Stay Safe from Scams: Your Essential Guide to Spotting Digital Fraud

Thursday 10 July, 2025

At Lonsdale, we believe that protecting your finances goes beyond sound investment advice, it’s also about staying informed. Sadly, financial scams are becoming more advanced, targeting everyday people in increasingly convincing ways.

That’s why we’ve put together this helpful guide explaining some of the most common types of fraud you may come across, from phishing and vishing to cryptocurrency cons and safe account scams. We'll show you how to recognise the warning signs, what actions to take, and where to report suspicious activity.

Whether you're receiving a suspicious message, call, or email, or simply want to know more about how fraudsters operate, this guide will help you stay vigilant and safeguard your financial wellbeing.

Spotting the Signs: The Most Common Types of Scams and What You Can Do

Phishing: Emails That Pretend to Be Genuine

Phishing emails often appear to come from trusted organisations like your bank, HMRC, Amazon, or PayPal. They may warn you of suspicious activity on your account or say it's been locked, prompting you to click a link to log in.

However, these links lead to fake websites designed to steal your personal information. Some emails may also include attachments that install harmful software on your device.

How to spot it:

Generic greetings such as “Dear Customer” rather than using your name.
Suspicious sender addresses with odd spellings or random numbers.
Urgency in tone, pushing you to take action quickly.

What to do:
Never click on links or download attachments in emails you’re unsure about. Go directly to the organisation’s official website instead. You can report phishing attempts to Action Fraud and some official bodies, such as HMRC, have dedicated reporting email addresses.

Vishing: Fraud Over the Phone

Vishing, short for ‘voice phishing’, involves scammers calling and pretending to be from your bank, building society or a government department. They’ll pressure you into revealing sensitive details or transferring money.

Fraudsters may use number spoofing to make their call appear genuine on your caller ID.

How to spot it:
If the caller is pushy or asks you to move money or share private information, it’s likely a scam.

What to do:
Hang up immediately. Then call your bank using the number on the back of your card, ideally from a different phone or after waiting a few minutes to ensure the line has cleared.

Smishing: Text Message Scams

Smishing uses text messages that look like they’re from your bank or service provider. The message may claim there's a security issue and direct you to click a link or call a number. These fake numbers connect you to scammers who will try to extract personal information.

How to spot it:
Look out for strange numbers or links. Some messages may even appear in an existing text chain if your number has been spoofed.

What to do:
Do not click on any links. Contact your provider directly using the number on your card or their official website.

Authorised Push Payment (APP) Fraud

This scam involves you being tricked into transferring money to a fraudster posing as a legitimate business, often during high-stress situations like buying a house or paying a contractor. You may receive emails or texts that seem to be from your solicitor, builder, or even a friend or family member asking for money.

How to spot it:
You may be expecting to make a payment, which makes the message seem believable. But any change in bank details or requests for urgent payments should raise alarm bells.

What to do:
Always verify bank details directly with the organisation before making a payment. If you’ve sent money to a scammer, contact your bank immediately.

As of 7 October 2024, new FCA rules mean banks must refund victims of APP fraud (minus an optional £100 excess) within five working days for payments made via Faster Payments or CHAPS. Claims must be made within 13 months of the last payment. The maximum claim amount is £85,000.

Safe Account Scams

You may get a call from someone claiming to be from your bank or even the police, saying your account has been compromised. They'll urge you to transfer your money into a ‘safe account’, which is actually controlled by them.

How to spot it:
No bank or police officer will ever ask you to move your money into a different account.

What to do:
Hang up immediately and call your bank using the trusted number on your card. If you’re in any doubt, dial 159, a dedicated fraud-check hotline that connects you directly to your bank’s fraud team.

Investment and Pension Scams

Fraudsters may use fake websites, cold calls, or messages on social media to offer high-return investment opportunities. Cryptocurrency and pension investment scams are particularly widespread, especially since 2015 pension freedom reforms.

How to spot it:

Unsolicited contact, especially from strangers.
Promises of guaranteed returns or low risk.
Being rushed into making a decision.

What to do:
Always verify firms and advisers using the FCA register and check for warnings on the FCA ScamSmart site. You can also verify companies via Companies House. Report suspected scams to the FCA, Action Fraud, or Police Scotland. If you’ve lost money, contact your bank and report the incident to Action Fraud on 0300 123 2040.

Cryptocurrency Scams

Cryptocurrency scams are often linked to fake investment platforms or endorsements, especially via social media. The digital nature of cryptocurrencies makes them harder to trace, and scammers know this.

How to spot it:
Any unsolicited contact promoting cryptocurrency investments should be treated with suspicion, particularly if high returns are promised.

What to do:
Check platforms and advisers on the FCA register and avoid investments that don’t allow time for due diligence.

Loan Fee Fraud

If you’re looking for a loan online, be cautious of companies asking for an upfront fee before releasing funds. Once the fee is paid, the loan never materialises.

How to spot it:
Requests for fees paid in unusual formats (e.g., gift cards or money transfer services) are major red flags.

What to do:
Confirm a lender’s legitimacy on the FCA website.

Taking Action and Getting Help

If you think you’ve been targeted by a scam or want to report suspicious activity, visit the Action Fraud website or contact Victim Support for assistance. Always inform your bank immediately if money has been taken or if you’ve revealed sensitive information.

In Summary

Being vigilant is your first defence in a world where scams are becoming harder to spot.

Whether you're investing, moving money, or just reading an email, taking a moment to verify can make all the difference. And remember, if something doesn’t feel right, it probably isn’t.

Stay safe, stay informed, and don’t hesitate to reach out for advice or support.

Need financial planning advice?

If you would like a free initial financial planning review, complete the form below, or contact our St Albans, Barnet, Harpenden, Leeds & Bradford, Stafford, Ringwood, Ware, Wimbledon or Chippenham office.