Beware of scams this April Fools’ Day
With April Fools’ Day just around the corner, we show you how to protect yourself against some of the most common financial scams out there.
We’ve probably all fallen for a harmless April Fools’ day prank at one time. However, plenty of us have also been the victim of more dangerous tricks at the hands of financial fraudsters.
According to government website Directgov, financial scam artists target 28 million UK customers every year and victims lose £1 billion.
Never give out your bank details…
You might think you’re too clever to give your financial details to a stranger but it’s easier than you might think.
‘Phishing’ is a kind of scam in which people receive an email supposedly from their bank, directing them to a website that asks for their account details.
These emails can look extremely professional so it’s easy to see why people are taken in. Remember, your bank will never send an email asking for this kind of information.
Find out all you can about companies that contact you
Any reputable company will include contact details in its communications with customers. If you can’t find a telephone number or postal address, alarm bells should start ringing. Furthermore, legitimate companies should be registered with the Financial Services Authority (FSA). If the company isn’t, you should probably stay clear.
Take care at the cashpoint
About five years ago I was the victim of a debit and credit card scam known as ‘cloning’ or ‘skimming’.
This is where a fraudster attaches a false front to a cashpoint – which reads your card’s information and transfers your account details electronically to the criminal. In my case, I didn’t realise I’d been scammed until £1,200 came out of my account to pay for a new laptop.
As I know from experience, ATM fraud is tough to spot. These fake fronts often appear extremely realistic and to make matters worse, many of us are in a hurry when we withdraw cash.
However, we should be vigilant at the ATM. If anything looks suspicious, do not insert your card and alert the company that owns the cashpoint.
Run a credit check
According to credit referencing agency Experian, it takes the average victim of identity theft more than 15 months to discover they’ve been scammed.
Perhaps the easiest ways to protect yourself against identity theft is by running a credit check through one of the country’s three agencies (Experian, Equifax and Call Credit). This will tell you if anyone has applied for credit in your name in recent months.
You can do this for free by signing up for a 30-day trial with Credit Expert (under Experian).
Be a cynic
It might be a cliché but you rarely get something for nothing. Why would a stranger want to give you thousands of pounds for free? Next time you receive an email offering you £100,000 for free, you should probably just hit delete.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
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