Financial scams are becoming increasingly sophisticated, making it crucial for everyone to stay informed and vigilant. Falling victim to a scam can be devastating, both financially and emotionally. These fraudsters are experts in deception, and their goal is to exploit trust and vulnerability. To help keep you safe, we’ve outlined three of the most common scams we’re seeing today, along with practical steps you can take to avoid them. We also want to share the measures we take as a firm to protect you.
The 3 Common Financial Scams:
1. Phishing Scams
Phishing scams are one of the most common forms of fraud. Scammers pose as trusted organisations, such as your bank or a utility company, and contact you through emails, text messages, or even phone calls. Their aim is to trick you into sharing personal information like passwords or bank details. They often use urgent language, claiming that there is an issue with your account or a security risk that needs immediate attention.
How to spot it:
- Look out for poor spelling and grammar.
- Be cautious if an email or text message contains a link, especially if it claims to require “immediate action.”
- The message may come from an unusual sender address or number.
What we do: We never ask for sensitive information via email. Where possible, we use our secure client portal, MyOvation. If we need to confirm anything, we will call clients on a known number to verify identity.
What to do: If you receive a suspicious message, do not click any links. Instead, contact the company directly using a verified phone number.
For more advice on spotting phishing scams, visit; https://www.actionfraud.police.uk/a-z-of-fraud/phishing
2. Investment Scams
Investment scams are becoming more common. They often target people looking to boost their returns. Fraudsters may offer “exclusive opportunities” in high-risk markets like cryptocurrency, property, or new ventures – promising guaranteed returns. These schemes can be extremely convincing, sometimes even involving professional-looking websites and fake testimonials.
How to spot it:
- Unsolicited offers to invest in something you’ve never heard of.
- Promises of high or guaranteed returns with little or no risk.
- Pressure to act quickly or miss out on the opportunity.
What we do: We ensure that all investment advice and transactions are conducted transparently and are in line with FCA regulations.
What to do: Always check the legitimacy of an investment and speak to us here at Ovation before making any decisions.
3. Impersonation Scams
In these scams, criminals pose as someone you know and trust—such as your bank, HMRC, or even a family member — to manipulate you into transferring money or sharing personal details. Whilst these scams are starting to use deepfake AI technology, they still utilise the communications we are all used to the most. They may call, email, or text, pretending to need urgent help or warning you that your money is at risk. These scams can also target businesses, where fraudsters impersonate senior executives to authorise fake payments.
How to spot it:
- Unsolicited contact from someone claiming to be from an official organisation or a known contact.
- Requests for sensitive information or urgent money transfers.
- Caller ID spoofing—where the incoming call appears to be from a genuine number.
What we do: For your protection, we never act on withdrawal requests based solely on emails. Instead, we always confirm by calling clients on a trusted number. This extra layer of security ensures that we are speaking to clients directly and not an impersonator.
What to do: If you receive a suspicious call, hang up and call back on a known, trusted number. Report suspicious contacts to https://www.actionfraud.police.uk/ or call them at 0300 123 2040.
What to Do if You Think You’ve Been Scammed?
If you suspect you’ve been targeted or fallen victim to a scam, act quickly.
Contact your bank immediately to freeze your accounts if necessary, and report the incident to https://www.actionfraud.police.uk/ or call them on 0300 123 2040. They can provide further advice and guidance. Additionally, Citizens Advice offers support and can guide you on what to do next. Visit their site https://www.citizensadvice.org.uk/
By staying aware and adopting good security habits, you can help protect yourself from these 3 common scams and more.
Want to explore more financial scams to be aware of? Come and listen to Episode 24 of The Financial Wellbeing Podcast as they discuss financial fraud in more detail.
As always, we are here to help if you have any concerns or need guidance, contact us here for a chat.
