Five frauds to watch out for in 2023, here’s what you need to know

People in the UK have received further warnings from experts to be wary of scammers as the cost of living crisis continues to create opportunities for criminals. During this difficult period, people are more likely to gamble on 'get rich quick' schemes or risky investments and so are more likely to become victims of fraud.

Consumer watchdog Which? has listed the five main ways people are being defrauded and the best ways to avoid becoming a victim in 2023.

Evolving tactics

The Money editor at Which?, Jenny Ross, commented that the methods employed are constantly evolving, as per The Sun:

Scammers are relentless when it comes to wanting our personal information and ultimately our money. And while their tactics will no doubt continue to evolve, we think these scams are the main ones to watch out for.

Banks will never ask you for personal information, nor will they try to hurry you into making a decision.

If this happens to you - whether by text, email or over the phone, step back and think about what they're asking. If it looks too good to be true, it usually is.

Fraud is currently the most common crime in England and Wales accounting for 41 per cent of all crimes against individuals. Its losses total over £4 billion over the past year according to the Lords Fraud Act 2006 and digital fraud committee, as per The Times.

Top 5 Scams

These are the top 5 scams to look out for and how to combat them, as per Which?:

1. Money mule requests

These requests happen when you unwittingly allow a criminal to use your bank account to move stolen money. Tactics include saying they have sent funds ‘in error’. Beware of any suspicious-sounding requests like this or where they offer you a percentage of a transfer.

2. Card theft

Which? recommends keeping a close eye on balances and payments with text or email alerts, and using ATMs inside bank branches when possible.

3. Fake apps

Read reviews of apps and developers before downloading, to help gauge their legitimacy.

4. Spoof calls or texts

This is a common technique to imitate legitimate companies, normally banks, to gain your personal information. Which? advises being suspicious when asked to press numbers on a phone keypad or follow a link in a text message. Also do not trust caller ID and banks will never ask for personal information.

5. Online purchase scams

Criminals pay for fake adverts online and offer high-value goods for cheap prices. Warning signs include spelling errors and a lack of contact details. Which? recommends users stick to trusted retailers and be wary of paying by bank transfer.

Sources used:

- The Sun 'Five frauds to look out for from ‘relentless’ scammers next year – don’t get caught out'

- The Times'Five frauds to watch out for next year'

- Which? 'Five banking scams to watch out for in 2023