Protecting Yourself from Fraud

Financial fraud has always been a problem, particularly in times of crisis. Criminals are adept at exploiting public concerns to part victims with their money. Over time, awareness of fraud has increased, and financial companies have improved their controls.

But scammers move with the times and it’s important to be aware of the schemes currently circulating.

Scams to Avoid

At any given time, there are hundreds of scams in operation, and it would be impossible to list all of them. Below are some examples of recent ones:

• Callers posing as legitimate companies, such as your bank or utility company, to extract payment details from you. In some cases, the scammers are able to spoof genuine email addresses and phone numbers which makes this even more difficult to spot.
• Callers pretending to be from the National Crime Agency stating that your National Insurance Number has been compromised.
• HMRC imposters claiming that you owe large amounts of tax.
• Recorded messages allegedly from Amazon threatening to close your account if you don’t give them payment details.
• Scams around Bitcoin and other forms of cryptocurrency. Some of these schemes will offer the ‘opportunity’ to invest in worthless or inflated currency, while others will tell you that you have already made significant profits and ask for your bank details.
• Fake investment opportunities promising large returns and minimal risk.
• Dating scams which involve criminals using made-up profiles to extract money or gifts from their targets.
• Text messages claiming to be from delivery companies such as Royal Mail about unpaid delivery charges.
• Social media adverts for fake companies and products.

How to Spot a Scam

Scams can be tricky to identify, but it’s a good idea to keep an eye out for these warning signs:

• A company you don’t have an existing relationship with cold calls you and asks for personal information or remote access to your computer.
• An unexpected request to download an attachment or software.
• An offer or investment opportunity that seems too good to be true, particularly if there is a deadline attached.

Similarly, some scams try to scare their victims into transferring money, for example by masquerading as the police or HMRC.

• An email that requires you to click a link and enter personal details, including passwords. Sometimes these emails look like they are coming from legitimate companies, such as your bank.
• The person contacting you is reluctant to give you details you can verify, for example, a postal address or regulatory reference number.

What You Should Do

The simple solution is to not provide any information, click on any links, or download anything at the request of a cold caller or unsolicited email. If you think the contact might be genuine, you can call the organisation directly through the number on their website.

You should always delete suspicious messages and block cold caller numbers. Change your online passwords regularly to protect your accounts.

It’s also a good idea to check your credit report regularly. If a scammer has stolen your personal details and run up debts, you can usually spot this fairly quickly.

If you think you have been targeted by a scam, there are a number of things you can do:

• Contact the police if the scammer is local to you or if they have stolen money from you.
• Contact Citizens’ Advice or Action Fraud.
• Dial 159 to connect directly to your bank if you receive a suspicious call about a financial matter.
• Speak to your financial adviser.

How Financial Companies Protect Your Money

Most financial companies are extremely vigilant about fraud and have substantial controls in place to protect your money. We take this very seriously and will only recommend companies after completing robust due diligence.

Below are some of the processes we, and the companies we work with, follow to ensure your money is protected:

• All of the companies we recommend for your investments are authorised by the Financial Conduct Authority and in most cases, benefit from protection under the Financial Services Compensation Scheme.
• Our investment portfolios include thousands of stocks and bonds from across the global market. This means that if any one company fails or drops in value, it has a minimal impact on the portfolio.
• The companies we use follow strict procedures for updating your bank details. They will only transfer money to a new client account on receipt of a wet signature and may also require phone verification.
• Your bank should also have fraud controls in place, which may include account verification for new transfers, one-time passcodes for transferring money, and security alerts for unusual activity.
• Investment platforms separate client money from company assets. This means if the provider goes bust, your money does not form part of the liquidation proceeds.

Scammers will continue to hone their skills and find new ways to steal money and personal information. The key is to be vigilant, undertake due diligence, and ask for help if you need it.

Please don’t hesitate to contact a member of the team to find out more about how to protect your money and avoid financial fraud.