Staying scam-free: an essential guide to financial fraud prevention

Helping you stay safe from financial crime and scams

What is fraud?

Fraud and scams are deceptive schemes that aim to take money or assets from individuals or businesses. These activities can range from identity theft, cold calls and even more sophisticated scams. With cybercrime and fraudulent activity becoming harder to spot, individuals and businesses alike can become victims – it can effect anyone – so it's essential everyone is aware of the warning signs and methods fraudsters use. 

The goal of fraudsters is to steal people’s money. They will use dishonest tactics, including stealing identity information and tricking people into giving away their information, to try to gain access to accounts. Fraudsters will also make people believe they are offering investments that are not genuine or strike up relationships with people to gain trust and ask them to part with their money.  According to the Office for National Statistics (ONS), fraud was the most common type of crime between April 2022 and March 2023, with an estimated 3.5 million incidents of fraud experienced by adults aged 16 and over.

With fraud and scam operations becoming increasingly complex, it is easy for anyone to fall victim to their elaborate schemes. That's why we've put together this guide to help customers and business owners stay aware and protect themselves against common types of fraud and scams.

More information on common scams in the UK can be found on the FCA, Action Fraud, or FSCS websites.

If you suspect fraud, it's important to speak up. Not only will it help resolve the issue quicker, you'll be helping others by raising awareness and reporting the scheme sooner. 

What are the different types of fraud?

Fraud covers a wide range of criminal activities that benefit the perpetrator at the victim's expense. Understanding the different types of fraud will help you to stay vigilant. 

According to the National Crime Agency, the most common types of fraud in the UK include investment, romance, cheque, plastic card, and online bank account fraud.

Please note: if you suspect cheque, payment or banking scams, contact your bank immediately.

Below, we've listed the common types of fraud and scams to be aware of. Click on the links to read more about each one:

 

Helpful contacts when facing fraud


Contact your provider immediately if you're in the middle of a transaction. If you believe any products with us may be at risk, contact the product support lines; all our contact details are here.

Report any other incidents to:

Financial Conduct Authority (FCA):
Contact their consumer helpline at 0800 111 6768 or use their report form at www.fca.org.uk

Action Fraud:
On 0300 123 2040 or at www.actionfraud.police.uk

If you experience any payment, cheque or banking related scams, contact your bank immediately.

1. Identity theft

2. Romance scam

3. Investment fraud

4. Pension scams

5. Insurance fraud

6. Cybercrime

Warning signs: what should you look out for?

Fraudsters may try to get you to hand over cash, financial information, or security details, as their main goal is to take your hard-earned money. It could be a red-flag if you see any of these signs or receive requests like these. Below we take a look at some of the common methods scammers use to try and manipulate their targets.

Fraudsters can use different communication methods to approach you and sell you fictitious products and services, gather your information or strike up relationships. It is common for fraudsters to use fake websites, send emails or texts, call you out of the blue, appear in your social media feed, or even contact you via online games.

Here are some examples of what fraud could look like in real life:

  • People that you meet online, who aim to strike up an intense relationship and later ask for money.

  • A direct transfer of cash or cryptocurrency.

  • Prompts to click on suspicious links.

  • Emails, messages or phone calls requesting personal information.

  • Asking for payments before sending a prize or lost postal deliveries.

  • Unprompted contact about investments, often with rates of return that seem too good to be true.

We've detailed more information and common signs of fraud here. 

Staying vigilant: how financial fraud happens

Criminals know which buttons to push to get what they want. Fraudsters often use physical and psychological tactics (frequently referred to as 'social engineering') to prompt you to act quickly without allowing you the time to pause and think. Here are some of the key ways they use social engineering to manipulate situations:

  • Data breaches
  • Skimming devices
  • Emotion
  • Scarcity
  • Current events
  • Building relationships
  • Authority or a 'trusted' voice
  • False urgency

For helpful tips on how to spot the tactics fraudsters use, skip to our staying vigilant page here.

Six steps to protect yourself from scams

Discover the steps you can take to protect yourself from financial scams and what to keep an eye out for here.

Learn more 

Useful contacts when reporting fraud

Contact your provider immediately if you're in the middle of a transaction. If you believe any products with us may be at risk, contact the product support lines; all our contact details are here.

Report any other incidents to:

Financial Conduct Authority (FCA):
Contact their consumer helpline at 0800 111 6768 or use their report form at www.fca.org.uk

Action Fraud:
On 0300 123 2040 or at www.actionfraud.police.uk

If you experience any payment, cheque or banking related scams, contact your bank immediately.