The FCA has warned people to be alert to a potential surge in Coronavirus-related scams.
When it comes to financial services, the scam activity can appear after the initial shock of the event, so the FCA is urging consumers to be vigilant for scams that could appear over the coming months.
Scammers are sophisticated, opportunistic and will try to get personal details or money from victims in many ways, targeting those who are more vulnerable.
The FCA’s advice on tactics to look out for includes:
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Those exploiting short-term financial concerns, scammers may ask you to hand over an upfront fee – usually between £25 and £450 – when applying for a loan or credit card that you never get. This is known as loan fee fraud or advance fee fraud.
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‘Good cause’ scams. This is where investment is sought for good causes such as the production of sanitiser, manufacture of personal protection equipment (PPE) or new drugs to treat coronavirus – with scammers using the promise of high returns to entice consumers.
The FCA’s advice on how to protect yourself includes:
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Use the Financial Services Register and Warning List to check who you are dealing with.
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Reject offers that come out of the blue.
See the advice in full on the FCA website.
It is possible to report the firm or scam to the FCA by contacting its Consumer Helpline on 0800 111 6768 or using the online reporting form.
