A guide to scams during the festive season
As the festive season approaches, the air is filled with joy, celebration, and unfortunately, an uptick in scam activities. This is because the hustle and bustle of holiday preparations can sometimes overshadow our usual cautiousness, making it an opportune time for scammers to strike.
But vigilance isn’t just for Christmas! It’s always good to be informed about the latest developments and techniques being used because they’re evolving so rapidly.
So let’s explore the importance of staying vigilant and how to safeguard against scams using real-life examples as a guide.
Deepfake technology scams
Recent incidents, such as the deepfake scam involving financial broadcaster Martin Lewis, highlight the evolving nature of scams.
Deepfake technology scams involve the use of artificial intelligence (AI) to create highly convincing fake content, typically in the form of videos or audio recordings.
In this case, a fabricated video used AI to mimic Lewis endorsing a bogus investment scheme. The deepfake was so sophisticated that it mimicked not just Lewis's face and voice, but also the captions used on the daytime TV programme he often appears in.
This serves as a valuable lesson for us all: please be cautious of unsolicited messages or advertisements, especially those promising lucrative investments endorsed by well-known figures.
Here’s what to look out for:
Inconsistencies between the message sent and the individual’s facial expression, or lack of emotion.
Fast or slow blinking, or unnatural eye movement
Anything unnatural looking such as artificial lighting, blurring or a lack of shadows
Inconsistencies between the voice and the mouth movement
Strange or unnatural pauses
You can report posts like this on Facebook, Instagram and Twitter (now called X) by:
Clicking the three dot menu (…) next to the ad you want to report.
Click 'Report ad' and then follow the on-screen instructions.
Authorised Push Payment (APP) scams
APP scams are a type of financial fraud where people are tricked into transferring money from their account to an account controlled by a scammer. Unlike unauthorised transactions, which involve a breach of security without the account holder's knowledge, APP scams rely on the victim's consent, making them particularly challenging to detect and prevent.
Scammers often employ sophisticated tactics, including phone calls, emails, or text messages. They may pose as someone trustworthy, such as a bank, a government official, or a service provider.
They may create a sense of urgency or fear, claiming there's a security issue with the victim's account or that they need to move money to a ‘safe’ account. They may even tell you you’ve been subject to fraud.
Once the scammer has obtained authorisation, they quickly move the funds to another account, often making it difficult to trace or recover the money.
There are many ways to protect yourself against APP scams:
Be cautious about unsolicited communications, especially those urging quick decisions or providing alarming information. A genuine company would never have an issue with you taking your time.
Verify the identity of the person or organisation contacting them. If you’re not sure who you’re really speaking to, put down the phone and phone the organisation directly, using the contact number on their website. If it’s from your bank, phone 159 to verify the call is genuine.
Don’t click on any attachments or links that you can’t verify – especially if you haven’t been able to confirm the sender’s identity.
Don’t give out personal or financial information, such as confirming a previous transaction.
If an opportunity seems too good to be true, it probably is. Scammers often entice victims with promises of extraordinary returns on investments. Please report anything like this to us, or to the Financial Conduct Authority.
There are also more general tactics you can employ so that you’re fully protected such as staying informed and regularly educating yourself about common scams and emerging threats. Awareness is a powerful defense against fraudulent activities.
One final tip is to always use secure communication channels when discussing financial matters. Avoid sharing sensitive information through unsecured emails or messages.
Remember, scams are elaborate schemes designed to exploit trust and deceive people, making them a threat that can befall anyone, regardless of age, background, or level of financial sophistication. Falling victim to one is not a reflection of intelligence or awareness; rather, it underscores the increasingly sophisticated tactics employed by fraudsters.
By staying informed, questioning the legitimacy of investment opportunities, and reporting suspicious activities, you contribute to a safer financial environment for everyone.
So please stay vigilant, stay safe, and enjoy the holidays.
Merry Christmas!