thewisequid.

How to spot and avoid financial scams

Last updated:

Scams have moved on. The dodgy spelling and obvious lies are gone; today’s fraud looks like a real text from your bank, a real-sounding phone call, a real-looking website. Anyone can be caught — being scammed says nothing about how clever you are. The good news is that a handful of simple habits stop almost all of it, and if you are caught, your rights are stronger than they used to be.

This is information, not financial advice. If you think you’ve been scammed, contact your bank immediately and report it to Action Fraud (details below).

The one rule that beats most scams

Nearly every scam relies on the same trick: contacting you out of the blue and creating urgency so you act before you think. So the single most powerful habit is this — treat any unexpected message about money as a scam until you’ve proved otherwise, and never let anyone rush you.

Real organisations don’t mind you hanging up to check. Scammers hate it, because checking is what breaks the spell.

The red flags

If a call, text, email or message ticks any of these, stop:

  • It’s unexpected, and it’s about money, an account, a delivery, a fine or a refund.
  • It’s urgent — “act now”, “your account will be closed”, “we’ve detected fraud”.
  • It asks you to move money to a “safe account”, or to pay to release a prize, refund or parcel.
  • It asks for a code, password or PIN — a one-time passcode, or your card reader numbers. No genuine firm will ever ask for these.
  • It wants an unusual payment method — a bank transfer, gift cards, cryptocurrency.
  • The story is emotional — a romance, a “stranded” relative, an “investment” a friend swears by.

None of these on its own proves a scam — but any of them means slow down and check.

The scams to know by name

  • The “safe account” scam (bank impersonation). Someone claiming to be your bank or the police says your money is at risk and you must move it. Your bank will never ask you to do this. This is the big one.
  • Phishing and smishing. Emails or texts (a missed delivery, an unpaid toll, a tax refund) with a link to a fake login page that steals your details.
  • Purchase scams. Too-good-to-be-true items on marketplaces or social media — you pay by bank transfer and nothing arrives.
  • Investment scams. “Guaranteed” high returns, often via slick websites or celebrity-faked ads. If it sounds too good to be true, it is.
  • Romance scams. A relationship built online that eventually needs money.

Two free tools worth knowing

  • Dial 159. A safe shortcut that connects you directly to your own bank’s fraud line — like 101 for the police. If you ever get a call claiming to be your bank, hang up and dial 159 to reach the real one.
  • Forward scam texts to 7726. It spells “SPAM” on your keypad, it’s free, and it helps networks block the sender. Forward scam emails to report@phishing.gov.uk.

If you’ve been scammed — act fast

  1. Tell your bank immediately — use the app, your card’s number, or 159. The sooner you report, the better the chance of stopping or recovering the money.
  2. You may well get your money back. Since October 2024, banks must reimburse most people who lose money to an authorised push payment (bank transfer) scam, up to £85,000, usually within five working days. Reporting quickly and honestly gives you the strongest claim.
  3. Report it to Action Fraud (0300 123 2040 or actionfraud.police.uk), or Police Scotland on 101. Reporting helps catch the fraudsters even when you can’t get money back.
  4. Change passwords on any account that may be exposed, and watch your statements.

Building scam-proof habits

You don’t need to be suspicious of everything — just consistent about a few things: never act on an unexpected contact, never share a code, always check using details you look up, and never be rushed. Share these with the people in your life who scammers target most, especially older relatives.

Being targeted isn’t your fault, and being caught isn’t shameful — but a few seconds of “let me check that” is the cheapest insurance in personal finance.

Last checked 31 July 2026. The mandatory reimbursement rules (up to £85,000) have applied since 7 October 2024; report to your bank as soon as you can.

Sources

Just so you know: this guide is information and journalism, not financial advice, and we don't recommend specific financial products. Your circumstances are your own — if you need personal advice, speak to a suitably qualified adviser. Information was correct at the "last updated" date above but things change; always check the linked primary sources.

← More Everyday money guides