Paul Telford
From missed call scams to tax scams, inheritance scams to HMRC scams, the number and frequency of financial services scams continue to be on the rise.
In this article, we look at some of the most common scams, how to stay safe and what to watch out for.
At its most basic level, a scam is something which appears at first glance to be legitimate but is in fact a way to trick people out of money or personal details which can then be used to steal their money.
With advances in technology, these scams have become increasingly sophisticated, harder to identify and more difficult to avoid.
Scammers use a range of different media from phone calls to messaging apps to target potential victims.
They also employ time pressures such as fake deadlines to encourage people to act before thinking.
Scams can take many forms – here are some of the most common to watch out for:
This is where scammers pose as representatives from legitimate organisations like the Financial Conduct Authority (FCA), banks, or government bodies to gain trust and access sensitive information.
They often send official-looking emails complete with logos and contact details in order to fool the recipient.
FCA scams in particular are becoming more prevalent – the authority received almost 5,000 fake FCA scam reports in the first half of 2025.
One of the most FCA scams to watch out for is fraudsters claiming the FCA has recovered funds from a cryptocurrency wallet opened illegally in the potential victim’s name.
Another FCA scam sees fraudsters claiming a County Court Judgment has been taken out against a potential victim who then needs to pay the FCA the monies owed.
Fraudsters can also pose as representatives of HMRC in an effort to carry out tax scams.
One such common tax scam is an HMRC email offering either a tax refund or requiring the payment of additional tax.
Investment opportunities that seem too good to be true invariably are.
Investment scams commonly offer high returns, guaranteed returns or a combination of the two.
Fraudulent investments often involve overseas territories or property investments with an alluring brochure.
Scam cryptocurrency investments are also on the rise as fraudsters use new technology to convince people to part with their money.
Fraudsters also use fake endorsements from well-known business people or TV personalities as a way of scamming victims. MoneySaving Expert founder Martin Lewis consistently issues scam warnings, most recently highlighting deepfake AI videos promoting fake investment schemes and cryptocurrency. He also calls out fake adverts, cold calling, and imposters claiming to work for him.
This is a common tactic used in financial services scams where people receive emails apparently from a trusted source. This can include from people at your workplace or from people you know.
These phishing emails prompt the victim to click on a link and enter login details or personal information.
Fraudsters also use phishing in apps and social media platforms. Here they ask for login details to access your account to read a story or look at a picture.
This scam is similar to phishing, but this time, fraudsters use phone calls to try to extract personal details or convince you to transfer money.
Common vishing scams include messages claiming the unauthorised use of bank or credit cards for Amazon purchases, voicemail scams and missed call scams.
Other financial services scams which use vishing include fraudsters posing as representatives from financial institutions offering access to new investments or savings accounts. It is also common for fraudsters to alert you to a fake fraud and ask you to move money to a different account “for safety”.
Vishing scammers can also pose as representatives of government bodies and law enforcement agencies.
This is a particularly unpleasant form of scam where fraudsters target a vulnerable person and build trust over time.
A fraudster will not ask for money or personal details straight away but will work to gain the trust of the potential scam victim.
Only when this has happened will the fraudster make their move and carry out their scam.
This is known as ‘pig butchering’ as it likens the process to a pig being fattened up prior to being butchered.
Pig butchering scams rely on a relationship being built up so they often take place in arenas like dating apps or websites.
As well as losing money, victims of these scams often feel they have lost valuable relationships as well.
While fraudsters are becoming more sophisticated in the way they target victims, there are some useful rules you can follow to help combat scams.
Always take a moment to stop, think and challenge any suspicious requests.
Legitimate business representatives will not be offended or put off if you challenge what they ask for. Fraudsters may move on to the next potential victim.
If you’ve been targeted, always contact the relevant authorities so they can trace the fraudster and warn others.
If someone urges you to complete something quickly or tries to introduce other time pressures, that can be a sign of a scam. Ask why there is such a need for speed.
In a similar vein, be sceptical of investment ‘opportunities’ with high returns and a very limited time to ‘take advantage of’.
If you’re contacted unexpectedly by a financial firm, do not use the contact information they provide. Instead, find their official contact details on the FCA website or the Firm Checker and get in touch directly.
It’s also a good idea to carefully check email and website addresses. Fraudsters often use addresses that look convincing but have one letter out of place or an unusual ending such as ‘fcaonline’ or ‘fcagroup’.
It is really important to report any suspected financial scams to Action Fraud (the National Fraud & Cyber Crime Reporting Centre) and the FCA, as this helps them warn others and to monitor fraudulent activity.
Both Action Fraud and the FCA issue regular updates about scams, as well as hosting resources on how to beat the fraudsters.
Check out the FCA’s Fake FCA Communications page and Action Fraud’s Prevention page for more information and tips.
Staying safe from financial services scams is an important part of maintaining your financial health and welfare.
Some of the key things to watch out for to stay safe are:
At Fairstone, we have partnered with the Regional Economic Crime Coordination Centre (RECCC) to help raise scam awareness and safeguard the financial wellbeing of our clients and staff.
For more information on our approach, please click here.
To talk to one of our advisers, please get in touch.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. Always seek professional advice before making financial decisions.
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