Protect yourself from

financial scams
Legal
Welcome Contents
Have you been targeted by a scammer? If not,
youre in the minority our research shows that
04 
Seven ways to spot a scam 16 
Cracking the card crooks
more than one in two people have been on the
end of an attempted scam, or they know someone 06 
Protect your pension savings 18 
Dealing with common card
who has and theres a good chance someone fraud problems
will target you in the future. 08 
The trouble with pension
Scammers see changing technologies or liberation 20 
Stay safe online and on
new trends as their chance to exploit people. the move
For example, the pension reforms introduced 10 
How to avoid investment
in April 2015 have spawned thousands of attempted scams 22 
Dont panic if the worst
frauds from conmen trying to cash in on peoples happens
uncertainties about the new rules and what they 12 Six scams to watch out for
should do with their savings.
However, it is possible to protect yourself. In this
24 
Who to contact and when
guide, well talk you through some of the different
14 Advice on avoiding the rogue
scams out there and how to avoid them. Well give you advisers
the information you need to help you spot both existing
and new scams for yourself. And well tell you what
you can do if you fear youve fallen prey to a scam.
Dont be frightened by these fraudsters. With
common sense and careful planning, we, as
consumers, can stop them in their tracks.

Harry Rose
Editor, Which? Money

Which? Money carries no advertising, and our researchers do

not accept corporate hospitality. So when we recommend a
product, you can be confident it is because we genuinely
believe it is the best. Our goal is to give you the knowledge
to better understand and take control of your finances.

Which? Ltd 2016 This guide has been produced for general information and
interest only. Which? makes every effort to ensure that the information in the
guide is correct but we cant guarantee that it is 100% free of inaccuracies, errors
and omissions. The guide may not be reproduced, stored in a retrieval system,
transmitted in any form or otherwise made available to third parties without the
written permission of Richard Headland, Editor of Which? magazine. Commercial
use of the guide is not permitted.
Seven ways to 4 Pressurised to respond quickly?
Never proceed unless you are absolutely
certain your money will be safe. Once you
? Tip
Dont stay quiet. If you

spot a scam
Falling victim to a scam will cost you money and could be stressful,
so look out for warning signs that can help you avoid one
Scams are commonplace and becoming more so
by the day. More than half the Which? members
we surveyed say they have been targeted by a
scam over the past two years, or that they have
a friend or family member who has.
A scam is any scheme where individuals
try to obtain money or something else of
value from you dishonestly. That might mean
Scam spot
Avoid falling for scams by asking yourself the
seven simple questions below. If you answer yes
to any of them, theres a good chance its a scam.
1 Contacted out of the blue? An unsolicited
call can be a sign you dont want to deal with
a company, although businesses do sometimes
transfer it, it may be too late. Scammers will
often try to hurry your decision-making, but
a legitimate company will always give you
time and space to make an informed choice.
5 Are the contact details vague?
A PO Box address, premium-rate telephone
or mobile number can all be warning signs. If
anything goes wrong, its important you can
contact those involved.
6 Grammatical or spelling mistakes?
Legitimate organisations will rarely, if ever,
make glaring grammatical or spelling mistakes,
and, if so, they will usually be isolated incidents.
Scammers often use bad grammar and spelling
suspect a scam, contact the relevant
watchdog (see pages 2224), not
only so you can check out the
organisation for yourself, but also
to alert others.
on purpose to ensure only the most vulnerable
people will respond to their messages.
7 Are you asked to keep it quiet?
Being asked to keep something quiet should
always be a red flag. Its vitally important
that you can discuss any financial agreements
with your family, independent advisers or friends,
so they can give a second opinion.

misleading you about the risk of an investment,
or it could be a more outright fraud. The victims
of scams may suffer serious financial loss, while
the emotional effect of being targeted in this
way can be upsetting.
That isnt meant to scare you just to prompt
you to take care and to be vigilant. The good
news is that there are all sorts of ways you can
protect yourself from the scam merchants
even the more sophisticated ones. Above all, if
you can spot a scam or a scheme that looks
as if it might be one you can steer clear.
call customers out of the blue for a legitimate
reason.If you are called, make sure you do
all you can to verify the identity of the caller. If
youre not convinced of their identity, hang up
and contact the company from a different phone.
There are many instances where its best if
you are the person to instigate the first contact,
such as when youre looking to make an
investment or for a new bank account or credit
card. If youve never dealt with the company
before, just hang up.

