The huge rise in online communication, and our dependency on it, means that cybersecurity has become an increasingly important issue in recent years.

It’s likely that, like me, you’ve been subjected to many scam emails, texts, and phone calls – and you will have also heard about them from friends and relatives.

Given this, and the fact that June is “Scams Awareness Month”, read on to learn more about how scammers work, what to look out for, and how you can protect your hard-earned wealth.

How scammers work

Technology has made it easier than ever for scammers to target victims, and the tactics they use are becoming ever more sophisticated.

I’m sure you have often heard people say that scams are easy to spot. However, there is much evidence presented by cybersecurity experts that scammers are becoming increasingly sophisticated, and that many people each month are being taken in and stolen from.

For example, a common number appearing on your phone – maybe the number you recognise as being your bank – does not guarantee the call is coming from your bank at all.

Likewise, an email containing a link to a website might take you to a well-designed site using the language and branding of the original. But it’s actually bogus.

Opportunistic scammers take advantage of vulnerable people and situations, but even the most careful people have been duped and have lost substantial sums of money.

5 common scams you should be aware of

Here are five well-known examples of how you could be targeted by scammers and your cybersecurity could be threatened:

1. The investment opportunity

You will get a phone call, an email, or see an advertisement online offering you a “can’t miss” investment opportunity. It will promise a high guaranteed return.

A link will take you to a well-designed investment page, filled with more tempting sales information about the opportunity. In reality, it’s either completely bogus, or it’s a very high-risk investment that will pay the scammer an eye-watering amount of commission out of your money.

2. The “fraud alert” text message

You get a text message from your bank. It will ask you to click on a link so you can verify some recent activity on your account.

Once you click on the link you will be asked to put in your bank account details, and maybe even your password. You can guess what scammers will be able to do armed with that information.

3. The “phishing” email

This is very similar to the “fraud alert” text message. You’ll receive an email that looks perfectly legitimate. It may look as though it comes from your bank, or another financial company. It will include a link which will take you to a website asking for personal information, including your password.

4. The clone company “urgent” call

A clone firm involves scammers pretending to be from authorised firms to give you confidence. Usually, they will cold-call you, often at an inconvenient time when you might be tired.

So, you might get a call late one evening from someone saying they are calling from your bank’s call centre. They will say that they realise it’s out of hours, but they believe your online bank details are being targeted so are calling you urgently.

They will even give you a number to call them back on because “we realise you might think this is a scam call”. If you use the same phone that they have called you on, the number will go straight to them.

Once you’ve been taken in, it’s a simple step for them to get you to log into your online banking portal, and transfer money to another, fraudulent account.

Research from Santander revealed that nearly half of us would transfer money to a “safe account” in such circumstances.

5. The pension liberators

Thanks to an effective campaign run by some of my fellow financial advisers, pension cold-calling is banned. Sadly, this hasn’t deterred many scammers. 

You’ll get a call saying that they can help you access your pension fund before the usual minimum age – which is currently 55. They will, indeed, help you access your pension fund early, but there will be a substantial commission payable that could be as much as 30% of the amount you “liberate”.

On top of that, you will then get an “unauthorised payment” notice from HMRC charging you 55% of the total amount you’ve transferred – out of which you’ve already paid commission.

7 tips to protect yourself against scammers

Here are seven simple ways you can protect yourself from even the most determined scammers:

1. Keep your online-passwords secure and change them regularly. Don’t use the same password, or password format, for different sites.

2. Never put any personal details, including any passwords, on a website that you’ve been sent a link to.

3. Never click on links in text messages or emails from people you don’t know. Even if the message does come from a person or company you recognise, always check that the email address is legitimate and that you recognise it.

4. Be particularly vigilant when you’re shopping online. If you’re shopping from an online company that aren’t well known, do some research into them first. Check that their website is encrypted. It’ll have a padlock symbol next to the web address.

5. Use a virus protector on your computer or laptop and keep it up to date. Many now offer automatic updates, so ensure yours is switched on to that option.

6. If you do ever need to share your personal information online, such as your bank account details, split the information into two parts and use two different methods to send it.

7. Always be vigilant and, when it comes to financial offers, remember the golden rule – if something seems too good to be true it probably is.

Also help protect others, including your friends and family

One of the best ways to beat scammers is to publicise their methods. The more widely a certain scam is known, the less likely it is to be successful.

You could well have friends and family, particularly the elderly, who may not be as clued-up or aware of scams as you. So, try to make a point of letting them know about scams you hear about. Maybe even share this article with them!

Also spread the word more widely. If you see something on Twitter about a scam, retweet it. Likewise, share Facebook posts about scams. There’s a very useful government website where you can report scam emails and texts that you receive.

How I’m helping you with cybersecurity

I’ve found myself becoming increasingly security conscious when it comes to my dealings with you.

Email isn’t secure, and I know that, as a client, you may well be sharing personal information with me. So, I’ve started using a secure client communication portal called Moneyinfo for when I’m sending sensitive information.

By doing that, I know my communication with you is secure and you have the comfort that your financial details are only seen by those who need to.

Get in touch

To find out more about cybersecurity and financial scams, or if you’ve been offered an investment that you’d like to check is genuine, please get in touch.

Email graeme@macfp.co.uk or call 01349 832849.

Please note

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future results.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. 

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.