criminals obtain your card or account details through various methods
  2. 2They may use phishing emails, fake websites, or data breaches
  3. 3Card skimmers at ATMs or payment terminals capture your information
  4. 4Malware on your device records your banking credentials
  5. 5Transactions are made without your knowledge or authorisation

Warning Signs

  • Unfamiliar transactions on your bank statement
  • Notifications for purchases you didn't make
  • Login alerts from locations you don't recognise
  • Emails about account changes you didn't request
  • Unexplained reduction in account balance

How to Protect Yourself

  • Regularly check your bank statements and transaction history
  • Set up transaction alerts on your banking app
  • Use strong, unique passwords for banking
  • Enable two-factor authentication where available
  • Never share your PIN or full password with anyone
  • Cover your PIN when using ATMs or card machines

📖Real-Life Example

"A customer's card details were stolen via a fake retail website. Over £5,000 was spent on electronics across multiple transactions before the bank flagged suspicious activity."

Cryptocurrency Scams

Fake brokers or advisors pretend to be experts

Cryptocurrency scams exploit the complexity and hype around digital currencies. Fraudsters pose as crypto experts, brokers, or investment platforms, promising guaranteed returns on Bitcoin, Ethereum, or other cryptocurrencies.

How This Scam Works

  1. 1Scammers create professional-looking websites and social media profiles
  2. 2They use fake testimonials and celebrity endorsements
  3. 3Victims are promised guaranteed high returns (often 10-50% per week)
  4. 4Initial 'investments' show fabricated profits to encourage more deposits
  5. 5When victims try to withdraw, they're asked for additional fees or taxes
  6. 6Eventually, the platform disappears with all funds

Warning Signs

  • Guaranteed returns - crypto markets are highly volatile
  • Pressure to invest quickly before 'missing out'
  • Requests to pay in cryptocurrency or gift cards
  • Celebrity endorsement claims (often fake)
  • Unregulated platforms not listed on the FCA register
  • Unable to withdraw funds without paying additional fees

How to Protect Yourself

  • Only use FCA-regulated cryptocurrency exchanges
  • Be extremely skeptical of guaranteed returns
  • Never invest more than you can afford to lose
  • Research thoroughly before investing in any crypto project
  • Don't trust social media investment advice from strangers
  • Verify any celebrity endorsements are genuine

📖Real-Life Example

"A victim invested £10,000 in a crypto platform after seeing 'Elon Musk' promote it on social media. The fake platform showed 300% returns, but when they tried to withdraw, they were told to pay a 20% 'release fee'. Total losses exceeded £15,000."

Investment Scams

Enticing but ultimately fraudulent investments

Investment scams involve fraudsters offering fake investment opportunities in stocks, bonds, forex, commodities, or property. They use sophisticated tactics to appear legitimate, often mimicking real financial companies.

How This Scam Works

  1. 1Scammers cold-call, email, or advertise 'exclusive' investment opportunities
  2. 2They create cloned websites of legitimate financial firms
  3. 3Victims are shown impressive but fake trading dashboards
  4. 4High-pressure sales tactics create urgency to invest
  5. 5Small initial withdrawals may be allowed to build trust
  6. 6Larger withdrawal attempts are blocked with various excuses

Warning Signs

  • Unsolicited contact about investments
  • Promises of high returns with low or no risk
  • Pressure to invest immediately
  • Requests for payment via unusual methods
  • Difficulty withdrawing your money
  • Advisors who aren't on the FCA register

How to Protect Yourself

  • Always check the FCA register before investing
  • Use contact details from the FCA register, not those provided by the caller
  • Be wary of unsolicited investment offers
  • Take time to research - legitimate opportunities won't disappear overnight
  • Get independent financial advice before large investments
  • Remember: if it sounds too good to be true, it probably is

📖Real-Life Example

"A retired couple lost £180,000 to a cloned investment firm. The scammers used the name and FCA number of a legitimate company but provided different contact details. The money was transferred to accounts controlled by the fraudsters."

Safe Account Scams

Criminals pretending to be your bank with the right information

Safe account scams (also called impersonation or authorised push payment fraud) involve criminals pretending to be from your bank, the police, or other trusted organisations. They convince you to transfer money to a 'safe account' they control.

