In recent conversations with clients, an alarming trend has emerged: more clients are falling prey to scams. To combat this, I want to share some crucial advice on safeguarding your finances against fraudulent schemes, particularly those involving authorised push payments (APP). This is where you send money via a bank transfer to a fraudster, in the belief it’s a genuine transaction.
Choose a Compliant Bank:
It's vital to bank with institutions that adhere to the voluntary code of practice for APP scams. Banks enrolled in this code are committed to treating you fairly and must reimburse you unless you've been grossly negligent. For instance, TSB, a participant in the code, refunds 97% of its affected customers. In contrast, Monzo, which isn't signed up, has a much lower refund rate of just 22%. Most major high street banks are participants, and you can find a full list here: Which? Guide to APP Scam Protection. https://www.which.co.uk/consumer-rights/advice/what-to-do-if-you-re-the-victim-of-a-bank-transfer-app-scam-aED6A0l529rc
Preventive Measures to Avoid Scams:
Verify Bank Details Changes: Always confirm any change in bank details directly with your suppliers using a known and trusted phone number.
Beware of Unsolicited Communications: Exercise caution when dealing with unexpected emails, texts, or calls requesting personal or financial information. Always verify the sender's identity through official channels before responding.
Secure Your Transactions: When using banking or payment apps, ensure the legitimacy of the recipient and the security of the app. Double-check recipient details carefully to prevent sending money to imposters.
Scrutinise Investment Offers: If an investment opportunity seems too good to be true, it likely is. Conduct thorough research, verify the entity’s legitimacy, and consult with a financial advisor before committing your funds.
Act Fast on Suspicion: If you suspect you're the target of an APP scam, report it immediately to your bank, the police, and relevant anti-fraud agencies. Prompt action can help minimise losses and support efforts to track down the scammers.
Being proactive and informed can significantly reduce the risk of falling victim to financial scams. Let's stay vigilant and protect our hard-earned money.
