Fraud prevention
To help you stay one step ahead, we’ve brought together a wealth of fraud prevention articles, research and updates from our experts in one handy location.
Latest fraud and scam news
Cybercriminals’ tactics evolve all the time. It’s important that you and your clients stay up to date too.
Four ways to protect yourself from online scams in the new year
Cyber attacks – in the news and on the rise
Always be aware of your surroundings
Don't let fraudsters make a fool of you
Shield your interests against SIM swap scams
Four key takeaways from the WPC scams report
Spotting scams
Investment platforms: navigating the maze of investor protections
What actions can you take to help keep you and your clients safe online?
Financial scams are depressingly common and often target people’s hard-earned pensions. This has particularly been the case since 2015, when government reforms gave savers total freedom and choice over what they do with their retirement pot from age 55.
Official estimates from the Pension Scams Industry Group suggests £10 billion have been stolen from pensions in the past six years.
Scam activity increased during the coronavirus pandemic, with fraudsters aiming to take advantage of increased vulnerability among UK savers. And while efforts are being made by the authorities to protect people from financial crime – including banning pensions cold-calling and giving providers more power to reject suspicious transfers – the onus remains on individuals to protect themselves.
Five tips to help prevent you from being scammed
- Tip 1 - Don’t trust unsolicited calls
- Tip 2 - Question ‘Guaranteed’ returns
- Tip 3 - Beware of unregulated investments
- Tip 4 - Do due diligence
- Tip 5 - Talk to your clients
Your clients should be suspicious of unsolicited calls, texts or emails about their pension
Scams often start with a call, text or email out of the blue offering ‘help with’ or perhaps ‘a review of’ pension arrangements.
To be safe, your client should simply not engage with anybody they don’t know who contacts them about their pension – or indeed their finances in general. If your client believes someone is trying to scam them, get them to report it to Action Fraud.
Anyone promising large, guaranteed returns should be treated with extreme caution
Another tell-tale sign of a scam is the promise of huge, guaranteed investment returns, often over relatively short spaces of time.
The rise in popularity of cryptocurrencies has inspired a lot of scams like this recently, but fraudulent investment ‘offers’ can take many other weird and wonderful forms.
Only deal with regulated companies and individuals
Unregulated ‘introducers’ often sit at the heart of scams, peddling unregulated investments. There is obviously nothing wrong with investing in legitimate unregulated assets, but where fraud occurs these often turn out to be vastly overhyped or entirely fictitious. Even where an unregulated investment is real, your client will not qualify for FSCS protection (worth up to £120,000) if they suffer losses through mis-selling.
Due diligence is essential
Scammers’ tactics have become more sophisticated in recent years, with ‘clone’ scams – where fraudsters impersonate a real firm to con people out of their cash – increasingly common.
Contact made via suspicious phone numbers or email addresses can be cross-checked with the FCA register to make sure people are who they say they are.
If your client feels like they’re being rushed or are in any doubt, ask them to speak to you
High-pressure sales tactics – such as telling someone they need to invest by a set deadline – are a classic scam tactic and should immediately set off alarm bells.
Clients must not, under any circumstances, be rushed into a decision they aren’t completely happy with. Remind them that you are available if they want to discuss their options before deciding what to do.
Cybercrime resources
With the fraud and scam landscape continuing to evolve, these resources will provide you and your clients with a helping hand in the fight against cybercrime.
Protect your firm and your clients
Discover the tactics criminals employ to steal information and money – from phishing and malware, to social engineering.
Pension fraud
You can help protect your clients by pointing out the warning signs of pension fraud.
Cyber fraud FAQs
Get to know the tell-tale signs of cybercrime, and how to make sure you and your clients avoid falling victim.
Investment scams
New and more sophisticated investment scams are emerging all the time. Here are a few we know are prevalent at the moment, and ways in which you can protect yourself.
FCA ScamSmart
Head over to the FCA’s ScamSmart page for even more information on how to protect your clients and your business from cybercriminals.
Protect yourself from scams
Check the Financial Services register
Warning List of unauthorised firms
