Combating Financial Scams

Financial scams have always posed a significant threat to the unsuspecting public, but the rise in the UK over recent years has been particularly alarming. With a rapidly evolving digital age, it’s easier than ever for scammers to find new ways to defraud the innocent, and the figures reflect this growing concern.

According to a recent survey by Canada Life [1], 41% of UK adults have either encountered a financial scam or know someone who has in the past year. This unsettling statistic translates to approximately 26.8 million adults. Even more concerning is that 3.6 million have fallen victim, causing a collective loss of £17 billion, or an average of £4,715 per person.

Beware of the Traps

Here are some of the prevalent financial scams currently circulating in the UK. However, given the ever-changing nature of scams, it’s important to remain vigilant and alert.

Tax or Debt Collection:

Scammers exploiting the tax or debt collection scam often use the power of fear to their advantage. Posing as tax officials or debt collectors, they employ formal-sounding language and threats of legal action. Their primary objective? To induce panic in their unsuspecting victims, forcing them into hasty financial decisions. But how can one defend against such tactics? Verification is the best line of defence. It’s crucial for individuals to contact HMRC or their specific creditors directly. This can be done through verified phone numbers or official websites before parting with any money.

Advance Fee Scams:

There’s an undeniable allure to the promise of money, and it’s precisely this allure that advance fee scammers capitalise on. These malicious actors dangle the tempting prospect of a massive financial reward. In return? A seemingly insignificant upfront fee or, more dangerously, sensitive banking details. The best guard against such enticements is time-tested wisdom: if something seems too good to be true, it likely is. Consequently, any unsolicited communication, whether from an organisation or an individual, that demands an upfront payment, especially for unsolicited claims, should be met with the highest degree of suspicion.

“Hello Mum” Scams:

The emotional chord struck by the “Hello Mum” scams is what makes them so effective. Scammers adeptly impersonate loved ones, often projecting them in desperate situations. The narrative spun usually involves an emergency that requires immediate financial aid. This scam plays on the deeply ingrained human instinct to help family, clouding judgement with urgency and concern. So, how do you differentiate genuine distress from deception? The answer lies in cross-verification. It’s always prudent to contact the family member, whose identity is allegedly used, directly through previously known and trusted contact methods before initiating any fund transfers. 

AI Deepens the Traps

The technological advancements of AI have undeniably brought innovation across the financial sector. However, they’ve also presented new opportunities for financial scammers. Deepfakes, and AI’s synthesis technology, can now even produce eerily realistic voice and even more recently, video imitations. Imagine receiving a call from a ‘family member’ requesting funds, only to later discover it was an AI-generated scam.

AI’s role extends to phishing emails too. Gone are the days of glaringly obvious scam emails. With AI, these communications can mimic genuine interactions, often sourced from personal data breaches, deceiving even the most cautious recipients.

Learn to Protect Yourself

In the realm of financial security, while institutions undoubtedly play an essential role in safeguarding transactions and data, individuals also shoulder significant responsibility. Ensuring personal financial safety requires awareness, scepticism, and technological savvy.

A primary measure everyone should embrace is staying informed. Awareness acts as the first line of defence. By regularly educating oneself about the latest scams and fraudulent techniques, individuals can stay a step ahead. Regulatory bodies and banks frequently release updates about recent scam patterns, making them invaluable resources for the public.

It’s also important to exercise scepticism. There’s an old adage that says if something seems too good to be true, it probably is. This wisdom holds remarkably well in the digital age. Unsolicited communications, especially those dangling lucrative returns or pressing for immediate action, should always be approached with caution.

One’s personal information is like a treasure trove for scammers. As such, individuals must vigilantly protect their personal and financial details. Sharing critical information like PINs, passwords, or other sensitive data over phone calls, emails, or text messages, particularly when unsolicited, paves the way for potential scams.

Technological advances have made financial management more convenient, but they come with pitfalls. When accessing financial accounts online, it’s crucial to ensure you’re on a secure network. Public Wi-Fi networks, despite their convenience, are often the breeding grounds for cyberattacks, making them unsuitable for financial transactions.

Routine tasks, like reviewing bank and credit card statements, become significant deterrents to scams. By frequently monitoring these statements, individuals can spot and flag unauthorised or suspicious transactions. Such vigilance, combined with immediate communication with one’s bank, can combat many scam attempts.

In the ever-evolving digital landscape, keeping software updated is not just about harnessing new features. Ensuring your computer, smartphone, and other devices boast the latest security updates, and anti-virus software, can shield you from digital threats.

Added layers of security, like Two-Factor Authentication (2FA), are becoming mainstream. Activating 2FA for financial and other sensitive online accounts enhances protection, going beyond the conventional password. Speaking of passwords, the importance of using strong, unique combinations cannot be stressed enough. Abandoning easily guessable passwords and diversifying passwords across platforms is a must. For those overwhelmed by the plethora of passwords, password managers offer a handy solution.

Another deceptive technique in the scammer’s toolkit is Caller ID Spoofing. With this, they can make it seem they’re ringing from a trusted entity. It’s always wise to hang up and redial using a verified number if there’s any shadow of doubt.

Transferring money, especially during emergencies, can be a vulnerable moment. That’s why it’s recommended to cross-verify. Before initiating any transfer, a call or message to the requesting party through known contact methods can save one from deception.

Lastly, in the unfortunate event of encountering a potential scam or falling prey to one, it’s imperative to report the suspicious activity. Not only does this aid the authorities, but such reports also strengthen the community by alerting others.

While technological tools and institutional measures are pillars of protection, individual vigilance remains the foundation. With a proactive approach, complemented by technology and good old common sense, individuals can significantly reduce their risks of being caught by financial scams.


The battle against financial scams in the UK, intensified by technological advancements and socio-economic challenges, is ongoing. But, with awareness, scepticism, and proactive measures from financial institutions, you can safeguard yourself against these malicious threats. The good news is that not everyone falls for financial scams, and many scams are recognised and reported by vigilant individuals. Continued awareness is key, spread the word! 


[1] Canada Life – Articles – Features and Insights – Four in 10 (41%) UK adults experienced a scam attempt in the last year – August 2023