“Hi Mum, smashed my phone, please contact me"
Many of us in the UK have either had a scam call, received a sketchy email or been sent a suspicious message online.
Having someone try to defraud you is the norm.
Fraud is the common type of crime in the UK but almost no one gets caught. In 2022, only one in every 1,000 fraud cases resulted in a conviction.
According to UK Finance, it is estimated that over a billion pounds has been lost to fraud. Other research has said the figure is as high as £17 billion.
Here are five of the UK’s most prominent scams to watch out for and how to avoid falling victim to them.
The ‘Hi Mum’ Scam
One of the most prominent scams of 2023 is the “Hi Mum” scam.
This scam, which plays on the natural instincts of worried parents to protect their children, has seen reported losses of nearly £500,000 in 2023.
The reason is so prominent is perhaps because it is very successful, with thousands of pounds paid out by worried parents within minutes of first contact.
It begins with a message that typically reads:
“Hi Mum, smashed my phone, please contact me on this number: 07———”
When contact is made, the unsuspecting victim is asked to transfer money so that their supposed child can buy a new phone.
How to beat it?
As a general rule, be sceptical of any contact at all which comes out of the blue. That will cover you against all kinds of scammers.
It is also a good idea to set up code questions only your family could know the answer to.
Alternatively, have codewords you use together before entering into any financial conversation or commitment over the phone or online.
Loan Fee Fraud
The loan fee fraud preys on desperate people who are looking for a payday loan.
It usually begins with a fake brokerage website where you fill in an application, believing you are sending your details and requesting a loan to a legitimate broker.
Hours or days later, you receive a call from someone claiming to be from a legitimate loan company, congratulating you on your successful application.
But the issue is that your bad credit rating means you need to pay a small fee, usually between £50 and £200.
It may not sound like a lot but for desperate individuals, it could be the difference between going hungry and being able to afford a meal.
If you do pay out not only will you never see that money again, you won’t get your loan either.
You’ve just been called by a scammer who had all your information from the moment you entered it into their fake brokerage website.
How to beat it?
The best thing to do is to call back anyone who claims to represent a company on a number you will find for them yourself. Any legitimate caller will have no problem with that.
A scammer will do anything to keep you on the phone because if you call back whoever they’re claiming to represent, it won’t be the scammer you’re talking to.
Online Marketplace Scam
There are a few versions of the online marketplace scam but they all follow a similar outline.
This scam revolves around higher-value items like vehicles or rental properties.
The posting is a copy of a genuine advert for the item elsewhere online.
You enquire about the availability of the item and are told that it is. But for some reason, it cannot be seen in person at the moment.
If it’s a rental property, they might say there is someone else still in it. If it is an item it’s likely they will say it’s currently elsewhere in the country.
Regardless, some up-front payment will still be necessary to secure it, like a deposit.
The seller may even send an invoice with supposedly genuine company details on it for the payment to be made.
As soon as you transfer your money, the account selling the item is deleted and all contact is lost.
This is because the invoice you were sent by the scammer simply copied the details of a genuine business, but altered the bank account information for payment to go to them directly.
How to beat it?
To beat this scam, do not pay for an expensive item on a social media marketplace which you have not seen in person.
Research the seller.
Does their social media profile have a history? Or are they a new user? Do they have previous customers you can speak to or see reviews from?
Verify everything before you pay any money.
Pig Butchering
This is one of the exploitative scams out there.
The name is translated from the Chinese word shazhupán because this practice originated with gangs in China and involves “fattening up” victims before taking them for everything they’ve got.
It begins with a direct message – usually on social media or a dating app – that initially seems innocent.
But over the following days and weeks, your new friend will love bomb you and may even share personal details and encourage you to do the same.
This is all designed to gain your trust.
One day, your ‘friend’ will say they have been investing in a certain cryptocurrency platform and are doing well.
They will then casually suggest you do the same. Should you decide to invest, you may see some initial success.
The ‘friend’ then encourages you to invest more money after claiming that they have.
Then one day, you log in to find your friend’s profile no longer exists.
When you attempt to check on your cryptocurrency investment, the website doesn’t exist either.
The entire platform was built by scammers as a vehicle to steal money, and the months of dialogue with your new friend were just a set-up to get you to deposit yours.
How to beat it?
Admittedly, this scam is difficult to see coming.
But the best thing to do is to be very careful where you invest your savings.
Only take financial advice from sources which are regulated by the Financial Conduct Authority, and never from someone who, ultimately, is no more than a stranger online.
Social Media Hacking
For victims, social media hacking can be both extremely distressing and financially damaging.
Whether it is a personal account, business account or you are an influencer with a large following, it is a concerning time.
All that effort or personal photos have been compromised by a stranger.
The message explains that your account has been hacked. To get it back you need to pay.
If you try to log in using your usual details, you cannot. Your password has been changed.
The scammers have even altered the contact details within the account so you cannot use an alternative method to prove who you are, as any password reset codes or emails go to a different email or phone number.
How to beat it?
The main thing to do is to remain calm. Paying will not help as it is possible that the scammers will continue asking for more money.
If it’s a business account or you use it to earn money as an influencer, go to the police and report it as a crime.
Also, use the support of the social media platform and tell the platform you have been hacked.
Request a way to prove to the platform that you are the account’s owner.
Most will then take you through a verification process in order to prove the account is yours.
Also, if you haven’t got it already, set up two-factor authentication on your social media accounts and ensure that your passwords are of serious strength.
These scams are some of the most common in the UK, resulting in devastating consequences.
Billions of pounds have been lost as a result.
Fortunately, there are ways to spot them, preventing you from falling victim to them.