Scam

Psychic and clairvoyant scams

15 December 2020 0 Comments

The apparently psychic or clairvoyant fraudsters approach their victims by email, post, telephone call or even face-to-face.

Psychic and clairvoyant scams happen when a fraudster approaches you to tell you they have seen something either wonderful or terrible in your future.

They ask for money in order to provide a full report about it or tell you that you need to purchase a ‘lucky’ charm for protection?

They may tell you that you are in some kind of trouble, but can offer a solution in return for payment. They may claim to be able to give you winning lottery numbers, or offer to remove a curse.

Fraud has been committed if money has been lost.

Action Fraud
www.actionfraud.police.uk/a-z-of-fraud/clairvoyant-scams

Scam

Lottery/prize draw scams

10 December 2020 0 Comments

Lottery scams are usually committed by email or letter, but fraudsters may approach you by other means.

Lottery, sweepstake or prize-draw fraud happens after fraudsters contact you to tell you you’ve won a large sum of money in an international lottery, sweepstake or other prize draw.

You’re told that you have won a large amount of money on an overseas or online lottery. Spanish, Canadian and Australian lotteries are among the most common.

So that you can process the payment of your winnings, it asks you to contact someone who claims to be an official at the lottery company. You are warned to keep your good luck a secret and, if you don’t respond quickly, you won’t be able to claim your winnings.

However, either the lottery doesn’t exist or you’ve been contacted by fraudsters misusing the name of a genuine lottery. But you can be sure there is no prize money for you to win. If you respond to the fraudster, you’ll be asked to supply personal information and copies of official documents, such as your passport, as proof of identity. The fraudsters can then use this information to steal your identity.

Once you have provided your personal information, the fraudsters will ask you to pay various fees – for example: taxes, legal fees, banking fees etc. – so that they can release your non-existent winnings.

Each time you make a payment, the fraudsters will come up with a reason why your winnings can’t be paid out unless you make another payment. They’ll also give you reasons why the fees can’t be taken out of your winnings and have to be paid upfront.

The fraudsters may also ask for your bank details, saying they will pay your winnings directly into your bank account. But if you hand over your bank details, the fraudsters will use them to empty your account.

Are you a victim of lottery fraud?

  • You receive an official looking email or letter telling you that you’ve won a large sum of money in a lottery.
  • You’ve responded to the email/letter and supplied personal information.
  • You’ve paid a fee to release your winnings.

What should you do if you’re a victim of lottery fraud?

  • Report the fraud to Action Fraud.
  • If you have responded to the email/letter, break off all contact with the fraudsters at once.
  • If you have given the fraudsters your bank account details, alert your bank immediately.
  • Be aware that you’re now likely to be a target for other frauds. Fraudsters often share details about people they have successfully targeted or approached, using different identities to commit further frauds.
  • People who have already fallen victim to fraudsters are particularly vulnerable to the fraud recovery fraud. This is when fraudsters contact people who have already lost money through fraud and claim to be law enforcement officers or lawyers. They advise the victim that they can help them recover their lost money – but request a fee.

Protect yourself against lottery fraud

  • Never respond to any such communication. If you haven’t entered a lottery then you can’t have won it.
  • Official lotteries in other countries operate in much the same way as the UK’s National Lotto.  No official lotteries that we know of contact people to tell them of their win.
  • We don’t know of any official lottery operators who ask for fees to collect winnings.  Any request for a fee payment is a good indication that someone is trying to defraud you.
  • Never, ever disclose your bank details or pay fees in advance.
  • If they’ve provided an email address to respond to, be very suspicious of addresses such as @hotmail.com or @yahoo.com or numbers beginning with 07 because these are free to get hold of.
  • Genuine lotteries thrive on publicity. If they ask you to keep your win a secret it’s likely to be a fraud.
  • Many fraudulent lotteries have bad spelling and grammar – see this as a warning that fraudsters are at work.

Action Fraud
https://www.actionfraud.police.uk/a-z-of-fraud/prize-draw-scams#:~:text=Lottery%2C%20sweepstake%20or%20prize%2Ddraw,an%20overseas%20or%20online%20lottery.

Scam

Pension Scams

7 October 2020 0 Comments

How pension scams work

Scammers usually contact people out of the blue via phone, email or text, or even advertise online. Or they may be introduced to you by a friend or family member who is also unknowingly being scammed.

Scammers will make false claims to gain your trust. For example:

  • claiming they are authorised by the FCA or that they don’t have to be FCA authorised because they aren’t providing the advice themselves
  • claiming to be acting on the behalf of the FCA or the government service Pension Wise.

