5 current scams to be aware of in 2024, and how you can keep your money safe

28/03/2024

Fraudsters are always innovating new ways to try and get you to part with your wealth. Discover some of the latest scams in 2024 so you can keep your money safe

Scams and fraudulent activity have been around for centuries. According to Experian, the earliest-recorded attempted scam occurred in 300BC when Greek sea merchant, Hegestratos, took out a form of insurance on a ship he then planned to sink.

Hegestratos was ultimately not successful, as his crew caught him before he could sink the vessel. But the story shows how truly endemic financial scams are, and why it’s crucial to be aware of them.

These days, as new technology emerges and becomes more accessible, scams are becoming increasingly sophisticated. Fraudsters are now able to achieve highly complex feats, making it all the more important to familiarise yourself with their current methods.

Read on to discover five prevalent scams in 2024, and how you can protect your wealth.

1. Deepfake scams and celebrity endorsements

A “deepfake” is an artificially generated video of a person that shows them saying or doing things that they did not do – the easiest way to understand deepfakes is to think of them as the equivalent of photoshopped images but for video.

You may have seen deepfakes in the news in the past couple of years as their use has become more prevalent. A notorious video of financial journalist Martin Lewis circulated on social media in July 2023, in which he appeared to recommend an investment opportunity offered by Elon Musk.

The opportunity was of course fake, and anyone who pursued it would have lost their money.

A similar scam appeared on social media in January, claiming that ITV News political editor, Robert Peston, was being sued by the Bank of England after allegedly revealing a get-rich-quick scheme on live TV.

Again, anyone who looked to make the most of that opportunity will also have lost money.

If you see this type of celebrity endorsement online, either in the form of a video or an article, always pause first and think: how likely is it that this is true?

Consider asking someone you trust what they think before you act, and don’t click any links unless you’re certain they come from a legitimate source.

2. The “Hi Mum” text message scam

The “Hi Mum” or “Hi Dad” message scam typically involves you receiving a message purporting to be from someone you know – often your child – telling you that they’ve lost their phone or wallet and are messaging from their friend’s phone. They will then usually ask you to send them money to help them get home.

This scam was particularly popular last year, with the Guardian noting that UK consumers had lost as much as £500,000 to it by July 2023.

It can be disconcerting to receive a message like this as you might think your child is in danger. However, it’s worth taking a breath before you transfer money.

Always try to contact your child first so you can ascertain whether it is really them – calling their real number and them picking up would be enough proof that this is a scam – and never send money straight away, especially to an account of someone you have never heard of.

If you think you have received a message like this, make sure you block the number and report it to your phone provider if you can.

3. QR code phishing

Scammers often use the technique of “phishing”, in which they pretend to be a legitimate company or individual via email. They will often ask you to click a link or send money to an account through this method.

Now, these scams have become even more complex, performing the same technique through QR codes. This will usually come in the form of an email, and are less likely to be automatically identified as fraud by your email account than it might if it is a link.

Often, it will still involve someone pretending to be a person or business you know, encouraging you to scan the code for some form of reward. Instead, the scammer may then be able to steal your personal information or spread malware to your device.

Just as you wouldn’t click a suspicious link, never scan a QR code unless you’re certain you know the source and what will happen when you do so.

4. Romance scams

Valentine’s Day in 2024 may now be in the rearview mirror, but fraudsters may still attempt to use romance scams throughout the rest of the year.

You may be contacted out of the blue, or you might be looking to meet someone. Either way, these scams usually involve someone building a relationship with you online.

The scammer will use images of other people and pretend to be interested in a romantic relationship, using emotive language to create a bond of trust.

They often will then start making financial demands, asking for money to pay for pressing costs or claiming that they need your card or bank account details.

To protect yourself from romance scams, it’s important to never send money or give your financial details out online, especially if you’ve never met the person.

5. Investment scams

Investment scams are some of the most common and ever-present forms of scams that it’s always important to be aware of.

Fraudsters will use claims of market-beating returns to convince you that they have access to a unique investment opportunity. There may be time pressure attached to this, too, and you might even briefly be paid a return if you do invest, using money from new investors to pay you a small amount back.

However, in these cases, it’s likely that there is no investment opportunity. Instead, the scammer will take your money and disappear.

Scammers often use real-life investments to make their approaches seem realistic. For example, the value of many cryptocurrencies did increase throughout 2023, and some have reached record highs in 2024 so far. As a result, they have been popular in the media, with many news outlets reporting on them and their performance.

This can make them a topic of interest for scammers, capitalising on this public interest and attempting to scam your wealth from you.

There are similar issues online with property investments. You may well have seen adverts or videos of people claiming that their investing technique could generate a guaranteed 10% every year on property investments.

Sometimes, these aren’t even scams, but simply people over-promising what could actually happen.

Be mindful of ludicrous claims about absurd or guaranteed returns and always remember the golden rule: if it looks too good to be true, it probably is.

If you’re ever unsure about something you see online, or you’re approached by someone out of the blue, it’s always sensible to take a moment and check whether it is legitimate.

Working with a financial planner can help you save and invest with confidence

One of the most sensible ways to avoid falling victim to fraud is to work with a financial planner.

At Douglas White Financial Planning, we can help you save and invest for the future. We’re an experienced firm with the necessary qualifications and accreditations for providing financial advice.

We can also help if you do ever come across financial opportunities you’d like to explore, and provide guidance as to whether they are legitimate.

Email info@douglaswhiteltd.com or call 0151 345 6828 to speak to an experienced adviser today.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.