The short version
General information, not advice
- Scammers impersonate trusted organisations
- Banks and police will never ask for full passwords or one-time codes
- Never send money due to pressure or secrecy
- Report fraud to your bank immediately
- Action Fraud is the UK's national reporting centre
Scams are getting better. Fraudsters impersonate banks, delivery companies, HMRC, police officers, investment firms, energy providers and even family members, and most of them work by putting you under pressure to act before you've had time to think.
In 2023–2024, billions of pounds were lost to fraud in the UK. Authorised Push Payment (APP) scams and impersonation fraud were among the most common.
This guide covers the most common scam types, the warning signs, what to do if you've been targeted, where to report fraud, and how reimbursement rules work.
This is general information, not legal advice.
Why scams work
Scams succeed because they exploit human psychology. A fraudster will manufacture urgency ("Your account will be closed today"), borrow authority ("This is the police fraud team"), play on fear ("You owe HMRC tax"), dangle excitement ("Guaranteed investment returns"), or build an emotional connection ("I love you, but I need help").
They often spoof phone numbers and email addresses so messages appear genuine, and a modern scam can look entirely professional.
Investment scams
Investment scams promise high returns with low or no risk. They take many forms: cryptocurrency "trading platforms", fake bond schemes, property investment abroad, carbon credit schemes, and clone firms pretending to be FCA-authorised.
The warning signs are consistent. Be wary of guaranteed returns, pressure to invest quickly, celebrity endorsements, being added to WhatsApp investment groups, or any request to move money off a legitimate platform.
Check the FCA ScamSmart warning list: https://www.fca.org.uk/scamsmart
FCA Consumer Helpline: Phone: 0800 111 6768 Email: consumer.queries@fca.org.uk
Authorised Push Payment (APP) scams
An APP scam happens when you are tricked into voluntarily sending money to a fraudster. You are persuaded to make the transfer yourself, which is what makes these scams so effective. Common scenarios include "safe account" scams from a fake bank fraud team, HMRC or police impersonation, conveyancing scams during a house purchase, invoice redirection, and romance scams.
As of October 2024, new reimbursement rules require most UK banks to reimburse APP scam victims up to £85,000, unless the customer acted with gross negligence.
If you suspect fraud, contact your bank immediately, ask them to freeze the payment, and request reimbursement under APP rules. Speed matters, so do not delay.
Phishing, smishing and vishing
These three are the same trick delivered down different channels: phishing by email, smishing by text, vishing by phone call. Typical tactics include fake parcel delivery fees, bank "security alerts", account suspension notices, and Netflix or Amazon subscription problems.
A genuine bank will never ask for your full password, ask for a one-time passcode over the phone, or ask you to move money to a "safe account".
Report suspicious emails to: report@phishing.gov.uk
National Cyber Security Centre: https://www.ncsc.gov.uk
Romance and social media scams
Fraudsters build a relationship online before they ask for money. The signs are familiar: they avoid video calls, claim to work overseas, ask for secrecy, and eventually request emergency funds. Never send money to someone you have not met in person.
Loan fee and debt relief scams
Fraudsters promise guaranteed loans or debt write-offs in exchange for an upfront fee. A legitimate lender does not charge upfront fees and must be FCA authorised.
Check the FCA Register: https://register.fca.org.uk
Energy and utility scams
Scammers offer fake energy rebates, claim your smart meter is faulty, or dangle "government grants". Always contact your supplier directly using official numbers.
What to do if you've been scammed
Contact your bank first. Ask them to freeze transactions and begin a fraud investigation. Then report it to Action Fraud, the UK national fraud reporting centre.
Action Fraud Website: https://www.actionfraud.police.uk Phone: 0300 123 2040
For independent advice, contact Citizens Advice.
Citizens Advice Website: https://www.citizensadvice.org.uk Phone: 0800 144 8848
Then protect your identity: change your passwords, enable two-factor authentication, and contact the credit reference agencies.
How to protect yourself
Most prevention comes down to slowing down. Use strong, unique passwords and turn on two-factor authentication. Never rush a financial decision, and verify any phone number independently rather than trusting the one in front of you. Treat unsolicited investment opportunities with suspicion, and don't click links you weren't expecting.
Reimbursement and complaints
If your bank refuses reimbursement, escalate to the Financial Ombudsman Service.
Financial Ombudsman Service Website: https://www.financial-ombudsman.org.uk Phone: 0800 023 4567 Email: complaint.info@financial-ombudsman.org.uk
The Ombudsman is free to use.
Key takeaways
- Verify before sending money
- Banks never ask for full passwords
- Report fraud quickly
- Use official contact numbers
Common questions
Can I get my money back after a scam?
Possibly. Under APP reimbursement rules, many banks must refund victims unless there was gross negligence. Act immediately.
What if I gave away my password?
Contact your bank immediately and change all passwords.
Are banks responsible for scam losses?
In many APP cases, yes — under new reimbursement rules.
Who investigates fraud in the UK?
Action Fraud collects reports. Police forces investigate cases.
How can I check if an investment is legitimate?
Search the FCA Register and ScamSmart warning list before investing.
Switch and support
Switch your everyday bills and direct commission to a UK cause.