8 money scams and the warning signs we all need to look out for

Some of us (if not all) have fallen victim to a scam at least once in our lives. This may have been through making payments and not receiving goods or giving money to a stranger expecting it to double. We often feel foolish after realizing that we have been duped but here are eight warning signs you need to look out for to avoid such from recurring. 1. Purchase scam The victim pays up-front for goods or services that are never received. These scams often happen online, such as when someone uses an auction website or social media. A warning sign could be if you spot something of high value, such as a car, phone or computer, advertised at a low price. Fake holiday rentals and concert tickets may also be advertised online. Victims may be persuaded by the fraudster to pay for the goods via direct bank transfer, instead of using websites' secure payment options. 2. Advance fee scam With this scam, victims may be tricked into parting with their money as a 'fee' after being promised a larger reward. Criminals may claim they have won an overseas lottery, or that gold or jewellery is being held at customs - and a fee must be paid to release money or goods which don't really exist. 3. Investment scam People are persuaded to move their money into a fictitious fund, or to pay for a fake investment. The criminal usually offers high returns to entice them. These scams include investment in items such as gold, property, carbon credits, land banks and wine. 4. Romance scam The victim is convinced to make a payment to a person they have met, often online through social media or dating websites, and with whom they believe they are in a relationship. The 'relationship' is often developed over a long period and the person is convinced to make multiple, generally smaller, payments to the criminal. 5. Invoice and mandate scam Scammers step into the middle of people's legitimate transactions to swipe money that was intended for someone else. Someone could be paying a solicitor or a builder, for example, but the criminal intervenes and convinces the victim to redirect the payment into their account instead. The criminal may persuade their victim that the bank details of the person they intended to pay have changed. Businesses can also be tricked by this scam, when trying to pay a supplier. 6. Impersonation scam Someone pretends to be from the police or the victim's bank, to convince them to make a payment. Often, they will claim there has been a fraud on the victim's account and they need to transfer the money to a 'safe account' to protect their funds. However, the criminal actually controls the recipient account. Criminals may pose as the police and ask the individual to take part in an undercover operation to investigate 'fraudulent' activity. 7. Pretending to be from a legitimate company Fraudsters pose as organisations such as utility companies, communications service providers or government departments, and claim that the victim must to settle a fictitious fine or to return an erroneous refund. The scams can often involve the criminal requesting remote access to the victim's computer. 8. CEO fraud This mostly affects businesses. Criminals may access a company's email system or use spoofing software to email a member of the finance team, with what appears to be a legitimate email from the chief executive with a request to change payment details or make an urgent payment to a new account.

8 money scams and the warning signs we all need to look out for

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