Finance scams are becoming more common across the UK. Recent figures show that in 2024 there were around 3.31 million reported fraud incidents, an increase of about 12 per cent on the previous year.
These scams included bank fraud, investment fraud and online payment scams. Taken together, they resulted in losses of roughly £1.17 billion for consumers and businesses. This rise shows that criminals are becoming more active and more inventive, targeting people of all ages and backgrounds.
The increase in digital banking and e-commerce has given scammers more ways to reach people.
Fraudsters can use emails, text messages, phone calls and fake websites to trick victims into giving up money or personal information. Because technology is always changing, it can be hard to know what is safe and what is not. That is why understanding how finance scams work is an important first step in protecting yourself.
Finance Scams Targeting Consumers
As a consumer, you may receive messages claiming to be from your bank, a government department or a well-known company. These messages often ask you to click a link, enter personal details or make a payment. In many cases, they are fake, designed to steal your information or your money.
Vulnerable customers are often sent text messages and emails offering them guaranteed approval for loans – with their data likely stolen or purchased with bad intent. Victims are asked to pay money upfront, such as £50 or £100 for their loan to be granted, but any regulated lender in the UK will never ask for payment upfront. A typical loan is paid upfront by the lender and repayments are collected automatically via direct debit.
Authorised push payment (APP) fraud is one of the most common types of finance scams against individuals. In this scam, victims are persuaded to transfer money to a fraudster’s account, believing it is going to a legitimate person or business. Many victims only realise they have been scammed after the money has gone.
Online shopping and auction scams are also widespread. These often involve fake products or sellers that disappear after payment. Romance scams are another form of fraud, where fraudsters create fake profiles to build trust and then ask for money.
To protect yourself, always check who you are dealing with. Be wary of unsolicited messages, and do not click on links in texts or emails that you are not expecting. Use strong passwords and enable two-factor authentication wherever possible.
How Finance Scams Affect Businesses
Finance scams also pose serious risks for businesses of all sizes. According to recent surveys, fraud can cost UK companies around 7.4 per cent of their annual revenue, showing just how damaging scams can be to business finances.
Businesses may be targeted with fake invoices that look real but pay into the fraudster’s account. In fact, a man was jailed for generating millions in fake invoices that were getting paid by tech giants Facebook and Google, highlighting that even the largest companies can fall for a scam.
In the last year, phishing scams rose 600% and phishing emails may be sent to employees, trying to steal login details for company systems. Scam calls may impersonate trusted suppliers or partners, asking for urgent payments.
Employee training is one of the best defences against finance scams in business. Staff should be aware of how scammers operate, and know not to share passwords or transfer money without verifying requests. Keeping software up to date and using security tools also helps protect business systems from attacks.
Finance Scams: Staying Alert and Informed
Staying safe from finance scams means being vigilant. Always stop and think before responding to any request for money or personal information. If something feels wrong, it probably is.
Report any suspicious activity to your bank, and consider contacting relevant authorities so they can warn others and take action. Use official contact details rather than those supplied in a suspicious message.
By staying informed, checking information carefully and using sensible security habits, both consumers and businesses can reduce their risk of falling victim to finance scams. It is not possible to completely eliminate the threat, but awareness and good habits make a big difference.
