Picture this. An email lands in your inbox - it’s from a prince in a faraway land. A nefarious individual is apparently controlling their estate (worth millions), and all they need is a little help from you to access their account and they’ll reward you with hundreds of thousands, and sometimes millions of pounds….
The so-called “Nigerian Prince Scam” is so well known that it is difficult to fall for, and most of the time, email servers automatically filter it as junk.
However, phone scams are a different story and are regularly used by criminals to trick people out of their money using various and clever tactics. The worst thing is phone scams aren’t as easily recognisable as classic email scams and currently, phone scams account for nearly a third of all fraud.
In this article, we’ll help you to identify phone scams fraud, give you ways to protect yourself and empower you to report the criminals involved.
In this guide we’ll cover:
The different types of phone scam
How you can confidently identify them
The tactics scammers use to gain your confidence
How to stop scammers calling you
Ways to report scammers
What you can do if you’re a victim of a phone scam
What is a phone scam?
Phone scams are a method that fraudsters or criminals use to try and get your personal financial information over the phone. Scammers are sophisticated and relentless, meaning they’ll do whatever it takes to scam you out of your money; some people have lost their life savings in phone scams.
Phone scams are sometimes known as ‘Vishing’ - a combination of ‘voice’ and ‘phishing’. Phishing is the wider name given to scam emails, text and phone calls. Phishing is a play on the word fishing, because scammers use lures to trick people into giving away their personal information.
The issue is more widespread than you might think. In just three months leading up to September 2021, Ofcom research revealed that almost 45 million people were targeted by potential scam texts or phone calls.
Phone scam stats at a glance:
Text scams are the most common form of phone scam
75% of 16-34-year-olds were targeted in the timeframe above
60% over-75s received a suspicious call to their landline
82% of Ofcom’s survey respondents reported a suspicious text, recorded message or phone call
Types of phone scams
The most common phone scams are text messages aimed at younger people. This might be surprising as younger people (16-34 age bracket as Ofcom define) are considered to be digital natives. They should be able to spot an attempted phone scam message a mile off, right?
Well, not necessarily.
The problem is that phone scams can be incredibly hard to spot as scammers use methods and technology designed to quickly win your trust. They may have some of your information from a data breach elsewhere or they might impersonate trusted institutions like the Government or the NHS. On top of this, they can make it look like they’re actually calling from your bank, all of which can make you think a call or text is genuine.
Some of the most common scams to look out for are:
Impersonation scams – in these common scams, someone will call you telling you they’re from your bank’s fraud department. They’ll usually tell you that someone has access to your account and encourage you to move your money to a safe account – that only they have access to. Scammers might also ask for your PIN and for you to give your card to a courier. Your bank would never ask you to do this. If you do, you’ll likely never see your money again. Scammers also impersonate the police, sometimes pretending to be undercover police investigating someone at your bank, Government departments (HRMC) and during COVID especially, the NHS.
Remote access scams – with the intention of gaining access to your bank account, a scammer will say your bank account has been compromised and you need to download software onto your device so they can access your account to protect you. The software will appear genuine, but it can be used to steal your money. If you are ever pressured into downloading software you should hang up, delete anything you have downloaded and disconnect your internet.
Tech support scams – a scammer may call you and say your computer or mobile phone has a virus and they can help you delete it. They may pose as Microsoft for instance, or an anti-virus company like Norton, someone you trust, and tell you your device has malware. They’ll attempt to get you to download malware or give them remote access, which will allow them to remotely access your device and give them sight of all your most private information.
HMRC scams – any time you get one of the HMRC brown envelopes on your doormat there’s a certain flutter of anticipation, usually “Oh no, I haven’t paid enough tax!”. Scammers manipulate your emotions based on this known fear and will tell you you’ve underpaid your tax - they may even threaten you with being taken to court. Often, these messages will be in the form of automated voice messages and you’ll be asked to press a number which will put you through to the scammer. Typically, they will then ask you to reveal your bank details, bear in mind that HMRC would never do this. Other scams include emails and text messages which list a number you can call to secure your account or receive a rebate. You can report scams to HRMC online.
Investment scams and cold calls – when someone calls you out of the blue with an investment opportunity where they promise huge returns, alarm bells should immediately start ringing. The Government banned cold calls about pension investments in 2019 and consulted in August 2023 about whether to extend this to all financial products. We’ll be sure to cover any changes to laws around cold calling as they come to light and we go into further detail about cold calling later.
Lottery or prize draw scams – wow, you’ve won the lottery, but hold on you never entered?! A scammer will try to trick you by calling you up to say you’ve won the lottery or a prize draw. When you tell them you never entered, they’ll be prepared with a story to cover their lie. To receive the non-existent money, they’ll usually ask you for your financial or personal information.
Remember that many of these scams are designed to catch you off guard when you are likely in a rush, so if you ever experience anything like the examples we have given above, hang up straight away, delete anything you've been asked to download and speak to a close relative for support and guidance.
