Trade Advice Document

This guidance is for England, Scotland and Wales

Each year many people are targeted by criminals (sometimes operating from overseas) intent on stealing their money, personal and financial information. If you receive an unexpected phone call, be on your guard as it may be a scam. Scams take many different forms but a common route used by criminals to contact victims is the 'cold call'. The criminals will sound convincing, professional and claim to represent a business you know, such as your bank or an official organisation. They may pressure you to act quickly, either because they want to trick you into believing you will miss a golden opportunity to make money or that you will suffer some sort of loss.

Never give personal or financial information out to anyone who cold calls you; be cautious and if in doubt, hang up.

It's important to remember that all scams are fraud and therefore a crime. Some common scams are listed below.

COMPUTER VIRUS SCAM

You may be targeted by cold callers pretending to represent a well-known software company offering to fix what is, in reality, a fake computer problem. The criminals' aim is to trick you into believing that your computer has a serious virus problem and that you need to act immediately or it will become unusable. You will be shown so-called 'errors' on your computer in the hope that you will be frightened into allowing the criminal to remotely access your computer to fix the problem.

At this point, the criminal takes control of your computer and then requests payment of a fee to carry out repairs. There is no genuine fault so you end up paying for an unnecessary repair or bogus software. You may have left yourself exposed to identity theft as your computer could have been deliberately infected with 'malware' (malicious software that is harmful to your device). This could mean that the criminal can access your personal details (for example, your passwords and bank account information). This can also lead to identity fraud and loans or other debts being taken out in your name.

TELECOMS SCAM

Criminals will ring you pretending to be your telecoms provider. You may be told that your account is in arrears and you have to make an immediate payment to prevent your phone line from being disconnected. The criminals may even offer to demonstrate that they have the ability to disconnect your phone line using a 'disconnection' scam. This simple trick involves the criminal pressing the mute button. There is no dial tone and you cannot dial out because the phone line is still actually connected, although it appears that the line is dead. The criminal takes the phone off mute, which appears like they have called you back in the hope he has now 'proved' he is a genuine telecoms representative, when of course he is not. The criminal will then ask you to make a payment.

This 'disconnection' telephone scam is used by criminals claiming to represent other organisations (for example, your bank or utility provider) as a way of persuading you to give bank details, pin numbers and sometimes getting you to move money into a criminal's account or physically hand over cash and payment cards. To check whether or not the call is genuine, ring your bank, telecoms or utilities provider using the contact number shown on a statement of account or official document they have previously sent you. It is always wise to use a different phone to the one that you received the call on in case a disconnection scam is in operation.

IMPERSONATION SCAMS

The criminal will ring you and pretend to be from your bank or a law enforcement agency. They will tell you that your account has been compromised and you need to move your money to a different account. The criminal will give you the account details. You may think you are transferring your money to a safe account but you are really only transferring it to the criminals.

If you get a call from your bank or a law enforcement agency, always hang up and call your bank or the law enforcement agency on a number you find for them, not the one they give you. Your bank will also never ask you to transfer money into an unknown account.

GREEN ENERGY OR WHITE GOODS PROTECTION SCAMS

The criminal will ring you and try to sell you green energy products or white goods protection for your fridge / freezer or washing machine. These products usually don't exist but the criminal will get you to sign up to a monthly direct debit for products that are not suitable for you or don't exist. If you are looking for a green energy product or a white goods protection plan, contact a legitimate company of your choosing. Do not respond to calls out of the blue offering you things you may not need without carrying out further research.

LOAN SCAM

The criminal will ring you and invite you to apply for a 'guaranteed' loan with no credit history checks. You will be asked to provide your personal details, including your bank details and then asked to pay an upfront fee so that the application can be processed. However, the promised loan does not materialise (the criminal had no intention of providing it) and the fee you have paid may be lost.

The Financial Conduct Authority's website has information on protecting yourself from scams.

NUMBER SPOOFING SCAM

A common trick used by fraudsters to con victims is to imitate genuine organisations' phone numbers. This is known as 'spoofing'. A call to a mobile or landline phone where the number is disguised as coming from a legitimate business, is more likely to be answered and the caller 'trusted'.

Even if the number looks right, always be suspicious of anyone who asks for your personal or financial details or tells you your money is at risk.