2 Is the deal too good to be true?

Scams will often promise high returns for
very little financial commitment. They may even
say that a deal is too good to miss. If a deal
sounds too good to be true, it usually is.

3 Asked to share personal details?

Never share your personal details with
anyone if you cannot validate they are who they

say. Phishing emails or phone scammers will
often try to get valuable personal data from you,
and they can use this to steal your identity or
Never proceed unless you are absolutely

your money. certain your money will be safe
4 which.co.uk which.co.uk 5
Protect your
pension savings
Con artists can see the pension freedoms as a major opportunity
to target billions of pounds in Britons pension plans
No reputable pension adviser will cold call you
and attempt to talk you into a pension review, let
alone into transferring your money elsewhere
6 which.co.uk
Pension freedoms
The pension freedoms that came into effect in
April 2015 have created choices, allowing people
to make better use of their money in retirement,
and the reforms have been welcomed by many.
But, unfortunately, fraudsters are among the
beneficiaries they see the flexibility that the
system now offers as a golden opportunity to
exploit people who arent sure what to do with
their pension savings. Since the pension rules
changed, regulators have received 10,000
reports of attempted scams.
Free pension review scam
One issue is that many people know that as
they approach age 55, they are entitled to free
guidance on how to make the most of their
retirement savings. Regulators have recently
warned against scammers exploiting these
changes by cold calling people and offering free
pension reviews, sometimes claiming to be from
the Money Advice Service, which does provide
much of the guidance available under the system.
These reviews try to persuade people to move
money saved in their existing pension to a self-
invested personal pension (Sipp), or in a small
self-administered scheme (a type of occupational
pension with fewer than 12 members).
The money is then typically invested in
unregulated investments such as overseas
property developments. Not only are the returns
on these unreliable, but the investments are
unregulated, so victims dont have recourse
to the regulator or the Financial Ombudsman
Service if things go wrong.
Theres a pretty good chance of things going
wrong but even if the investments these
pensions fraudsters sell dont prove disastrous,
they take huge charges out of peoples savings
when transferring their money from their existing
pension arrangements.
Falling victim to a pension sting of this type
is likely to prove especially pernicious, since
theres no time to make good your losses. The
fraudsters effectively condemn people who have
Get Pension Wise
The governments Pension Wise service will
outline your options following the pension
changes, including income drawdown and
annuities. You can book a phone session
with someone from The Pensions Advisory
Service or a face-to-face visit to a Citizens
Advice Bureau. People aged 50 and over
with a defined contribution pension are
eligible. Call Pension Wise on 0300 330
1001 to book a consultation.
responsibly saved for themselves to a much
less comfortable retirement than they had every
right to expect. They may be left reliant on state
benefits and have little wealth left to pass on.
If in doubt, seek help
No reputable pension adviser will cold call you
and attempt to talk you into a pension review, let
alone into transferring your money elsewhere. If
you receive such a call, hang up the phone.
If you do have doubts about an adviser, check
out their credentials with the Financial Conduct
Authority (fca.org.uk/consumers/financial-
services-products). You could also ask your
current pension provider whether it has had prior
dealings with such a firm many scams have
been foiled by the intervention of pension
companies keen to protect their customers.
Pension freedom undoubtedly offers
opportunities, but to make the best of them,
most people need expert financial advice
from a specialist, who is extremely unlikely to
recommend high-risk or unregulated investments.
Find out more
i To look for a registered and
authorised adviser consult unbiased.
co.uk or Money Advice Services
retirement adviser directory at
moneyadviceservice.org.uk.
which.co.uk 7
The trouble with
pension liberation
Pension liberation scams could see you stung by high charges and
landed with a punitive tax bill. We explain how to avoid it
For many people, pension savings are by far
and away their most valuable asset and there
are times when it can be frustrating that cash
is locked up in a pension plan that you cant
access until you reach the age of 55. There
is a nasty and growing group of fraudsters
who know this all too well and are attempting
to cash in: the Financial Conduct Authority
says pension liberation scams cost people
9.1m just in the period between April and
August 2015.
The only advice to give here is to say that,
if you receive a call or text about pension
liberation, avoid it at all costs. These companies
get in touch, offering to unshackle the money
thats tied up in your pension before you turn
55 the earliest age you can access it. At best,
this is an extremely expensive way of getting
access to your pension savings and, at worst,
a major crime that could see you receiving
no money at all.
The pension liberation scam
It works like this. A pensions company sends
you a text saying something along the lines
of Unlock the value of your frozen pension
and get cash back today. You respond,
tempted by the idea of getting hold of the
thousands of pounds that youve saved over
the years, and you get a call from the company
saying that it will do the legwork for you.
Such firms may offer a cash incentive or
loan to move your money to another scheme,
8 which.co.uk
The Financial Conduct Authority says
pension liberation scams cost people 9.1m just
in the period between April and August 2015
There are no loopholes that will help
you escape this trap. Pension liberation
companies are full of tall stories about
you to get round the tax charge none
