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Scams and swindles

A scam is a scheme designed to con you out of your cash. Scams come in many forms and are getting more sophisticated all the time. So, even if you think you would never be fooled, make sure you remain sceptical about offers that seem too good to be true – they usually are!

Scammers aim to con us all. Deceptive premium rate competition scams, bogus sweepstakes and lotteries, get-rich-quick schemes and fake health cures are some of the favoured means of separating the unwary from their money. And the number of scams just keeps on growing.

Types of money scams around at the moment

  • Bogus FSA and FOS communications – letters or emails claiming to be from the FSA or FOS asking for your personal information or money.
  • Bogus HMRC communications – telephone calls, letters or emails claiming to be from HMRC asking for account information or payment or offering a tax rebate.
  • Bank charge cold callers – telephone calls or emails out of the blue, offering to help reclaim your bank charges – often claiming to be from the OFT.
  • Identity fraud – someone impersonates you without your knowledge, often by stealing your bank or personal details, or discarded or lost documents.
  • Inheritance scam – a letter from someone claiming to be a lawyer and offering you their services in securing money left to you by a distant relative. They charge you various fees and ask for your bank account details to pay in the inheritance funds – at which point they empty the account and disappear.
  • Advance fee schemes – letters or emails that offer you vast sums if you make payments up front.
  • Visa/Mastercard scam – a telephone call telling you that you have been a victim of fraud and asking you to verify your card details.
  • Fraud recovery fraud – a phone call or email from someone claiming to be from an organisation tackling fraud and offering to help you recover money from a previous fraud.
  • Mobile phone insurance scam – a telephone call soon after buying your mobile phone offering you insurance cover.
  • Missed call fraud – you receive a call on your mobile phone, but the person hangs up after one ring. If you call back, you are put through to a specially set up premium-rate phone number.

Investment scams

  • Share scams (also known as boiler rooms) – a stranger rings you out of the blue and tries to offer you shares in a company you have never heard of.
  • Affinity fraud – investment scams that target members of a group, such as a community or a religious, ethnic, elderly or professional group.
  • Chain letters – letters or emails that contain a list of names and guarantee you a huge return for your small initial investment.

Online scams

  • Fund transfer schemes – money-laundering scams that tempt you to use your bank account by offering a commission, often in exchange for cross-border transfers. But you could wind up with a prison sentence too.
  • Online fraud (phishing) – fake bank websites that crooks use to try and get your personal details and money.

Consumer Direct’s website has more information about other types of scam – see Related links.

Report and support

The National Fraud Authority has launched Action Fraud, the national fraud reporting centre. You can report all types of fraud and get support if you have been a victim of fraud – see Related links.

The City of London Police is responsible for coordinating Operation Archway, the national intelligence reporting system for boiler room fraud. They have set up a website where you can get more information, including how to report suspected boiler rooms to them – see Related links.

Protect yourself

For top tips on how to protect yourself and your personal information, see our Stay safe section.

For tips on how to protect your computer, avoid online scams and help with protecting your identity, go to Get Safe Online – see Related links.

For tips on safe online banking see the UK banking industry's Bank Safe Online website – see Related links.

The Metropolitan Police has a special Fraud Alert website, set up to assist in combating specific types of fraud, and to prevent you becoming a victim of crime, through the prevention advice and disruption activity – see Related links.

Generally, firms have to be regulated by the Financial Services Authority (FSA), the UK's financial services regulator, or be the agent of a regulated firm. Regulated firms and their agents are put on the FSA Register and have to meet certain standards. Always make sure that the firm you use is on the FSA Register before handing over your money. If they aren't regulated by the FSA, you won't have access to complaints and compensation procedures if things go wrong – see If things go wrong. To find out if a firm is on the FSA Register, see Check the FSA Register.