Beware of cost of living scams in the UK: protecting yourself from fraudulent schemes

The cost of housing, food, and transportation are three major factors that influence how expensive it can be to live in the UK. Regrettably, some people use this circumstance and engage in dishonest behaviors known as cost of living scams. With the promise of reducing their living expenses, these frauds prey on people who are considering moving to the UK or those who are currently residing here.

In this post, we'll look at several typical UK cost of living scams and offer advice on how to avoid falling prey to one.

Rebates for energy bills

The energy bill rebate scam, in which con artists assert to offer rebates on energy bills, is one typical cost of living scam.

Action Fraud has received over 350 reports of fraudulent text messages and emails between September 1, 2022 and November 13, 2022. The messages claim the recipient is “owed” or “eligible” for an energy bill discount as part of the Energy Bill Support Scheme. The emails feature a header stating “E.ON: Gas and electricity supplier” and may contain the Ofgem logo. Remember, that in UK there is no application necessary for the Energy Bill Support Scheme, and no banking information needs to be provided.

In order to execute the reimbursement, the con artist would frequently demand personal and financial information from the victim, such as bank account information. But, once the con artist obtains this information, they can use it to carry out fraudulent transactions or perpetrate identity theft. Read more here.

Bill payments, fuel vouchers, phone bill discounts, and market offers

Scammers who provide services like cost of living payments, fuel vouchers, phone bill savings, and grocery bargains are another popular cost of living hoax. To access these services, the con artist will frequently demand a deposit or personal information; however, as soon as the money is transferred, they vanish. The majority of the time, these services are fraudulent, and clients lose their money or become victims of identity theft.

The Department for Work and Pensions has issued a statement cautioning citizens about potential scams in relation to cost of living assistance. There have been numerous complaints regarding incoming scam phone calls, emails, and text messages. One instance involves recipients being asked to apply or claim the payment by clicking on a link provided. To remain safe from these fraudulent attempts, it is imperative that you do not click on any links sent to you via suspicious sources.

It's important to be aware of scam government energy rebates, where fraudsters use the guise of a legitimate scheme to trick people into sharing personal information or making payments to them.

Fake investment opportunities

Some cost of living scams involve fake investment opportunities. Scammers will often promise high returns on investments, but once the victim invests their money, they never receive the promised returns. These scams can be very convincing, with scammers using complex financial jargon and fake testimonials to convince victims to invest. Read more here.

Council Tax

One common scam involves fraudsters contacting victims and claiming to be from the local council. The scammer will then inform the victim that they are eligible for a council tax refund and ask for their personal and financial information in order to process the refund. Once the scammer has this information, they can use it to commit identity theft or make fraudulent transactions. Read more here.

Scammers often use fake text messages to trick people into transferring money to their accounts by requesting banking details and creating a sense of urgency.

Universal Credit

Universal Credit is a benefit that provides financial assistance to individuals and families on low incomes or who are unemployed. Unfortunately, scammers have found a way to exploit this system and prey on vulnerable individuals who are in need of financial assistance. One common scam involves fraudsters contacting victims and claiming to be from the Department for Work and Pensions (DWP) or the Universal Credit team. The scammer will then ask for the victim's personal and financial information, such as their National Insurance number or bank account details, in order to process their claim. Once the scammer has this information, they can use it to commit identity theft or make fraudulent transactions. Read more here.

Tips to protect against cost-of-living fraud

The UK government energy rebate scheme is designed to provide financial support to eligible households to help them reduce their energy bills and make their homes more energy-efficient.

Use secure payment methods such as credit cards or PayPal.
Avoid deals or offers that are not transparent or do not have clear terms and conditions.
Use reputable service providers and avoiding deals that seem too good to be true.
Avoid unsolicited investment offers and use reputable investment providers. Check the credentials of the person or company offering the investment opportunity and seek professional advice before making any investments.
Don't transfer money if you are not absolutely sure you are going to wash the company.
Do your research and verify the legitimacy of the service before making any payments or sharing personal details. Use reputable service providers and avoid deals or offers that are not transparent or do not have clear terms and conditions.
Before making a purchase from an unfamiliar website, be sure to take some time and research it thoroughly. A great place to begin is by reading the terms & conditions; if there's any doubt about the legitimacy of a company, look for its address—it should contain at least one street name rather than just including a P.O box as these can often be used by disreputable organizations.
Don't transfer money if you are not absolutely sure you are going to wash the company.
Avoid sharing your personal or financial information with anyone you don't trust. If you receive an offer for an energy bill rebate, do your research and verify the legitimacy of the offer before providing any information.
Use official contact details provided on the council's website to verify the authenticity of the call or email. Remember, the council will never ask for your bank account details over the phone or via email.

Conclusion

If you are considering making any significant financial investments, it is always advisable to seek professional independent advice before making any decisions.

Cost of living scams in the UK can be very convincing, and scammers use sophisticated techniques to make their schemes appear legitimate. However, by being aware of the signs of a potential scam and taking necessary precautions, you can protect yourself from becoming a victim. Remember to always use reputable service providers, avoid deals or offers that are not transparent or do not have clear terms and conditions, and only make payments using secure payment methods. If you do fall victim to a cost of living scam, it's important to report it to the relevant authorities as soon as possible.

By being vigilant and taking the necessary precautions, you can protect yourself from cost of living scams in the UK. Remember, if something seems too good to be true, it probably is. Always do your research and verify the legitimacy of any offer before making a payment or sharing personal information or bank details.

If you think you could have been scammed contact your bank immediately and report it to Action Fraud.

Stay safe and protect yourself from fraudulent schemes.