How to Protect Yourself from Financial Scams in the UK: Spot, Avoid and Report Fraud

Financial scams in the UK are on the rise — and they’re getting more sophisticated. Whether it's a fake bank message, a dodgy investment scheme, or a convincing phone call claiming to be from HMRC, criminals are finding new ways to trick people into handing over their money or personal data.

The impact of financial fraud can be devastating. But by learning how to identify and avoid scams, you can protect yourself and your money.

In this guide, we’ll explain the most common types of financial scams in the UK, red flags to watch for, how to respond if you’re targeted, and what to do if you’ve already been scammed.

Why Financial Scams Are a Growing Problem

Fraud now accounts for over 40% of all crime in the UK, according to the National Crime Agency. With more of our financial lives happening online — from banking to investing — criminals have more opportunities than ever to exploit vulnerabilities.

Scams can:

• Drain your bank account

• Damage your credit rating

• Steal your personal or financial information

• Leave lasting emotional harm

But with awareness and vigilance, most scams can be spotted and avoided.

Common Financial Scams in the UK

1. Phishing and Smishing (Text and Email Scams)

Scammers send emails or texts pretending to be from:

• Banks or building societies

• HMRC

• Royal Mail or courier companies

• The NHS or government departments

These messages usually include:

• A link to a fake website

• A request to confirm personal or banking details

• An urgent warning of a security breach

How to spot them:

• Check the sender’s email or number — is it official?

• Look for spelling errors or strange formatting

• Never click links in unexpected messages

MoneyHelper explains phishing and how to avoid it

2. Investment Scams

You're promised high returns — often through:

• Cryptocurrency investments

• Binary options

• Rare commodities (wine, gold, land)

Scammers may impersonate legitimate firms (known as clone firms) listed on the FCA Register.

Warning signs:

• Pressure to act quickly

• Unregulated platforms

• Promises of guaranteed or “risk-free” returns

• Being contacted out of the blue

Tip: Always check if a firm is FCA-authorised before sending any money.

3. Authorised Push Payment (APP) Scams

You’re tricked into voluntarily transferring money to a scammer, believing it’s a legitimate payment.

Examples:

• Paying a fake solicitor when buying a home

• Sending money to what you think is your bank or a relative

• Paying upfront fees for fake loans or jobs

These scams can be harder to recover from, as you willingly transferred the funds — but new rules mean banks must try to reimburse victims in many cases.

4. Romance Scams

Scammers create fake profiles on dating apps or social media, build trust over time, then ask for money due to an "emergency" or "investment opportunity".

Red flags include:

• Never meeting in person

• Excuses to avoid video calls

• Requests for money, gift cards or help with “fees”

Romance scams can lead to significant emotional and financial damage.

5. Remote Access Scams

A scammer calls pretending to be from:

• Your bank

• Microsoft or “technical support”

• A government agency

They convince you to:

• Download software

• Share security codes or banking passwords

• Hand over remote control of your device

Never give remote access to your computer unless you initiated the call and are sure the company is legitimate.

How to Spot a Scam: Key Warning Signs

Stay alert to anything that:

• Asks for personal or bank details unexpectedly

• Pressures you to act immediately

• Sounds too good to be true

• Claims to be urgent or threatens consequences

• Comes from an unfamiliar number or email

• Asks you to move money to a “safe account”

Trust your instincts — if something feels wrong, it probably is.

How to Protect Yourself from Financial Scams

1. Never Share Security Details

Banks, HMRC, and reputable companies will never ask for:

• Full PINs or passwords

• One-time passcodes

• To move money to a different account

2. Check Website URLs Carefully

Fraudulent websites often mimic genuine ones. Look out for:

• Misspellings or slight variations

• Lack of “https://” in the address

• Broken English or unusual layouts

3. Verify Contacts Independently

Don’t rely on links or numbers given in messages. Instead:

• Visit the official website

• Call customer service using a known number

• Log in to your account separately to verify

4. Use Multi-Factor Authentication (MFA)

Enable MFA on your bank, email, and investment accounts for added security.

5. Keep Devices Secure

• Install antivirus software

• Update your phone and computer regularly

• Avoid public Wi-Fi when accessing banking apps

6. Use Credit Cards for Extra Protection

Under Section 75 of the Consumer Credit Act, you may get a refund if you’re scammed buying something between £100 and £30,000 using your credit card.

Related article:  What Is Section 75 Protection on Credit Cards?

What to Do If You’ve Been Scammed

1. Contact Your Bank Immediately

The faster you act, the higher the chance of recovering your money. Ask your bank to:

• Freeze the transaction

• Investigate the fraud

• Reimburse you (if eligible)

2. Report the Scam

• Action Fraud (England, Wales, Northern Ireland): www.actionfraud.police.uk

• Police Scotland: Call 101

• Your bank (via its fraud line)

3. Report to the FCA

If you’ve been targeted by an investment scam or unauthorised firm, report it to the Financial Conduct Authority.

4. Contact CIFAS or Experian for Fraud Protection

You can request a protective registration to flag suspicious credit applications in your name.

Unique Insight: Use “Canary Words” to Test a Caller

If you receive a suspicious phone call, try using a canary word — an incorrect detail about your account or identity.

For example, say:

“So you're calling about my savings account at Lloyds?”

If they agree — and you don’t have a Lloyds account — it’s almost certainly a scam.

This technique can help expose fraudsters without giving away real personal information.

FAQs: Protecting Yourself from Financial Scams

What should I do if I clicked a suspicious link?

• Disconnect your device from the internet

• Run a virus scan immediately

• Change any passwords entered

• Contact your bank and monitor accounts for unusual activity

Will my bank refund me if I’m scammed?

Possibly — especially if you acted quickly. Under the Contingent Reimbursement Model Code, many UK banks will reimburse victims of APP scams if they took reasonable care.

How can I tell if a website is legitimate?

Check for:

• A valid SSL certificate (“https://”)

• A professional layout and language

• Company details, including address and FCA number

• Whether the firm appears on the FCA Register

Can scammers access my phone or computer?

Only if you grant them access — usually by downloading remote access tools or clicking malicious links. Never share access unless you're 100% sure of the source.

Is there a list of current scams?

Yes. Check:

• Action Fraud’s scam alerts

• Citizens Advice Scam Checker

• Your bank’s security centre for recent scam examples

Final Thoughts: Stay Vigilant and Don’t Be Embarrassed

Anyone can fall for a scam — even the tech-savvy. Fraudsters are professional, persuasive, and constantly evolving their tactics.

The most important things you can do are:

• Stay cautious and question anything that feels off

• Keep your financial and personal data secure

• Report any suspected scams, no matter how small

If you do fall victim, don’t stay silent. Reporting it not only helps protect you — it can stop others from being scammed too.

You can check the legitimacy of any firm or adviser via the FCA Register and use the MoneyHelper budgeting tool to keep on top of your finances.

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Please note:  All content on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Always seek guidance from a qualified financial adviser before making any financial decisions.