of them actually work. In the worst case,
you may not see your pension savings
elaborate arrangements that will enable at all.
or offer to get all of your pension savings
straight away. But youll be charged a hefty
arrangement fee for doing this somewhere
between 10% and 30% of the size of your
pension fund. Moreover, what the companies
often dont tell you is that theres an enormous
tax charge for accessing your pension early
55% of the money you take out.
So, if you were looking to liberate 100,000
from your pension, you might end up having
to shell out 30,000 in fees to the company,
leaving you with 70,000. A couple of weeks
later, youll get a letter from HM Revenue &
Customs (HMRC) demanding 55% not of
what youve got left, but of what was originally
in your pension. So you have to pay another
55,000 leaving you with just 15,000.
Thats an 85% hit to get early access.
Go further
The simple way to avoid being caught
out by pension liberation con artists is to
refuse to have anything to do with this
sort of activity.
Which? members can call the Which?
Money Helpline, who can help you
understand your pension options.
They have fielded numerous calls on
these issues over the past year. Visit
which.co.uk/helpline for more information.
which.co.uk 9
How to avoid
investment scams
Investment scams are very common, but you can dodge them
by dealing only with properly regulated firms
If something looks too good to be true, it almost
certainly is. That should be your golden rule
when it comes to considering investments
(legitimate or otherwise). Treat anyone who
offers you an investment scheme promising
higher returns than you could earn from a bank
or building society with suspicion all the more
so if they tell you these returns are guaranteed.
Your response to such pledges should be to
hang up the phone and to walk away.
However, lots of people get caught out.
Investment fraudsters are often polished
salespeople who use sophisticated tactics
to take in their victims. They are going to
extraordinary lengths to appear legitimate
and the result is that UK investors are losing
1.2bn to investment fraud every year, according
to official estimates.
Scammers are likely to have done their
homework on you, accessing publicly available
material to make it sound as if theyre a
reputable financial services company that
you might have had dealings with in the past.
Theyll use a respectable name and address
to seem more credible, and theyll talk in
reassuring terms designed to calm your nerves
theyll attempt to draw you into the scam
slowly, often making repeated approaches
before asking you for money.
Do your own homework
The good news is that theres a relatively simple
way to spot a scam before it is too late. In the
10 which.co.uk
vast majority of cases, an investment business
must be formally regulated by the Financial
Conduct Authority (FCA) in order to work
with the public. You can check up on a firm
by making a quick call to the FCA, or consulting
to U
its website (see box, below).
ac inv K in
Businesses regulated by the FCA have to co es ve
comply with the regulators rules about how rd tm st
in en or
gt t sa
customers should be informed of the risks
and opportunities in every investment. And, if
o o fra re
something does go wrong, you will usually
ffi ud lo
have recourse to the Financial Ombudsman cia e sin
Service, an independent complaints service, l e ver g
and the Financial Services Compensation sti y y 1.2
m ea b
Scheme, which pays redress to victims of
at r, n
company failures. es
There are a small number of unregulated
investments, where businesses offering them
do not have to comply with the FCA rules.
These are best avoided unless you really
Find out more
i The Financial Conduct
Authority continually updates the
Financial Services Register, its list of
authorised investment firms. You can are a sophisticated investor with detailed finding new ways to exploit people. If you
check whether a business is on it at knowledge of the investment in question get a cold call from someone offering you an
fca.org.uk/register, or by calling almost everyone else should steer clear. investment however plausible and attractive
0800 111 6768. The FCA also compiles On the following pages, we detail some of it may sound hang up at once. And every
information about common scams the most common investment scams of recent time you deal with any kind of investment
and the organisations behind them. years, but its important to stress that fraudsters company, check that it is properly regulated
are continually reinventing themselves and by the FCA.
which.co.uk 11
Six scams to
watch out for
These con tricks are common ploys to watch out for. Its not
an exhaustive list though, as new investment scams crop up
all the time, so look out for new tricks
1 Boiler room scams Bogus stockbrokers
offer to buy or sell shares with the promise of
big returns only for victims to discover shares
are worthless or non-existent. These scammers
are often based in boiler rooms abroad; they
cold call novice and experienced investors after
taking phone numbers from public shareholder
lists. Using high-pressure sales techniques,
professional-sounding stockbrokers may offer
free research reports into a company you hold
shares in, a gift or discount on dealing charges,
or secret stock tips. Youll be pressured into
quick decisions. Remember, the FCA regulates
stockbrokers in the UK, and authorised firms are
unlikely to cold call you. Offers to buy shares you
already own at above market value will be bogus.
12 which.co.uk
2 Carbon credit cheats A carbon credit
is a generic term used for certificates
or permits allowing carbon dioxide (CO2)
emissions. When sold to a casual investor,
theyre very unlikely to be able to sell or trade
them, but salespeople cold call investors, or
contact them by email, post or at a seminar.
You may be offered carbon credit certificates,
voluntary emission reductions (VERs), certified
emission reductions (CERs) or an opportunity
to invest in green schemes or projects that
generate carbon credits as a return on your
investment. Often, the salesman will say
that carbon credits are certified, but this
