Scammers are good at sounding official. They use real company names, convincing websites and a sense of urgency to rush you into handing over money or personal details. Anyone can be caught out, especially when money is tight and an offer of quick help looks like a lifeline.
Here are five scams we want every customer to know about, how each one tends to work, and what you can do to protect yourself.
1. Loan fee fraud: asked to pay before you get the money
You apply for a loan, or someone contacts you out of the blue, and you are told you have been approved. There is just one catch: you need to pay an "admin fee", "insurance" or "security deposit" first. Once you pay, the loan never arrives and the contact disappears.
Be very wary of any request to pay money up front to release a loan, particularly by bank transfer, gift cards or vouchers. These scams often target people with poor credit, because they know a guaranteed approval sounds tempting. A responsible lender will always check affordability and will never guarantee you a loan before it has looked at your circumstances.
2. Clone firms pretending to be real companies
A clone firm copies the name, address and even the FCA reference number of a genuine authorised business. The only difference is the phone number, email address or website, which lead to the fraudsters.
To protect yourself, always look the firm up on the FCA Register and contact it using the details shown there, not the ones in the message you received. The FCA also keeps a warning list of firms to avoid on its ScamSmart pages.
Logbook Money is authorised and regulated by the FCA. If anyone contacts you claiming to be from us and something feels off, hang up and get in touch using the details on our contact page. You can read more about who we are on our about us page.
3. Phishing texts, emails and calls
Phishing messages pretend to come from your bank, a delivery company, HMRC or a lender. They usually include a link to a fake website that asks for your card details, passwords or one-time passcodes. Some claim your account has been compromised and ask you to move money to a "safe account".
A few rules that keep you safe:
- Never share a one-time passcode with anyone, even if they say they are from your bank.
- Do not click links in unexpected messages. Go to the company's website or app directly instead.
- Your bank will never ask you to move money to another account to keep it safe.
- Forward scam texts to 7726, a free service run by mobile networks, and suspicious emails to report@phishing.gov.uk.
4. Car sale scams, whether you are buying or selling
Buying or selling a vehicle privately attracts fraudsters too. As a buyer, watch out for cars priced well below their value, sellers who cannot meet at the address on the V5C, and anyone asking for a deposit before you have seen the car. A vehicle history check can show whether a car is recorded as stolen, written off or still has finance on it.
As a seller, be wary of buyers who send a screenshot as proof of payment, overpay and ask for a refund of the difference, or want to collect the car before the money has cleared in your account. Do not hand over the keys or the V5C until you have checked the funds are actually there.
5. Debt help that costs you more
Some firms advertise debt solutions that sound too good to be true, then charge large fees for advice you could get for free. Free, impartial debt help is available from StepChange, National Debtline and Citizens Advice.
What to do if you think you have been scammed
Act quickly. Call your bank straight away using the number on the back of your card, as it may be able to stop a payment. Then report the scam to Report Fraud if you are in England, Wales or Northern Ireland, or to Police Scotland on 101 if you live in Scotland. Do not feel embarrassed. Scammers are professionals, and reporting helps stop them targeting others.
When you borrow from a genuine lender, the risks are different but still real. A logbook loan is secured on your vehicle and is a costly way to borrow, so make sure the repayments are affordable before you sign.
Your car may be repossessed if you do not keep up repayments on a loan secured against it.