How to protect yourself from scams
There are a variety of techniques you can use if you believe you have received a scam text or phone call:
Take five – hang up a phone call, or stop reading a text and take 5 minutes to think whether it is as it appears
Verify – you can verify a message is legitimate by using a different method of contact than the one given in the communication. For example, your bank card will show a verified phone number to call the bank through. Use this number only.
Never – allow someone to remotely access your computer - legitimate businesses wouldn’t ask you to do this, unless you’re already a customer. And never download software requested by someone. If you have - delete it straight away.
Remember – HMRC will never threaten to arrest you, your bank will never ask you to move or withdraw money, and you should not share your private information with anyone (PIN, national insurance, bank details, date of birth etc)
Call 159 – if you get a call from someone claiming to be from your bank, you can easily verify this. Call 159 and you’ll be put through to your bank’s customer service. The following banks subscribe to 159: Barclays, Bank of Scotland, Co-operative, First Direct, Halifax, HSBC, Lloyds, Metro Bank, Nationwide, NatWest, Royal Bank of Scotland, Santander, Starling Bank, Tide, TSB and Ulster Bank
Wait - scammers can keep your phone line open even after you hang up. So, when you receive a suspicious call, phone the company back on a different number after waiting 10-15 minutes, or use another form of trusted communication
How to recognise a phone scam
Despite how sophisticated phone scammers have become, there are some telltale signs that give them away:
Scammers threaten you with arrest – law enforcement agencies wouldn’t pre-warn you of an investigation into you, or threaten to arrest you. This is simply a tactic to scare you and should send you running a million miles in the other direction!
You’re asked to pay or give away personal information to win a prize – you’ll never have to pay to receive a prize draw you’ve entered, for example the National Lottery. And if you’re asked for personal or bank account details, don’t give them ever
You’re pressured into acting NOW – scammers will be urgent; they’ll rush you and ask you to commit to sharing information or access to your finances immediately. They’ll also have no patience with you asking questions. A legitimate business wouldn’t act like this, they’ll give you the time you need to think a decision over and share information you’ve asked for to make an informed choice
Scammers request you pay a certain way – cryptocurrency (we’ve written about cryptocurrency scams too), bank transfer, gift cards… fraudsters will ask you to pay in several ways all of which are untraceable. If someone demands you pay in only one specific way, chances are they’re a scammer
Government departments won’t call you for personal information – HMRC, for instance, won’t call you out of the blue asking for sensitive personal information such as your national insurance number. If they say they’re from HMRC and ask for this, you’ll know it’s a scam
What is the difference between a phone scam and a cold call?
A cold call is when a company which you have never been a customer of calls you unexpectedly. They’ll try to sell you something, which is irritating, but unfortunately not yet illegal.
In its consultation into banning financial cold calling, the Government wrote:
“Criminals often use telecommunication networks and services to commit fraud, including through cold calling the public. Banning cold calling for financial services and products will help block fraud attempts before they can cause harm. [If the ban happens] The public will know that no legitimate firm would cold call them to market financial services or products, and should feel empowered to terminate and report these calls.”
The Government also said in May 2023 that:
"Sim Farms" which are used to send scam messages in bulk will be banned
The authorities will work with overseas intelligence and police services to close fraudulent call centres
New public service campaigns will be launched to educate people about the risks of phone scams
Phone number spoofing, where scammers use real businesses’ phone numbers will be tackled through new measure
It will allow legitimate and beneficial communications from businesses to continue
We await further information in the coming months about how the Government will tackle phone scams and investment cold calling
Common tactics used by phone scammers
There are a few common tactics used by scammers:
Call you with a seemingly genuine number – and follow up with either a computer or human voice
They will keep your landline open – after calling you by not hanging up and they’ll try to trick you by playing a dialling tone
They’ll will send you text messages – these appear alongside your genuine text messages which can give them a legitimate appearance - the message will ask you to call them or will include a link, or they might ask you to enter a one-time password
They’ll send you website links – to steal your data, the links they send you might look almost identical to common websites you use and trust, including your online banking platform or bank’s app. The purpose of these links is for you to reveal data that scammers can steal and use against you
How to stop calls from scammers
Luckily there are ways you can get your phone number removed from dodgy databases that share your details with scammers, and it’s easy to do.
The Telephone Preference Service (TPS) prevents legitimate companies from cold calling your phone number, so if you get any calls from scammers, you’ll know they’re fake straight away.
You can also use a call blocker to restrict certain calls.
How to report a phone scam
You can report a suspicious call to 7726, a phone number that most mobile phones using UK networks can text.
7726 spells SPAM on an alphanumeric keypad, so if you still use one of those, it’s a handy way of remembering the number.
Ofcom has more information about how to forward suspicious text to 7726 for both Android and iPhones.
What to do if you’re a victim of phone scammers
If you think you have been scammed, you should report it to Action Fraud as soon as possible. You can call 0300 123 2040, or report your case on their website.
Action Fraud applies to England, Wales and Northern Ireland. You can report fraud and other financial crimes in Scotland to Police Scotland via 101.
Fraud and phone scams
For help and advice relating to fraud, including phone and mobile phone scams, speak to our legal assessment team today for a free case assessment and advice.