certification isnt recognised by any UK
compensation scheme.
3 Dodgy diamonds Investors are sold
diamonds that are either overpriced or not
a good investment. Cold callers encourage
investors to part with thousands of pounds
by insisting diamonds, especially coloured
ones, will provide attractive returns. Often,
the diamonds will be overvalued. And some
fraudsters may advise investing in stones that
dont even exist. There is no comeback, since
this is not a regulated business.
4 Fine wine fraud Investors are talked into
buying bottles, cases or barrels of fine
wine that are either overpriced or dont exist.
Brochures are sent out, and callers promise
guaranteed profits and fast returns, while
using high-pressure sales tactics. This type
of investment activity should only be promoted
to sophisticated investors with a lot of money
to invest. Some scammers may have just
a small amount of stock, while others dont
have any at all. Some have been known to
try passing off cheap plonk as fine wine.
5 Commercial property problems
A commercial property-related scheme
might offer you an investment in a car parking
space, self-storage warehouse or similar asset.
These schemes are likely to fall outside Financial
Conduct Authority rules on investment funds
if you are encouraged to buy a small piece of
property outright, rather than a share in a larger
development. The guaranteed returns may
not be outlandish, but because these schemes
are unregulated theres little to ensure theres
a realistic plan to protect your money and
underwrite the guarantee. Steer clear unless
youre a investor with experience in this area.
6 Cloning cons A clone firm will mimic
a genuine, authorised investment firm,
perhaps using a slight variation of the real
companys name. It will aim to convince you to
sink your money into its fake investment fund,
exploiting the reputation of the real company.
These illicit schemes often cold call, even if
youre registered with the Telephone Preference
Service. They look for victims who can be talked
in to making a bank transfer without doing the
checks that could reveal the scam. Trading
Standards has seen a rise in cold callers claiming
to be from the Telephone Preference Service
who then try to charge for registration or call
blocking. See which.co.uk/scams2016 for more.
Check them out
Remember, authorised investment firms
are regulated by the Financial Conduct
Authority. Tread very carefully before doing
business with any firm not authorised by
the FCA you will have little protection.
Visit fca.org.uk for more information.
which.co.uk 13
Advice on
avoiding the
rogue advisers
Financial advisers are well regulated, highly qualified and
very professional but con-men pretending to be authorised
to offer advice will lack these qualities
Authorised advisers
Getting good, independent financial advice is
crucial when planning your personal finances.
But how do you know that the person giving
you that advice knows what theyre talking about;
that when they take your money, it will end up
in the savings and investment products on which
you agreed?
14 which.co.uk
Authority. To obtain that registration, they will
have had to earn professional qualifications,
submit to financial checks and agree to abide
by the regulators rules on how to do business
including how to charge their customers.
Any financial adviser who attempts to offer
you their services but who isnt authorised to
do so by the FCA is breaking the law. Theyre
operating a fraud simply by working as an
unregistered financial adviser and theres
every chance youll suffer at their hands, either
through incompetence or in an outright fraud.
Importantly, authorised firms operate under
very strict rules, requiring them to keep clients
money absolutely separate from their own
finances. This means that if they suffer financial
problems, your money shouldnt be at risk.
Finding the right adviser
If you dont already have a financial adviser,
the Which? Local service can help you to find
an adviser in your area as recommended
by Which? members (visit local.which.co.uk).
Alternatively, unbiased.co.uk is an online
directory that allows you to find advisers
Not so friendly
It might seem natural to accept financial advice
from a friend or neighbour but unless theyre
properly authorised as financial advisers, they
shouldnt be working with you in any kind of
To be sure, you must deal only with properly
authorised advisers. There was a time when
anyone could call themselves a financial
adviser. Not today there are now very strict
rules about who can offer financial advice to
the public. And while there are different types
of financial adviser in the profession, all of them
must be registered with the Financial Conduct
by postcode. In both cases, only properly
authorised advisers should be on the list.
Even so and whenever youre dealing
with a new adviser it makes sense to check
the FCAs register of firms it has given a licence
(see fca.org.uk/register or call 0800 111 6768).
If a firm purporting to be a financial adviser is
not on this register, end all dealings with it at
once and tell the regulator.
If you are cold called by a financial services
firm that appears to be on the register, double-
check by calling them directly on the number
that the FCA has for them. It may also be useful
to consult the list of unauthorised firms that the
FCA knows about. The regulator lists con artists
it has become aware of on its website, in an
attempt to make people aware of them.
Dont be afraid to ask searching questions
of your financial advisers. Key questions
could include some of the following: what
qualifications do they have, what practical
experience do they bring, and can they
provide references from satisfied customers.
Competent, registered advisers should not
struggle with any of these questions.
professional capacity, and they certainly shouldnt
be taking your money. Unfortunately, there have
been many cases of people losing out to people
they knew and trusted.
which.co.uk 15
Cracking the
card crooks
Debit and credit cards are highly attractive to financial
fraudsters, so you need to be aware of the several different
ways scammers can target people

