Fraud and Scams on the Rise: How to Stay Protected in 2024

Fraud and scams continue to surge, with over 8,734 complaints filed with the Financial Ombudsman Service (FOS) in Q1 2024—a 37% increase from the previous year.

Authorised Push Payment (APP) Scams

APP scams are a major concern, accounting for over half of all complaints to the FOS. In 2023, these scams cost the UK £460 million. APP scams involve fraudsters tricking victims into transferring money or sharing personal information by pretending to be legitimate businesses or government bodies.

Common signs of a scam:

• Too-good-to-be-true offers: Unrealistically low prices to tempt you.
• Unusual Communication: The fraudster’s correspondence may differ from the impersonated entity’s typical correspondence. Always check to see if any of the following feature in the communication you receive;
  • strange email domains, phone numbers, or poorly written messages.
• High-Pressure Tactics: Urgency to act quickly.  From exclusive limited-time offers to warnings that inaction could lead to negative consequences. If you have any doubts, research the seller.
• Odd Payment Methods: Requests for unverified or unusual payment types. Contact the company directly to double-check.
• Requests for Personal Info: Legitimate companies never ask for sensitive details via email or text.  Banks never ask you to move money into another account. If they do, it’s not your bank, it’s a scam. Hang up and then alert your bank of the attempt.

What do I do if I have been scammed?

If you fall victim to a scam, take these steps immediately:

1. Contact your bank to block or trace the transaction.
2. Report the scam to Action Fraud, run by the City of London Police.
3. The Payment Systems Regulator (PSR) requires banks to refund victims of APP scams up to £85,000.

Some banks’ refund record is better than others with Monzo only fully-refunding 6% of their customers’ APP scam cases, compared to Lloyds’ 49%.

If your bank is unhelpful, you can file a complaint with the Financial Ombudsman Service to potentially recover your losses.

If you are worried about APP scams, please don’t hesitate to contact us on 01903 534587.