Website of the UK government

What are scams?

Scams are schemes that try to trick you out of your money. Common scams include:

• foreign lottery wins – these ask you to pay a fee to claim your ‘prize’ when you haven’t really won anything
• get-rich-quick investments – invite you to invest money for a ‘guaranteed’ profit, when there is no investment so you lose your money
• miracle health cures – invite you to buy a health product like arthritis cream from a website that has not been tested and is unproven

You can find out more about different types of scams by following the links below.

• Types of scams

• Avoid illegal trading schemes

• Financial scams - how to protect yourself (money, tax and benefits section)

How to recognise a scam

A scam is usually uninvited (unsolicited). This means it will come from a company or person you’ve never heard of by:

• post – through a letter or promotional leaflet
• email – through a personal or promotional message ('spam emails')
• phone ('cold calling')
• text message

A scam will:

• give extravagant promises – if it sounds too good to be true, it probably is
• ask you to pay for something upfront, eg you have to pay a fee to claim a prize
• put pressure on you to make a quick decision, eg an investment opportunity will end unless you pay straight away
• ask for bank account details so they can steal your money

Never give out bank details to people you don't know or people you meet online.

Other signs of a scam are the person or company only:

• gives a mobile phone number as a contact
• uses a PO box number or mail box as an address – mail boxes look like a real address but the business isn't based there

PO boxes and mobile numbers are easy to turn off and hard to trace.

Use an online search engine to check a business's address – a mail box will have many companies based at the same address.

How to deal with scams

If you receive emails or letters about a scam, don't reply – even to say no. Once scammers get a reply, they will send more unwanted messages.

If you are cold-called by a scammer, hang up. Don't give out any personal details like your address or 'confirm' details like your bank account number.

If you answer the door to a salesperson, ask to see their ID. Check the company name, eg online, and then call the company to check the person works there.

If you have lost money to a scam, report it to the police and Action Fraud, the national fraud reporting centre. You should also take steps to reduce your risk of being contacted with more scam offers (see section below 'Reduce your risk of being scammed').

If you think you’ve been tricked into calling a premium-rate number, complain to PhonepayPlus. It has the power to fine companies and stop them offering premium-rate numbers.

• Report a scam to Action Fraud Opens new window

• Complain to PhonepayPlus Opens new window

How to check a company or offer is genuine

Before you give your bank details or agree to invest any money:

• take the paperwork away to read – never sign up to anything immediately
• read the small print of the contract and make sure you understand all the terms and conditions of the offer
• check the credentials of a company or individual – use an online search engine to see if there is any feedback
• get advice from an expert in law or money, eg an independent financial adviser or solicitor
• use a credit card to protect your payment if you are being asked to pay between £100 and £30,000

If the company claims they are a limited company, they should be registered with Companies House, the official government register of companies.

If the offer is to buy or sell shares, only deal with a company that is on the Financial Services Authority (FSA) register of authorised firms.

• Search for registered companies Opens new window

• Check if a shares trader is on the FSA register Opens new window

Reduce your risk of being scammed

There are things you can do to reduce the number of unwanted offers you receive.

Step one: register your phone number and address with the mail and phone preference services (see links below). This means genuine companies will not contact you by mail or phone unless you have dealt with them before, eg because you bought something from them.

Step two: ask organisations you’ve dealt with before to remove your address or phone number from their databases.

Step three: reply to unwanted text messages with the word ‘stop’. If this doesn't stop the messages, speak to your mobile network provider about blocking the number from contacting your phone.

Step four: install anti-spam software on your computer and a firewall to stop spam messages.

• Stop unwanted post by registering with the Mailing Preference Service (MPS) Opens new window

• Stop unwanted telephone calls by contacting the Telephone Preference Service Opens new window

• Get advice on how to protect yourself online (home and community section)

More useful links

• How to find a reliable business

• Consumer rights - an introduction

• Buying a service - your consumer rights