Card fraud is worryingly commonplace. Four
in ten Which? members surveyed have been
in the unnerving position of having their credit
or debit card compromised. And as spending
on cards has increased now accounting for
three in every four pounds spent in shops
so has fraud. Figures from groups such as
Financial Fraud Action UK show that fraud
losses on UK cards run into hundreds of
millions of pounds each year.
The good news is that your bank has to
refund fraudulent payments immediately,
so you shouldnt be left out of pocket.
But Which? research suggests this doesnt
always happen as quickly as it should. The
better option is to avoid falling victim in the
first place start by familiarising yourself with
the most common cons.
Remote purchase fraud Also known as card
not present fraud, this is the most common card
scam. It occurs when card details are fraudulently
obtained (for example, through a virus on your
computer or phishing emails) and used to buy
things online, on the phone, or by mail order.
Lost or stolen card fraud This type of fraud
occurs on cards reported lost or stolen by the
cardholder. Lost or stolen cards can still be used
online, over the phone or in shops that dont
have chip and Pin. They can be used more
widely if the criminal has shoulder surfed the
Pin (seen it while you entered it) before taking
the card. The same applies to cases where the
Expert tips
Remain vigilant in order to reduce the risk of
being caught out by one of these frauds. Our
2 Beware of calls from fraudsters posing as
bank staff (a common ploy is to claim to
be from the banks fraud department). If youre
cardholder has written down their Pin and kept experts tips, from industry pundits and police asked to ring them back, use a mobile to call
it in a purse or wallet that has also been stolen. advisers, may also help: your landline first to check the line has been
disconnected and the fraudsters arent still on
Counterfeit-card fraud The amount of money
lost through counterfeit card fraud where a 1 Alarm bells If someone calls or emails asking
for something out of the ordinary, then alarm
the other end, or use another phone.