COUNCIL TAX SCAM

You receive an unexpected phone call claiming that you can benefit from thousands of pounds in council tax refunds. You will be asked to provide personal information, including your bank or credit / debit card details. The scam uses the lure of a promised refund to catch you off-guard and obtain your personal information with a view to stealing your identity and your money.

PENSION SCAM

A criminal will ring you and ask you if you are paying into a pension. They will say that if you are, you may be able to release a lump sum payment from your pension before you are 55, transfer your pension to an overseas scheme to avoid UK tax or transfer your pension to another organisation, which will invest the money for you tax free. They will dupe you into paying a large set-up fee and/or transferring your pension. However, you may never hear from them again or worse still, you could put your entire pension in jeopardy as well as incurring substantial tax charges and penalties.

It is illegal to make cold calls in relation to pensions in most circumstances. The exceptions are when:

the caller is a trustee or manager of a pension scheme or a firm authorised by the Financial Conduct Authority
you have consented to receiving the calls from the organisation making the call
you are an existing customer of the organisation making the call, you expect to receive pensions cold calls from them and you have been given the chance to withhold your contact details for the purpose of receiving such calls

The Pensions Regulator's website has information on avoiding pension scams.

This sort of fraud is on the rise and more people are being targeted by these criminals.

TEXT MESSAGE SCAM

You may receive a text from a number you don't know that appears to be a friend asking someone with a different name to you to get in touch urgently. You ring them back to explain they've got the wrong number but later find out that you've been charged for the call at a premium rate.

PREMIUM-RATE PHONE SCAM

You may answer your telephone to discover that the caller is a recorded voice informing you that you are a 'winner'. You will be asked to ring a premium-rate number to claim your prize. The prize, however, does not exist or is of little or no value. The criminals make their money from the costly premium-rate call you have made, which can often last several minutes.

HMRC PHONE SCAM

Criminals pretending to be Her Majesty's Revenue and Customs (HMRC) may ring or leave a voicemail message for you. Part of the fraud can involve 'spoofing' HMRC phone numbers to con people into believing the call is genuine. The fraudsters may claim that you owe a tax payment and that you will be prosecuted if you don't pay it immediately. If you receive a call of this type, hang up. If you receive a voicemail, do not respond.

HOW TO AVOID BECOMING A VICTIM OF A PHONE SCAM

stop, think and be sceptical. Did the communication (the call, letter or email) come out of the blue?
do not give personal or financial information or pin numbers to anyone, however genuine they might sound. This applies even if they claim to represent a business or organisation you have heard of or where an approach is personalised
genuine businesses or organisations will never telephone you and ask you for personal or financial information
think about how much money you could lose responding to a potential scam; it's a risk not worth taking
if you receive a call that you suspect is bogus, speak to family or friends or seek advice from the Citizens Advice consumer service. To report a fraud, call Action Fraud
ask your telecoms provider to set up call screening on your phone so that you know who is calling your number before you decide to answer it. If the number is withheld it will be displayed as 'number withheld'
check if your telecoms provider has free call-filtering and anonymous call rejection services to help protect against nuisance calls. Alternatively, you can buy a call blocker, which is a device that is installed between your phone and your phone socket designed to block scams and nuisance calls
register with the Telephone Preference Service. This is a free service where you can register your preference not to receive unsolicited sales and marketing calls, although it may not stop overseas calls. You can register on 0345 070 0707 or online
be cautious and if in doubt, hang up

I GAVE OUT MY CREDIT / DEBIT CARD DETAILS: CAN I GET MY MONEY BACK?

If you gave your bank, building society, credit card or debit card details or your pin number to a criminal, contact your bank, building society or finance provider immediately and seek their advice. If you have been the victim of a fraud they may be able to help.

If you paid for what turned out to be bogus goods or services by credit card and if the cost was more than £100 and less than £30,000, you are protected by the Consumer Credit Act 1974. Section 75 of the Act makes the card provider as responsible as the trader for a breach of contract or a misrepresentation. You are entitled to take action against the trader, the card provider or both. This does not apply to charge cards or debit cards. In the case of fraud, you may have great difficulty recovering your money from the criminals but you may be able to recover it from the finance provider. If you are dissatisfied with the credit card provider's response, then complain to the Financial Ombudsman Service.

