Staying scam-free: an essential guide to financial fraud prevention
Helping you stay safe from financial crime and scams
Warning signs of financial fraud: what to look out for
Scams take lots of forms, including fake websites and products, to emails, text messages and phone calls as well as many more. Scammers use these methods to request personal information from you, such as bank details or passwords, disguised as genuine communications from trusted sources, but are designed to make you act impulsively and second guess your instincts. A fraudster's main aim is to try to get you to hand over your cash, so it could be a warning if you receive requests like these.
In the past, scammers have contacted our customers and attempted to defraud them. This page contains important information to help you identify potential scams and to keep your finances safe.
Stay safe tip: remember, if it looks too good to be true, then it probably is.
How to spot and avoid pension scams
Pension scams are among the most common that people may fall victim to. It was reported that the average losses from pension scams double in a year, with victims typically losing more than £50,000*.
There are resources available to help you spot and avoid pension scams:
- The Pension Regulator's (TPR) Pension Scam Guidance – provides an overview of what pension scams are, the warning signs you should look out for, and outlines the responsibilities of pension trustees and administrators, employers and business advisers.
- The Financial Conduct Authority’s (FCA) ScamSmart Tool – a useful tool to check whether an investment or pension opportunity is a potential scam.
- The FCA and TPR Pension Scam Leaflet – understand what tactics scammers may use, how to protect yourself and how to report a suspected scam.
- The House of Commons Pension Scams Briefing Paper – provides information on pension scams and policy action taken to prevent pension scams.
- There can be significant tax implications if you choose to cash in your pension in one go, so check the tax position before you make any decisions. Take a look at our online tax calculator to help.
How to identify an email scam
Scam emails may look authentic, but their purpose is usually to frighten you into acting quickly. For example, they could claim there’s a problem with your policy with us and provide instructions to solve the issue.
Signs of a potential email scam
Stay safe tip: many scam emails try to look like they’re from genuine companies by using their name, logo and branding. If you receive one of these emails, it’s best to contact the genuine company directly by using the contact information from their real website. Don’t use any contact information from the email.
Cloned websites
A cloned website is a fake replica of a company’s website. Its purpose is to trick customers into believing it’s real so scammers can ask the customer to enter their personal or bank details.
Cloned websites can sometimes advertise fake products that promise to make you money. These ‘products’ often seem too good to be true. If you fill in an application or make a purchase, you could hand over important information such as your bank details, password, or date of birth.
Stay safe tip: the easiest way to identify a cloned website is by looking at the domain name. For example, Canada Life only has a small number of websites. Our contact details can all be found here. Always look at the website domain for clues to make sure you aren’t accessing a cloned website. If you are in doubt, contact Canada Life directly for advice.
How to identify a phone scam
Scammers will often call or text out of the blue and make you feel under pressure to give personal information right then and there. While we may call you from time to time, we’ll never ask you for your bank details over the phone. Canada Life will never text you, so any message claiming to be from us should be regarded with immediate suspicion.
Phone call scams
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While security questions are common to confirm your ID, scammers will try to get as much information from you as they can. Avoid giving away bank details, passwords, or PIN numbers over the phone to prevent identity theft or financial loss.
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Is the caller being persistent? Scammers will pressure you into giving them what they want. Take as much time as you need to think it through. If you feel uncomfortable, hang up.
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Is the phone call from a company you’ve never heard of before? Is the call coming from a withheld number? Does the reason for the phone call sound suspicious? If in doubt, play it safe and hang up.
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While security questions are common to confirm your ID, scammers will try to get as much information from you as they can. Avoid giving away bank details, passwords, or PIN numbers over the phone to prevent identity theft or financial loss.
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Be aware of odd, incorrect punctuation and spelling.
Are there odd symbols in the text message, spelling errors or incorrect use of punctuation? These are all signs of scams. -
Be careful of links in texts. For example, a scam text may tell you that there’s a problem with your policy or bank details and ask you to click on a link to solve the problem. Although it may seem quick and easy, you might be sent to a cloned website or exposed to a phone virus.
Steering clear of social media scams
Many of us have come to rely on the likes of Facebook, Instagram and Twitter to stay connected, to follow the news and even buy things. But with their rise in popularity comes an increased risk of fraud.
These types of scams are getting more and more sophisticated, often using brand logos and false terms and conditions to appear genuine. Common types of social media fraud include:
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Six steps to stay safe on social media
1. Don’t post personal details
Never share nicknames, pet’s names, address or when you’re on holiday, as you could be increasing your risk of a fraudster being able to piece together your details.
2. Make social accounts private
Limit the details that can be viewed by the public. That way only trusted friends and family can see what you’re posting.
3. Steer clear of strangers
Always make sure they are genuine and you’re providing details for the right reason.
4. Delete old social media profiles
If a profile was created ten years ago, there may be personal information currently available for a fraudster to use that you’re not aware of or you have forgotten about – it’s key delete old profiles.
5. Install anti-virus software
There are a number of free anti-virus services available, so be wary you are using a trusted company. Alternatively, you can purchase anti-virus software from your local computer/electrical store.
6. Take care on public Wi-Fi
Scammers can impersonate genuine Wi-Fi networks or hack an existing open public one. When on the go, avoid using apps with sensitive information, like mobile banking.
What psychological tactics are involved with fraud?
We've covered lots of methods of how a fraudster may attempt to relieve you of your hard-earned nest eggs. However there's often an additional psychological layer on top of all of the methods above to make scams seem even more believable and genuine.
Sometimes referred to as social engineering, which is the use of deception to manipulate you into giving away private information and details for fraudulent purposes. We've outlined some of the main social engineering and psychological tactics that may be involved within scams.
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.