fake card is created using the magnetic stripe

details of a genuine card has dropped 75%
since its peak in 2008, thanks to the success
of chip and Pin. Cases of counterfeit fraud are
now more likely to involve either foreign cards
that dont have this technology being used in UK
stores, or UK cards being used abroad where
chip and Pin hasnt yet been introduced in
the USA, for example.
bells should ring. Make sure you never give out
your Pin neither your bank nor the police will
ever call to ask you for it, or ask to collect your
3 Install anti-virus software and anti-
spyware from a trusted company on your
computer to detect and remove malware, then
card. Illicit schemes have little compunction run them at regular intervals.
about cold calling, even if youre registered with
the Telephone Preference Service (see page 13).
Theyll be looking for victims who can be talked
into making a bank transfer without making the
4 Check your transactions regularly to
make sure everything looks familiar. Card
providers will also keep an eye on spending
checks that could reveal the scam. patterns and flag unusual activity.

16 which.co.uk which.co.uk 17
Dealing with Keep your card providers in the loop tell
them when youre going on holiday, or if youre

planning an unusually large purchase

common card
fraud issues
If you do suspect you may have fallen prey to card fraud,
or that youre at risk, take action quickly to protect yourself
and mitigate possible losses
Even the most careful debit and credit
card holders can be caught out. But if you Q What if Ive been tricked into handing
over my details?
act quickly, you may be able to prevent
the fraudsters from cashing in. At the very A Scams involving cardholders getting a
call from someone claiming to be from
least, though, youll give your bank every their bank or the police are becoming more
reason to treat your case sympathetically common. The fraudster will attempt to dupe
and to refund your losses. you into revealing your Pin and handing over
your debit or credit card they may even

Q What do I do if I think my cards have

been compromised?
send a courier to pick it up. There are people
who have lost thousands of pounds in this

A If youve lost your cards or think theyve

may have been compromised in some
way, even though the fraudsters may have
used your card and Pin without your
way, its vital to call your card providers as
quickly as possible, so that the cards can be
authorisation.
These frauds are treated on a case-by- Q What do I do if Im refused
a refund?
If your banks decision on a refund is final,
ask it to issue you with a final letter of deadlock
cancelled. Youll find their contact details on
your statements.
case basis and there is no guarantee youll
get your money back. If you fear youve been A In the first instance, you should ask for
your complaint to be escalated through
so that you can refer your claim to the Financial
Ombudsman Service (FOS). Visit financial-
compromised, contact your bank immediately. your providers internal complaints process. ombudsman.org.uk for further information.

Q Who should I contact if Ive

been defrauded?
Q Can I be defrauded if I have a

A If you discover fraudulent transactions on

your account, contact your bank or card
provider first.
Theres no need to go to the police unless
another crime has been committed alongside
the fraud for example, if your wallet was
stolen. You can be confident the bank will
pass the case to the police and that it will
be acted on.
A
contactless card?
Contactless technology, which allows you
to make payments by tapping your card
on a reader, has been the source of a number
of security concerns in recent years. For now,
however, contactless fraud is rare although,
as payment technology develops, potential
fraud in this area is being closely monitored.
If you have concerns, speak to your bank.
Talk to your card providers
Debit and credit card providers are on the
alert for suspicious payments transactions
from locations where you dont normally spend
money, for example, or a particularly sizeable
amount of spending.
In many ways, this proactive stance is to
their credit, but it can also cause you problems.
Holidaymakers may find their cards turned
down when they are overseas, for example, or
it may sometimes be difficult to pay for a large
one-off transaction.
To reduce the risk of such a problem, keep
your card providers in the loop call them
before youre going on holiday to let them know,
for example, or let them know if youre planning
an unusually large purchase.