Scammers design attractive offers to persuade you to transfer your pension pot to them (or to release funds from it). It is then often invested in unusual and high-risk investments like overseas property, renewable energy bonds, forestry, storage units, or simply stolen outright.

Scam offers often include:

  • free pension reviews
  • higher returns – guarantees they can get you better returns on your pension savings
  • help to release cash from your pension even though you’re under 55 (an offer to release funds before age 55 is highly likely to be a scam)
  • high-pressure sales tactics – the scammers may try to pressure you with ‘time-limited offers’ or even send a courier to your door to wait while you sign documents
  • unusual investments – which tend to be unregulated and high risk, and may be difficult to sell if you need access to your money
  • complicated structures where it isn’t clear where your money will end up
  • arrangements where there are several parties involved (some of which may be based overseas) all taking a fee, which means that the total amount deducted from your pension is significant
  • long-term pension investments – which mean it could be several years before you realise something is wrong

4 simple steps to protect yourself from pension scams

Step 1 – reject unexpected offers

  • If you’re contacted out of the blue about a pension opportunity, chances are it’s high risk or a scam.
  • If you get a cold call about your pension, the safest thing to do is to hang up – it’s illegal and probably a scam. Report pension cold calls to the Information Commissioner’s Office (ICO) (link is external).
  • Be wary if you’re contacted about any financial product or opportunity and they mention using your pension.
  • If you get unsolicited offers via email or text you should simply ignore them. Fortunately, most people do reject unsolicited offers – FCA research suggests that 95% of unexpected pension offers are rejected.
  • Be wary of offers of free pension reviews. Professional advice on pensions is not free – a free offer out of the blue (from a company you have not dealt with before) is probably a scam.
  • And don’t be talked into something by someone you know. They could be getting scammed, so check everything yourself.

Step 2 – check who you’re dealing with

  • Check the FCA Register to make sure that anyone offering you advice or other financial services is FCA authorised.
  • If you don’t use an FCA-authorised firm, you also won’t have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) so you’re unlikely to get your money back if things go wrong. If the firm is on our Register, call our Consumer Helpline on 0800 111 6768 to check the firm is permitted to give pension advice.
  • Check they are not a clone – a common scam is to pretend to be a genuine FCA-authorised firm (called a ‘clone firm’). Always use the contact details on our Register, not the details the firm gives you.
  • Check to see if they are registered with Companies House and for the names of the directors. Search the company name and the names of the directors online to see if others have posted any concerns.
  • Check the FCA Warning List – use this tool to check the risks of a potential pension or investment opportunity. You can also search to see if the firm is known to be operating without our authorisation.

Step 3 – don’t be rushed or pressured

Take your time to make all the checks you need – even if this means turning down an ‘amazing deal’. Be wary of promised returns that sound too good to be true and don’t be rushed or pressured into making a decision. 

Step 4 – get impartial information or advice

You should seriously consider seeking financial guidance or advice before changing your pension arrangements.

  • The Pensions Advisory Service provides free independent and impartial information and guidance.  
  • If you’re over 50 and have a defined contribution pension, Pension Wise offers pre-booked appointments to talk through your retirement options.
  • You can also use a financial adviser to help you make the best decision for your own personal circumstances. If you do opt for an adviser, make sure they are regulated by the FCA and never take investment advice from the company that contacted you, as this may be part of the scam. Find out more about getting financial advice

If you suspect a scam, report it

If you have been a victim of this type of fraud, report it to Action Fraud by calling us on 0300 123 2040 or by using our online reporting tool.

  • Report to the FCA – you can report an unauthorised firm or scam to the FCA by contacting their Consumer Helpline on 0800 111 6768 or using our reporting form. 
  • You can report nuisance calls and messages to the Information Commissioner’s Office using their online reporting tool or by calling 0303 123 1113.
  • If you’ve agreed to transfer your pension and now suspect a scam, contact your pension provider straight away. They may be able to stop a transfer that hasn’t taken place yet. If you are unsure of what to do contact the Pensions Advisory Service) for help. 
  • If you have already invested in a scam, fraudsters are likely to target you again or sell your details to other criminals. The follow-up scam may be completely separate or related to the previous fraud, such as an offer to get your money back or to buy back the investment after you pay a fee.
References:

Pension Scams, Action Fraud,
https://www.actionfraud.police.uk/a-z-of-fraud/pension-scams

Avoid pension scams, The Pensions Regulator, https://www.thepensionsregulator.gov.uk/en/pension-scams

How to avoid pension scams, The Financial Conduct Authority, https://www.fca.org.uk/scamsmart/how-avoid-pension-scams

How to avoid a pension scam, The Pensions Advisory Service, https://www.pensionwise.gov.uk/en/scams

Investment Scam, Pension Scam, Scam