Metro Bank is warning consumers about the sharp rise in HM Revenue and Customs (HMRC) hoaxes and investment scams ahead of the current tax year ending on April 5.
Impersonation scams are one of the biggest and most successful types of fraud, with £90.5 million lost in Britain in the first six months of 2022, according to UK Finance.
HMRC is often impersonated by fraudsters pressuring people to send money to pay an outstanding tax debt.
Metro Bank said consumers also need to be aware that telephone numbers can be spoofed and that HMRC will never pressure anyone to make immediate payments.
A good rule of thumb is if it sounds too good to be true, it probably is.”
Baz Thompson, head of fraud and investigations, Metro Bank
These frauds are so common the UK Government has its own web page advising on how to identify tax scam calls, emails and texts, along with a list of genuine HMRC contacts.
UK Finance’s figures show a 95% increase in investment scams losses last year, to £107.7m.
According to Metro Bank, the most common investment scams are impersonation of genuine companies using celebrities, cryptocurrencies, and precious gems or metals.
If in doubt, consumers can check the validity of investment or pension opportunities on the Financial Conduct Authority’s warning list.
‘Never be pressured to act quickly’
Baz Thompson, head of fraud and investigations, Metro Bank, said: “The key to preventing both these types of scams is to take a few minutes to check you are dealing with a legitimate source and never be pressured to act quickly.
“Avoid clicking on any advert you see on social media and be aware that most fraudsters want to make the offer seem appealing by offering great returns on your money quickly.
“Consumers should also be aware that scammers can compromise the social media accounts of friends and then make contact as if it was their friend making a recommendation. A good rule of thumb is if it sounds too good to be true, it probably is.”
Describing a classic investment scam, Metro Bank said: “Emma wanted to invest her long term savings into an Isa (individual savings account) for the new tax year. She wanted to find the best rate available and searched online for high-return Isa accounts.
“After just a few clicks, she recognised the company at the top of the results and followed the link – it offered accounts with great but seemingly realistic interest rates.
Everything seemed fine
“Emma went ahead and signed up to inquire. That afternoon Emma received a call from a savings manager at the company who understood her needs and helped her to open a one year, fixed-term Isa. She was sent confirmation details and given access to her account the same day.
“Once it was time for the Isa to mature, Emma started looking at her options.
“She tried contacting the company to collect her funds, only to find they had no accounts relating to her and she had no investments with them.”
So what happened?
Scammers create fake websites and documents to lure you in.
Metro Bank said: “Emma hadn’t visited the genuine website or spoken to a genuine savings manager – it was a facade created by scammers to steal her money.”
Mr Thompson added: “Fraud is the most common crime in the UK and there are simply not enough resources to fight it.
“Consumers need to do more to protect themselves.
“If you are being pressured to act quickly, or give money, please be aware that this is likely to be a scam. Stop, challenge and protect yourself from becoming a scam victim.”
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