Fraudulent scams spiked during the pandemic, as more of us spent more time online.
Frauds reported to the UK police unit Action Fraud rose by a third in 2020, to the value of £2.3bn. Sadly the trend doesn’t look like it will be disappearing any time soon.
Scams come in all shapes and sizes, ranging from cold calling and texting to cyber fraud, and focusing on everything from insurance to pension and charity scams.
Fraudsters have used the promise of too-good-to-be-true investment returns, or ‘get rich quick’ schemes, as the basis for many scams over the years. But they also react to the world around them, targeting newer types of investments like cryptocurrencies.
Crypto crooks
Cryptocurrencies are extremely high risk and volatile in their own right. We don’t offer them at HL.
But you’ve probably seen plenty of news around crypto investments, like Bitcoin. Fraudsters will look to take advantage of this.
As with investment scams, cryptocurrency fraudsters often use social media, images of celebrities for promotion, or professional-looking websites to make themselves seem more legitimate.
Whether you’re 25 or 75, remember that any so-called opportunity promising sky-high returns is probably too good to be true. Do your research to make sure you’re not caught out.
Spot the signs – what to look out for
- Cold calls – beware of unexpected calls claiming to be your bank, HMRC, or another reputable company, like HL.
- Pressure to send payments – if anyone asks you…