How This Scam Works

  1. 1You receive a call claiming to be from your bank's fraud team
  2. 2The caller may spoof your bank's real phone number
  3. 3They claim your account has been compromised
  4. 4They know some of your personal details, making them seem legitimate
  5. 5You're urged to move money to a 'safe account' for protection
  6. 6The 'safe account' is actually controlled by criminals

Warning Signs

  • Unexpected calls about account security issues
  • Caller creates panic about your accounts being at risk
  • Requests to transfer money to 'protect' it
  • Pressure to act immediately without thinking
  • Requests to keep the call secret from family
  • Caller stays on the line while you 'verify' the call

How to Protect Yourself

  • Banks will NEVER ask you to transfer money to a safe account
  • Hang up and call your bank on a number you trust
  • Use a different phone or wait 10 minutes before calling back
  • Never share your full password, PIN, or security codes
  • Take your time - legitimate callers won't pressure you
  • Discuss suspicious calls with family or friends before acting

📖Real-Life Example

"A victim received a call appearing to come from their bank's fraud line. The 'advisor' knew their name, address, and that they had an account with the bank. Panicked by warnings of hackers, they transferred £45,000 to a 'safe account' which was actually the scammers'."

Purchase Scams

Paying for goods or services you never received

Purchase scams occur when you pay for goods or services that don't exist or never arrive. Fraudsters create fake websites, social media shops, or marketplace listings to steal your money.

How This Scam Works

  1. 1Scammers create convincing fake websites or social media shops
  2. 2They advertise popular items at attractive prices
  3. 3Products may appear legitimate with stolen images and fake reviews
  4. 4Payment is requested via bank transfer, crypto, or gift cards
  5. 5After payment, goods never arrive or are counterfeit/poor quality
  6. 6The seller becomes uncontactable or the website disappears

Warning Signs

  • Prices significantly lower than elsewhere
  • Limited payment options (no PayPal or credit card)
  • New or unverified social media accounts
  • Poor website design or spelling errors
  • No physical address or contact number
  • Pressure to pay quickly before items 'sell out'

How to Protect Yourself

  • Research the seller and check reviews on independent sites
  • Pay by credit card for purchases over £100 (extra protection)
  • Be cautious of social media marketplace deals
  • Check for secure websites (https and padlock symbol)
  • If a deal seems too good to be true, it probably is
  • Use PayPal or buyer-protected payment methods when possible

📖Real-Life Example

"A buyer found a Nintendo Switch for £150 on a Facebook marketplace listing. They paid via bank transfer as requested. The seller blocked them immediately after payment. The gaming console never arrived."

Romance Scams

Fraudsters create fake relationships to steal money

Romance scams involve criminals creating fake online identities to form romantic relationships with victims. Over time, they build emotional connections and trust before fabricating emergencies to request money.

How This Scam Works

  1. 1Scammers create attractive fake profiles on dating sites or social media
  2. 2They invest weeks or months building an emotional connection
  3. 3They claim to be working abroad (military, oil rigs, medical missions)
  4. 4Eventually, they create emergencies requiring money
  5. 5Requests escalate: medical bills, travel costs, business problems
  6. 6Victims may be manipulated into money laundering

Warning Signs

  • Quick declarations of love from someone you've never met
  • They always have excuses for not video calling or meeting
  • Stories that seem too dramatic or perfect
  • Requests for money, no matter how logical the reason seems
  • They claim to live nearby but are always 'travelling'
  • Asking you to receive or forward money on their behalf

How to Protect Yourself

  • Never send money to someone you haven't met in person
  • Do a reverse image search on their profile photos
  • Be suspicious if they can never video chat
  • Ask friends or family for their perspective
  • Research their stories - many romance scam scripts are similar
  • Trust your instincts if something feels wrong

📖Real-Life Example

"A widow met a 'US Army surgeon' on a dating app. Over 8 months, she developed strong feelings. He asked for £15,000 for 'leave papers' to visit, then £30,000 for medical equipment seized at customs. Total losses: £85,000 before family intervened."

Golden Rules to Avoid Any Scam

Take Your Time

Scammers create urgency. Legitimate organisations give you time to think.

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Verify Independently

Contact companies directly using numbers from official sources, not those provided by callers.

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Protect Personal Info

Never share PINs, passwords, or security codes. Banks will never ask for these.

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Trust Your Instincts

If something feels wrong, it probably is. It's okay to say no and walk away.

Question the Unexpected

Be suspicious of unsolicited contact, especially about money or investments.

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Seek Second Opinions

Discuss important financial decisions with trusted friends or family before acting.

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