Wherever money exists, so does the risk of someone trying to take it
This unfortunate aspect of human behaviour becomes all the more painful when it affects your personal finances.
Financial scams are becoming increasingly sophisticated, since money went digital, with billions lost each year to fraudsters.
Scams can target anyone—from seasoned retirees to sharp-minded students, individuals to major business owners. Behind them are clever criminals constantly devising new tactics to separate you from your money.
Understanding the latest scams and how to spot them is the first step in protecting yourself – so here are some of the current crop.
1.Phishing and smishing
Phishing (email) and smishing (SMS) scams are among the widespread and successful fraud techniques. Scammers send fake messages that appear to come from trusted organisations such as HMRC, your bank, delivery companies, or even the NHS.
These messages usually create a sense of urgency — for example, claiming your account will be closed unless you act immediately. You’re then prompted to click a link that leads to a convincing but fraudulent website designed to harvest your personal information or bank details.
The current favourite: an email that tells you that you have until tomorrow to claim the winter fuel allowance. Also, an email from a utility that tells you that your Direct Debit has not gone through.
How you could protect yourself: Never click on links in unexpected messages. Always verify directly with the organisation through their official website or phone number.
2. Investment Scams
The Financial Conduct Authority (FCA) has repeatedly warned about investment scams promising high returns with little or no risk. These may involve fake cryptocurrency platforms, unregulated bonds, or “get-rich-quick” property schemes.
These can be elaborate setups. They can start with a cold call, social media ad, or email that looks professional and persuasive. Once you’ve sent money, the scammers either disappear or string you along, extracting more money until you realise it’s a con.
Current favourite: offshore property investment for developments that don’t exist
How you could protect yourself: Always check the FCA register before investing. Be extremely cautious of unsolicited investment offers and remember — if it sounds too good to be true, it probably is.
3. Authorised Push Payment (APP) fraud
APP fraud occurs when you’re tricked into transferring money to a criminal posing as a legitimate payee. This scam has grown significantly in recent years and often involves impersonation of banks, solicitors, HMRC, or even family members.
Common scenario: fraudsters pretending to be from your bank warning you of fraud and telling you to transfer funds to a ‘safe’ account, safe in the sense you’ll never see it again.
How you could protect yourself: Always double-check payment details, especially for large transactions. Call the person or company on a known number before sending money.
4. Online Marketplace and auction scams
From Facebook Marketplace to eBay and Gumtree, fraudsters exploit online platforms by offering non-existent goods or services. They may ask for payment via bank transfer, promising quick delivery, but nothing arrives.
Currently popular: holiday rental scams — particularly during the summer, scammers post fake listings to lure in deposits or full payments.
How you could protect yourself: Use secure payment methods like PayPal which offer protection. Be cautious of sellers who insist on direct bank transfers or offer deals that seem too cheap
5. Romance scams
Romance scams continue to rise, particularly with older internet users. Criminals create fake online profiles, build emotional connections over weeks or months, and then invent a crisis that requires financial help — such as medical bills, travel costs, or legal fees.
These scams are emotionally devastating and financially ruinous.
How you could protect yourself: Be wary of online relationships where the other person avoids meeting in real life and starts asking for money.
6. Pension scams
With many people now managing their own pensions through drawdown and SIPPs, fraudsters target those looking to boost their retirement funds. They may offer free pension reviews, early access to your pension (which is rarely possible under 55), or high-return overseas investments.
These scams can leave you with no pension and potential tax penalties for unauthorised withdrawals.
How you could protect yourself: Never agree to a pension review from a cold call. Use the FCA’s ScamSmart tool to check whether the firm is regulated and trustworthy.
Staying Safe
The best defence is awareness. Always:
- Be sceptical of unsolicited contact.
- Use strong passwords and two-factor authentication.
- Report scams to Action Fraud or your bank immediately.
And if it’s a matter of investment, your pension or your mortgage, make sure you know who you’re dealing with and that they are someone you can trust
The simple way to do that is to call us at Continuum. We’re authorised and registered with the Financial Conduct Authority (FCA), helping you stay protected.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to any fraud protection strategy, you should seek independent financial advice before embarking on any course of action.
