At a time when we are all trying to stay safe, sadly, there’s been a worrying increase in the number of scams since the coronavirus pandemic, with victims being tricked out of over £1.6 million since the start of the outbreak.
Scammers appear to be coming up with new ways of tricking people, and fears over coronavirus have given them an opportunity.
I have noted below some of the main scams and tips on how to avoid them:
Emails
Fraudsters are targeting people with a number of scam emails, for example, asking for donations or to claim a refund.
To avoid being scammed, don’t download attachments or click on links in emails purporting to be from well known organisations especially if the email is not expected. It is likely to be a scam. Also, it is worth checking the email domain as it may have come from a scammer overseas, which bears no reference to the organisation the sender is claiming to be from.
Examples of scam emails have come from HMRC claiming entitlement to a tax refund which then tempts you to click on a link and input your bank details. I have also heard about a very convincing email from the government which asks for money for the NHS as well as other organisations which claim donations will go towards the NHS. You can reduce the risk of being scammed by only donating to legitimate charities, and these can be searched via the Gov.uk website charity register.
Text Messages
Scammers are also sending text messages, again, that look like they are from a genuine organisation, such as the government, NHS or even your bank. They can appear to be very realistic and I myself have received several. The best advice is not to click on any link that appears to come from a legitimate source. HMRC does not issue tax rebates by text and banks don’t ask for personal information in this way.
Financial & Pension Scams
There are also scammers who pretend to be from an authorised financial advisory firm that typically cold call people to promote worthless or non-existent investments or property scams.
Also, there are fraudsters who claim they can help people access their pensions before 55. If you do, you’ll incur massive charges of 55% of your pension pot in addition to the scammers fees. In some cases you could lose all your money. There are only very limited circumstances when a pension can be accessed before 55, such as in the event of serious ill health.
Also watch out for offers of free pension reviews which come out of the blue and offers to help you move your money to a safe haven. Your money will probably be invested in high risk and unregulated investments or will disappear altogether.
Pension cold calls are illegal so if you get one just hang up, and ignore any offers via email, text or online adverts too.
All authorised firms are registered with the FCA so it is worth checking on the FCA’s Register in the event you are considering making any changes to your pension.
Doorstep scams
Not all scams are over the phone or online. There have been reports that scammers have been going door-to-door offering ‘coronavirus’ tests. To avoid being scammed in this way, ask to see the identity badge of anyone who comes to your door and claims to be from a company or organisation. If you’re not 100% comfortable don’t let them in, and don’t give away any financial information.
So, as well as staying healthy, please stay ‘financially’ safe.