If you used a debit card to buy what turned out to be bogus goods or services or if you used a credit card and the price of the goods or services was less than £100 (your rights under the Consumer Credit Act 1974 would not apply), you may be able to take advantage of the chargeback scheme. Chargeback is the term used by card providers for reclaiming a card payment from the trader's bank. If you can provide evidence of a breach of contract (goods are not delivered or the service was not carried out, for example) you can ask your card provider to attempt to recover the payment. Check with your card provider as to how the scheme rules apply to your card, whether internet transactions are covered and what the time limit is for making a claim.

If you use a debit card or a credit card to service an online payment system to buy goods or services, it is unlikely that you will be able to use either the Consumer Credit Act 1974 or the chargeback scheme to claim from your card provider in the event of a dispute. However, the online payment system may have its own dispute resolution process, which may assist you in getting your problem resolved.

If you have been tricked into agreeing to a continuous payment authority (where regular payments are taken from your credit or debit card) you have rights under the Payment Services Regulations 2017. Even if you have not asked the criminals for the payment to be cancelled, they refuse to do so or you cannot contact them, your bank or card provider must cancel the payment authority. If your bank or card provider does not act on your instruction to cancel, you are entitled to have any subsequent payments reimbursed, but you must report it as soon as possible or, in any event, within 13 months of the date the unauthorised payment was made.

I'VE BEEN THE VICTIM OF FRAUD: WHAT CAN I DO?

If you receive a scam telephone call, you can report it to Action Fraud. You can also report it to the Citizens Advice consumer service for advice and a referral to Trading Standards.

If you are conned into phoning a premium-rate number, you can report it to the Phone-paid Services Authority (PSA), which regulates premium-rate services in the UK.

If you enter a contract because a trader misled you or because a trader used an aggressive commercial practice, the Consumer Protection from Unfair Trading Regulations 2008 give you rights to redress: the right to unwind the contract, the right to a discount and the right to damages. The 'Misleading and aggressive practices: rights to redress' guide gives more information. You can report complaints about unfair trading practices to the Citizens Advice consumer service for referral to Trading Standards. However, it may be difficult to take legal action against a criminal.

If you think your details have been shared unlawfully, you should report it to the Information Commissioner's Office for further investigation.

If you have been the victim of a fraud you can report it to the police via Action Fraud.

If you think your identity has been stolen, please follow the guidance on identity fraud given on the Action Fraud website.

In Scotland, if you think you have been a victim or potential victim of a scam, then report it to Consumer Advice Scotland on 0808 164 6000 or visit consumeradvice.scot. If you think you have been the victim of a fraud then please contact Police Scotland by calling 101.

HOW DO I PREVENT SOMEONE I KNOW FROM BEING SCAMMED?

There are signs that will alert you to the possibility that the person may be a victim of a scam:

do they receive unexplained and frequent telephone calls?
are they secretive about the nature of the telephone calls or any paperwork they have?
do they sometimes refer to these callers as their friends?

Often people refuse to accept that they are the victims of a scam. Try to reassure the person that criminals are clever and scams are commonplace but that there are simple steps they can take to protect themselves. Share with them and discuss the advice in the'How to avoid becoming a victim of a telephone scam' section above.

If you are having difficulty getting the person to understand and accept that they are the victim of a scam, seek help from the organisations listed in the 'I've been the victim of fraud: what can I do?' section above.

You may also want to consider doing the online training on the Friend Against Scams website. This will give you more information on how to help someone you know who is, or could be, being scammed.

OTHER TYPES OF SCAM

See the guides 'Conned by dating, health, psychic or work scams?' and 'Conned by competitions?' for further information.

IN THIS UPDATE

No major changes.

Last reviewed / updated: June 2023

Key legislation

Please note

This information is intended for guidance; only the courts can give an authoritative interpretation of the law.

The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to legislation can be found on each link's 'More Resources' tab.

For further information in England and Wales contact the Citizens Advice consumer service on 0808 2231133. In Scotland contact Advice Direct Scotland on 0808 164 6000. Both provide free, confidential and impartial advice on consumer issues.

Trading standards

Trade Advice Document