Spotting money scams

Resources · Life and money · 5 min read Starting out

Key points

• Most scams run on pressure, secrecy and a story that feels urgent.
• Real organisations don’t ask you to move money to keep it safe.
• Stop, hang up and check using contact details you find yourself.
• If you’ve lost money, act fast and report it. It’s not your fault.

How money scams work

Money scams come in all shapes, but most follow the same pattern. Someone grabs your attention. They build trust, or fear. Then they push you to act before you’ve had a chance to think.

And they work on smart, careful people every single day. Scammers are good at this. They often use real names, real logos and your own personal details to seem believable. Getting caught by one says nothing about how intelligent you are.

Common types

Impersonation scams

Someone claims to be from your bank, a government agency, the police, a delivery company or a well-known business. Your account’s been hacked, they say. Or you owe tax. Or a parcel is waiting. Whatever the story, the goal is to get your details or get you to move money.

Investment scams

High returns with little or no risk. That’s the pitch. These often involve cryptocurrency, foreign exchange trading or some “exclusive” opportunity. Some use fake celebrity endorsements, and some show you fake profits so you’ll put more in.

Romance scams

Someone builds a relationship with you online over weeks or months. Then comes the request for money, for an emergency, a visa, a ticket or an investment. Somehow there’s always a reason they can’t meet in person or jump on a video call.

Job and income scams

Easy work from home, but first you pay upfront for training or equipment. Some of these ask you to receive money and send it on, which can drag you into a crime without you realising.

Debt help scams

Someone offers to make your debts disappear for an upfront fee, or promises something that sounds far too easy. Real free help does exist. You’ll find it through our free debt help page.

Fake invoices and payment redirection

An email arrives that looks like it’s from a supplier, a tradesperson or your landlord. Their bank details have changed, it says. You pay the new account, and the money goes straight to the scammer.

The warning signs of money scams

The stories change. The red flags don’t.

• Urgency. “Act now or your account will be closed.” Pressure stops you thinking clearly, which is the point.
• Secrecy. “Don’t tell anyone, not even your bank.” They want you away from anyone who might spot the problem.
• Odd ways to pay. Gift cards, cryptocurrency, wire transfers or moving money to a “safe account”. All hard to trace or reverse.
• Too good to be true. High returns, no risk, can’t lose. Real investments carry risk.
• Contact out of nowhere. A call, text or email you weren’t expecting, especially with a link.
• Asking for codes or passwords. One-time codes are for you alone. Real organisations won’t ask for them.
• Changed payment details. Any message saying bank details have changed deserves a check.

Habits that protect you

If something feels off, stop. End the call. Close the message. A real organisation will still be there tomorrow, and nothing legitimate falls apart because you took ten minutes to check.

Then check properly. Find the phone number or website yourself, from an official source, and never use the one in the message. Same with links in messages you weren’t expecting. Don’t click them. Type the address in yourself.

Never share one-time codes or passwords. Not with anyone, for any reason. No exceptions.

Talk it over with someone you trust. A friend or family member who isn’t under pressure can often see straight through what the pressure is hiding from you.

Use strong, different passwords and two-step sign-in where you can. And check your statements regularly. When you know your usual spending, an odd payment jumps out.

If you think you’ve been scammed

Move quickly. It can make a difference.

1. Stop all contact with the scammer. Don’t send another cent, even if they promise to return what you’ve lost.
2. Tell the bank or payment service the money left from, using the number on their official website or the back of your card. They may be able to stop or recover the payment.
3. Change your passwords if you’ve shared any, starting with your email and money accounts.
4. Report it. Many countries have a national body for reporting scams and fraud, and often the police take reports too. Every report helps warn someone else.
5. Watch your credit report. If you’ve handed over personal details, someone could try to borrow in your name. Credit report agencies such as Equifax, Experian and TransUnion operate in several countries.
6. Watch out for recovery scams. People who’ve been scammed often get contacted by someone offering to get the money back, for a fee. That’s usually another scam.

Look after yourself

Being scammed can feel humiliating. Lots of people never tell a soul. But that shame is exactly what scammers count on to stay hidden. Talking about it, reporting it and getting support take real courage, and they make it harder for the same people to do it again.

If a scam has left you with debts you can’t manage, free debt help is confidential and costs nothing.

Common questions

What are the warning signs of a scam?

Watch for urgency, secrecy, odd ways to pay, promises that sound too good to be true, contact you weren’t expecting and requests for codes or passwords.

What should I do if I’ve been scammed?

Stop all contact. Tell the bank or payment service the money left from, using official contact details. Change any passwords you shared, and report it. The faster you act, the better.

Will a real bank ask me to move money to a safe account?

No. Real organisations don’t ask you to move money to keep it safe, and they won’t ask for one-time codes either.

Try it

When you know your normal spending, unusual payments are easier to spot. The budget calculator helps you map it out.

General information only, not financial advice. Your situation is your own.