Finding ways to protect your wealth is an important part of financial planning. This often involves using strategies to generate growth that beats inflation, for example. You may also want to create an estate plan to help you mitigate Inheritance Tax (IHT).
However, it is equally important to consider how you keep your wealth safe from scammers, as unfortunately, there are criminals out there using advanced methods to try and get hold of your cash.
Martin Lewis, the popular consumer champion, recently warned of a “deepfake” scam using his own likeness. Scammers created an incredibly lifelike video imitation of Lewis, encouraging consumers to put their wealth into a new investment.
Of course, there was no investment opportunity and those who followed the fake advice lost significant sums of money.
This is just one example of an impersonation scam, where criminals pretend to be a trustworthy figure, institution, or even family member to convince you to willingly part with your cash.
UK consumers lost £177.6 million to impersonation scams in 2022
There are several ways that criminals might use impersonation scams to gain access to your wealth or sensitive personal information.
They might imitate your bank or the police, warning about potential fraud and pressuring you to move your savings into a “safe” account. Alternatively, they could message you claiming to be a family member in an emergency who needs money in a hurry.
Perpetrators may be able to copy phone numbers so the call appears to come from a trusted source. Fake emails can also look incredibly convincing, so it’s easy to fall victim to these scams.
Indeed, according to MoneyAge, UK consumers lost £177.6 million to impersonation scams in 2022.
Fortunately, if you are vigilant and you know some of the key signs to look out for, you can protect yourself.
Read on to learn some common ways to spot impersonation scams.
Beware of information you find on social media
Scammers often use social media to contact potential victims, particularly when trying to promote a false investment. It’s easy for them to make fake accounts and pretend to be somebody else.
If you see a video of a so-called “expert”, for example, you may think that you can trust their investment tips. However, the recent stories about deepfake scams involving Martin Lewis proved that this isn’t necessarily the case.
It’s also worth noting that even if it is not an impersonation scam, online investment insights do not consider your own unique situation, so they may not necessarily be suitable for you.
Generally, it is sensible to question any information that you see on social media and consider whether the source is reliable.
Time pressure is a common sign of a scam
Scammers don’t want you to take time to consider the situation carefully and double-check the validity of any information they give you. That’s why they often use time pressure to force decisions.
For instance, they may send a message using the phone number of a friend or family member, asking you to transfer funds in a hurry to help them out of a bad situation.
Time pressure is also common with investment scams as you will be warned that you could miss out on huge gains if you don’t act quickly.
It’s important to not give in to this pressure and instead take the time to check whether you are speaking to the person or institution you think you are. For instance, if you receive a message from a family member, simply call them to double-check it was really them.
When you receive a call claiming to be from your bank and you are unsure, you can hang up and call 159 to be reconnected securely. Most major UK banks are part of this scheme. Also, bear in mind that banks or the police will never ask you to move funds to a “safe” account to protect you from fraud.
Scammers may make careless mistakes in fake emails
Fake emails claiming to be from your bank or another trusted organisation can be very convincing. That said, scammers often make careless mistakes that give them away.
They might make spelling or grammar errors, for instance. Sometimes, the email address they use doesn’t match the real institution either.
Check for these small inconsistencies that suggest you are communicating with an impersonator before taking any action. It’s also a good idea to avoid clicking any links in an email and log in to online accounts directly instead.
Seeking professional guidance is often the safest option
Whenever anybody tells you what you should be doing with your money, it’s vital that you ask yourself whether you can trust them.
Typically, if that guidance comes from a professional financial planner who you have consulted yourself, you can be sure that they are acting in your best interests.
Conversely, if you find information online, even if it appears to be from a trusted source, or you get an unexpected phone call or email, you risk falling victim to a scam.
That’s why it’s often best to focus on your own financial plan and work with a professional instead of listening to outside noise.
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Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investments (and any income from them) 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. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.