18 which.co.uk which.co.uk 19
Stay safe online
and on the move
Online and mobile banking make life convenient, but take
precautions against fraudsters to keep your finances secure
Britons are using online banking in record
numbers logging in 9.6 million times a day.
Fraudsters are changing their attack methods
to keep up with the online demand, with
criminals combining more widely known
phishing (email) and vishing (cold call)
scams with online banking attacks, such
as installing malware.
20 which.co.uk
Increasingly sophisticated online attacks
present banks with a hard task to manage.
Yet we rely on them to safeguard our funds
and should expect there to be strong security
measures in place. Which? research suggests
that the banks are generally doing a good
job, but you can also take simple the following
steps to protect yourself.
Dont be the weak link No matter how good
your banks security is, it could be let down if
you have weak usernames or passwords, or if
you write down these passwords or share them
with others. Opt for longer and more complex
passwords at the very least mixing letters and
numbers and avoid choosing options that
someone could guess from your social media
profile, such as a pets name. And keep security
software up to date to protect your computer
from malicious attacks.
Take care with wi-fi Sophisticated crooks may
be able to get into your bank account by piggy-
backing on your wi-fi connection when youre
banking online. At home, make sure your wi-fi is
password protected and try not to access online
banking via public wi-fi services, particularly in
crowded venues such as coffee shops.
Report suspicious activity As long as the
bank cant prove youve acted fraudulently or
been grossly negligent, it must refund you for
fraud that results from a criminal gaining access
to your online account the most you could
be liable for is 50. But losses from fraud
affect us all indirectly via costs to the industry
that theyll pass on in other ways. Letting your
bank know quickly if you suspect a problem
can minimise how much money, if any, is lost.
Reject emails and calls from your bank
Phishers/vishers can be convincing. Never click
on links unless youre sure an email is genuine.
If youve been called and want to call your bank
back, wait a while or use a different phone
some scammers hang on the line while you dial
the real number, so you think youre through to
your bank when youre actually still speaking to
the fraudster. Your bank will never ask for your
full Pin or password over the phone or via email.
Look out for fake bank sites Fraudsters
emails will often direct you to a fake site set
up by con men pretending to be your bank this
Opt for longer
and more complex
passwords, mixing
letters and numbers,
and avoid choosing
options that someone
could guess from your
social media profile
is where they will try to dupe you into handing
over security details or money. Never make a
transaction on a site that you dont fully trust,
and look out for tell-tale signs such as odd web
addresses, poor-quality design, and spelling
and grammar mistakes. Type in your banks
URL directly yourself.
All of these warnings apply just as strongly if
youre one of the growing number of people
who now uses apps on a smartphone or tablet
for mobile banking. All the banks say they have
sophisticated systems in place to prevent app
hacking, and that it is no less safe than online
banking, but you still need to be vigilant.
One extra tip is to set a passcode to unlock
your phone. This way, if your mobile is stolen,
fraudsters will have to find a way past this to
access your mobile banking apps, as well as
the log-in passwords these apps require to
access your information.
Find out more
i Bank online safely:
which.co.uk/banksafe
Which? members can access
antivirus software reviews:
which.co.uk/antivirus
Best bank accounts:
which.co.uk/banksatisfaction
which.co.uk 21
Dont panic if the
worst happens
Take action quickly to limit your losses and alert others
if you do fall victim to a suspected scam
If you fear you have fallen victim to a scam
or you know you have dont panic. By acting
quickly and contacting the right organisations,
you may be able to prevent or limit losses and
possibly even ensure the scam merchants are
eventually caught.
Crucially, any fraud related to your bank
account or credit card should be reported to the
provider as soon as possible. Unless you have
been negligent, you should be able to recover
most losses you suffer from these firms, but
they expect you to act fast, so that they can take
action to limit your losses. Dont wait to take
action until youre sure youve been targeted
get cards and accounts frozen straight away.
Frauds of this type dont normally have to
be reported to the police your bank or card
company will take responsibility for liaising with
the authorities. In other cases, however, you will
need to report the scam.
Reporting the fraud
Unless your bank tells you otherwise, you should
report frauds. Your first point of contact for any
