NatWest recently revealed that in the first half of 2024, scammers stole around £570 million from UK consumers, with the average Brit targeted more than four times a month. Barclays, meanwhile, confirms that 20% of us fell victim to a scam last year, with investment fraud accounting for £1 in every £3 lost.

The impact of scams can be financial and psychological too. Falling victim can leave you out of pocket but also with feelings of embarrassment or shame, maybe to such an extent that you don’t feel able to report the crime.

Barclays found that 52% of us admit to feeling overwhelmed by the different types of scams that exist, and the rise of technology – and in particular, AI – is only going to make this worse.

Thankfully, there are some red flags to look out for and some simple actions you can take to protect yourself, your family, and your business.

Keep reading to find out more.

1. Phishing, smishing, and spear-phishing

Phishing and smishing scams have existed for some time and they’re only becoming more sophisticated.

They’re a type of impersonation scam in which fraudsters make unsolicited contact through emails, texts, or WhatsApp. The message will purport to be from a trusted organisation like the police, the government, or your own GP and will usually include a link. Clicking on this link will release a virus or take you to a cloned site that might look genuine but is designed to harvest your data.

Advances in technology and AI are making these types of scams harder to spot.

These scams might seem generic but others could be more targeted. Scammers can now trawl through social media and other online spaces to find out information about you. This means that they can target you specifically with personal details that make the message seem genuine. This is known as spear-phishing.

Red flags to watch out for and precautions to take:

In the past, spelling and grammar mistakes would often stand out, especially when the message was supposed to be from a trusted source. The rise of AI, though, has meant that messages can be more technically accurate. The use of ChatGPT, for example, will likely mean spelling errors are kept to a minimum so you’ll need to look elsewhere for red flags.

Check on the official website of the organisation that is contacting you, preferably on a separate device. If it contains contact email addresses, are these in the same format as the email you’ve received? Does the company logo directly match and is the branding of the email in line with the website?

Contact the company directly to ask if they’ve contacted you and never click on links, even if you are only slightly suspicious.

2. “Hi mum” scams and the rise of voice cloning

One particular scam that is on the rise is known as a “Hi mum “or “Hi dad” scam. These usually take the form of urgent requests for money from scammers pretending to be your child or a loved one. They are particularly prevalent on WhatsApp.

The message will likely be urgent and could suggest that there’s an emergency that requires an immediate response. This is designed to fool you into acting quickly and without thinking.

Technology and AI are making these scams harder to spot too.

Firstly, spear-phishing might be used to make the message appear more genuine, by using your child’s name, say. Secondly, if your child has had their calls hacked, or posted lengthy videos to social media, it’s possible that their voice could be cloned.

Usually, and with current technology, around 30 minutes of audio is needed for high-level cloning, but a panicked voice note might be enough to stop you from thinking clearly.

Red flags to watch out for and precautions to take: 

Always be vigilant and suspicious of any unexpected contact. Speak to your partner or your child’s siblings to try to ascertain their whereabouts and call them directly using a different device. Check their social media too.

As a family, you might discuss a “safe phrase” to be used only in emergencies. Just be sure that this phrase isn’t written down anywhere, especially online.

Keep your own passwords safe and ensure they are strong, and so harder to hack. And use two-step verification where it is an option. This extra layer of security could be just enough to make fraudsters think twice.

If think that you’ve been scammed, be sure to report it to Action Fraud immediately. You might feel embarrassed to have fallen victim and not want to speak about it, but this only plays into the scammer’s hands. If a financial loss is substantial, reporting it is the first step to potentially recovering some, or all, of the lost money.

Get in touch

If you’d like to chat about keeping your money safe so that you can use it to make your financial dreams a reality, please get in touch at info@macfp.co.uk or call 01349 832849.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.