Scams on the rise amid cost-of-living crisis: Here’s what to look out for

The cost-of-living crisis has made a lot of people more vulnerable. And where there’s vulnerability, there will always be scammerslooking to take advantage.

Scams on the rise

Indeed, The Independentcited a recent report by The Financial Times that £1.3bn was stolen from British consumers in 2021, up from £1.2bn the previous year, according to UK Finance. In addition, 140,000 calls have been made to Stop Scams UK’s dedicated helpline since it was launched last September.

Meanwhile, Citizens Advice reported that 40 million Britons, over 75% of the population, had been targeted by a scam so far this year, a 14% rise year-over-year. Dame Claire Moriaty, CEO of Citizens Advice, said:

We know scammers prey on our worries and fears and the cost of living crisis is no exception.

What to look out for

The Department for Work and Pensions (DWP) has warned about scammers targeting cost-of-living relief payments. Here’s what to look out for, according to Martin Lewis’s MoneySavingExpert site:

• Texts purporting to be from 'Gov.org' or the DWP itself asking you to claim or apply for cost-of-living payments - this is not necessary because they are made automatically.
• Calls purporting to be from your local council asking for bank or card details so that you can receive your £150 council tax rebate (again, you do not need to do this);
• Messages claiming to be from Ofgem offering energy bill rebates (the payments are being managed by the Treasury, not the energy regulator).

Other scams to look out for include, as reported by Express:

• Being offered a 'special rate' on your energy bills that requires upfront payment.
• Calls purporting to be from your local council claiming you have overpaid your council tax. They will then offer you a refund and request your bank or card details.

Read more:

⋙ British Airways passengers being scammed out of £150 on Twitter

⋙ Scam warning: WhatsApp scam alert could cost you £1000

⋙ Gmail, Outlook and Hotmail users warned about new inbox scam