28 November 2024
This Black Friday and Cyber Monday, Quilter, the financial adviser, is urging people to have a heightened awareness of the scams targeting their money during this period and beyond.
Black Friday and Cyber Monday sales have soared in popularity in recent years, and it is estimated that on average Brits could spend £278 while taking advantage of the offers.
However, while there are genuine offers to be found, it is also prime time for fraudsters looking to take advantage of people during this period of high-volume spending and frenzied online activity.
New data from the Financial Ombudsman Service has revealed a marked uptick in fraud and scams cases, reaching the highest quarterly level. Consumers lodged 9,091 complaints within the three-month period of July to September 2024, up from 6,264 during the same period last year.
Such scams are often not only disguised as the sale of goods, but also appear as opportunities to invest your money.
Louise Cockburn, information security culture manager at Quilter, discusses some of the common ways fraudsters target people during the Black Friday and Cyber Monday period and beyond.
“Scams are a year round issue, but at this time of year fraudsters are particularly widespread. Black Friday is a highly anticipated event, but it is vital to be aware that scammers will seek to manipulate shoppers who are looking for the best deals.
“Scammers utilise several tactics and tap into our behavioural biases as shoppers to lure people into parting with their personal details or even sending money. Some of the key things to look out for include:
- A sense of urgency– This is one of the most common tactics used at this time of year. Fraudsters design offers that appear to be fleeting, pressuring shoppers to act quickly without thoroughly evaluating the legitimacy of the deal. Phrases such as ‘limited time offer’ or ‘only a few items left’ can be red flags. Making hasty decisions could prove costly, so you should always stop and take a moment to assess the offer critically before proceeding.
- Fear and anxiety– Scammers often incite fear by suggesting that failing to act immediately could result in negative consequences, such as missing out on a deal or facing account issues. Emails from retailers are rife at this time of year, but messages claiming that your account has been compromised and urging you to click a link to verify your information are common scams. You should always verify such claims by directly contacting the retailer or service provider through official channels.
- Greed and excitement– Scammers know that the allure of significant discounts can cloud judgement, so you should always question the authenticity of deals that offer products at prices well below market value. It is wise to compare prices across multiple trusted sources to validate the offer, and shop only from secure, official websites. You should always look for a padlock symbol in the address bar and verify that the URL starts with "https://". Secure connections protect your personal and financial information from being intercepted by malicious actors.
“While scammers will target those shopping for goods during this period, they also employ other tactics such as investment and pension scams. A recent storyline on BBC’s Eastenders, which formed part of its 2024 Scam Safe week programming, focused on Jean Slater becoming the victim of a sophisticated financial investment scam. The plotline highlights the real and growing threat of financial fraud, and particularly how scammers target more vulnerable individuals.
“Scammers’ tactics have grown increasingly sophisticated, and they regularly employ new methods aimed at getting people to pass over their personal details, or even to send them money. As covered by the BBC, the ‘forgotten pension pot’ is just one of the ways scammers have been known to lure people in.
“Much like being vigilant when looking for the best Black Friday deals, being able to spot an investment scam, whether pension focused or otherwise, is incredibly important. A few things to be on the lookout for include:
- Unsolicited contact via phone call, text message, email, or in person. If a company cold calls you out of the blue, this is a red flag which you should verify before taking any action. One way to do this is to check the FCA website to see if the company is registered, or to contact the company separately using the details listed on their official website.
- A firm that does not seem keen for you to call them back later.
- Situations where you are required to make a quick decision or feel pressured to act immediately.
- Contact details provided, or listed on their website, include only mobile phone numbers or a P.O. box address.
- An offer of high returns on your investment with assurances that it is low risk. Any offer that sounds too good to be true likely is.
“You should always verify the legitimacy of any financial opportunities using official channels such as the FCA website, and you must always keep in mind that any offer that seems too good to be true usually is.
“By staying vigilant, verifying information, and consulting trusted sources, we can protect ourselves and our loved ones from falling prey to fraudsters.
“If you suspect you or someone you know is being targeted by scammers, you should report it to the relevant authorities immediately. Early intervention can prevent further losses.
“How to report scams:
- Online: Contact Action Fraud if you think you have lost money or have been hacked because of an online scam or fraud, either on the Action Fraud websiteor call 0300 123 2040.
- Websites: report a suspicious website to the National Cyber Security Centre.
- Emails: forward scam emails to report@phishing.gov.uk. You can also select the ‘Report Spam’ button on Gmail, the ‘Report phishing’ button on Hotmail and send scam emails to abuse@yahoo.com on a Yahoo account.
- Facebook: select the three dots on the top right-hand corner of the ad and select ‘Report ad,’ before pressing ‘Misleading or scam’.
- Text messages: forward scam texts to 7726, a free reporting service provided by telecoms companies.
- Phone calls: you can also report scam calls to your mobile phone to 7726.”