fraud is Action Fraud, the UKs national fraud and
cyber crime reporting centre. It is a central point
of contact for fraud and financially motivated
internet crime and has an online reporting tool; or
you can speak to an adviser on 0300 123 2040.
After reporting a scam, youll get a national crime
reference number, and the case will be referred
to the National Fraud Intelligence Bureau.
Action Fraud liaises with the police so you
22 which.co.uk
dont need to but if you do want to talk to the
police direct, contact your local police station
(although dont use the 999 number, which is for
emergencies only).
The law states
that your liability is
generally limited to
50 if a card was
used without your
permission
For scams in areas of financial services that
are regulated pensions and investments,
for example you should also talk to the
Financial Conduct Authority (0800 111 6768). It
is responsible for policing the activities of most
financial businesses. And if youre contacted by a
clone company that is attempting to pass itself off
as a bona fide business, you should get in touch
with the real company to let it know.
Finally, Trading Standards sometimes gets
involved with disputes over products and
services not supplied as promised you can
contact them via the Citizens Advice consumer
helpline on 0345 404 0506.
Dealing with bank fraud
Most banks are sympathetic when customers
fall victim to fraud. But its important to know your
rights. Above all, you dont have to prove your
innocence to the provider the burden of
proof lies with the bank.
While you may have to pay the first 50 if
your card was lost or stolen, under the Payment
Services Regulations, youre liable for the full
amount only if the bank has evidence you
authorised the transaction or acted fraudulently
or with gross negligence for example carrying
your Pin and card together in your wallet.
The rules for credit cards, covered by the
Consumer Credit Act, are similar. The law states
that your liability is generally limited to 50 if a
card was used without your permission. Gross
negligence isnt specifically addressed, but the
Financial Ombudsman Service says that unless
your provider can prove that you authorised the
payment, you should get all but 50 back
even if you were careless.
Providers take a harder line when the correct
Pin is used at a payment terminal, because the
system should protect against cloning and stolen
card abuse but they cant automatically refuse
refunds. Using the correct Pin isnt solid proof
of complicit fraud or gross negligence.
Similarly, while its more difficult to get a
refund after phishing or vishing scams, its not
impossible. If youre unhappy with your financial
providers decision, you can take your case to
the Ombudsman.
Section 75 can be your friend
Section 75 of the Consumer Credit Act
1974 can make credit card providers
jointly liable for breaches of contract
or misrepresentations by a trader
when you paid using your card. This
means you shouldnt be left out of pocket
if an item youve ordered is faulty, the
retailer goes out of business or it doesnt
deliver what it promised.
which.co.uk 23
Who to contact
and when
If you suspect youve been the
victim of a scam, who do you
contact? Weve pulled together
the key contacts below
Action Fraud
The UKs national fraud reporting centre for fraud
and financially motivated internet crime. They
have an online reporting tool, or you can call and
speak to an adviser.
actionfraud.police.uk
0300 123 2040
Citizens Advice
The Citizens Advice website provides some
information on dealing with scams, and you can
also call to speak to
an adviser.
citizensadvice.org.uk/consumer/scams/scams/
0345 404 0506
Financial Conduct Authority (FCA)
The FCA is responsible for policing and
regulating the activities of financial businesses.
Their website provides information on avoiding
and reporting scams. They also publish a list
of authorised firms and the firms that are
unauthorised and should be avoided.
fca.org.uk/consumers/scams
0800 111 6768
National Fraud Intelligence Bureau (NFIB)
When you report a fraud to Action Fraud, you
are given a police crime reference number and
your case will be referred on to the National
Fraud Intelligence Bureau, which is run by the
police service. See Action Fraud, opposite,
for contact details.
National Trading Standards
Trading standards have enforcement powers
to pursue scam operators informed by Action
Fraud. They can also get involved in disputes
over products and services not supplied
as agreed.
nationaltradingstandards.uk
0345 404 0506 (via Citizens Advice consumer
helpline)
Telephone Preference Service (TPS)
The TPS is a central opt-out register allowing
people to register their wish not to receive
unsolicited sales and marketing telephone
calls. Note that Trading Standards has seen a
rise in cold callers claiming to be from the
Telephone Preference Service who then try
to charge for registration or call blocking.
See page 13 for more on this.
tpsonline.org.uk
0345 070 0707