Financial frauds: How to spot a scam and protect your wealth
17 April 2026
You may have read recent reports about the worrying rise in so-called “friendship fraudsters”.
According to data from TSB, the average loss per friendship-fraud case is more than £3,100.
Often playing a long game, some fraudsters carry out their crimes over several years. Once they’ve gained their victim’s trust, the “friend” will initially ask for a seemingly small amount of money, before gradually increasing the regularity and size of payments.
The bank has shared several real-life stories to highlight awareness:
- One victim lost £4,000 after befriending someone on Instagram who said they needed urgent help with medical bills.
- Someone else in their late 60s spent four years talking to a scammer who claimed they were trying to flee an abusive family – the victim made a total of 60 payments to the fraudster.
- When one pensioner made friends with someone on Facebook, they were told they must send gift cards and money to the criminal, with non-payment resulting in the “friend” cutting contact.
Friendship fraudsters typically target older people who are lonely or bereaved, exploiting their isolation and desire for companionship.
How to spot a friendship fraud
Initial contact is often made through a Facebook group or via a direct message on Instagram.
Chances are the opening messages will have been carefully crafted by the fraudster, meaning they quickly lead the victim to believe they share common interests.
Although fraudsters will take some time before asking for money, once the relationship is established, they may try to keep the fraud going for years. They may do this by asking for constant small payments to pay for groceries. Alternatively, they may ask for a larger sum – for example, £500 for a flight so they can travel for crucial medical treatment.
What to do if you or someone you know is targeted
If a conversation with a new friend turns to money, cut off communication and end the relationship.
If you’ve already sent money and think you’ve been scammed, first report it to Report Fraud and talk to your bank.
Should you suspect a parent or other older relative is being defrauded, have a conversation about their new friendship. Look for gaps in the story and encourage your relative to question why that person is asking for money.
Finally, check that your relative’s social media settings are adequate and adjusted to maintain privacy.
Other common financial scams to look out for
Knowing what to look out for is one of the best ways to protect yourself from falling victim to a scam.
Financial scams have become increasingly sophisticated in recent years. Scammers often create credible-looking websites complete with testimonials and resources that make it almost impossible to distinguish them from a genuine provider.
Even the most financially savvy person could fall prey to a fraudulent scheme.
Investment scams usually work by enticing people with a legitimate-looking business and then convincing them to hand over money for amazing, too-good-to-be-true investment opportunities.
Meanwhile, pension scams typically entail fraudsters persuading you to cash out your pension early so that they can invest it for you at a higher rate of return. They may try to entice more money out of you by claiming that they can use a loophole to help you avoid paying tax, often for a fee.
Most financial firms operating in the UK must be authorised by the Financial Conduct Authority
The Financial Conduct Authority (FCA) maintain a register of legitimate authorised firms. If you’re ever unsure about whether a firm or offer being made is genuine, you can search for the company details on the register.
If you take financial advice from an unauthorised firm, you won’t be protected by the Financial Services Compensation Scheme (FSCS) if the firm goes out of business. You also won’t have access to support from the Financial Ombudsman Service.
If you have any doubts at all, check the Financial Services Register before you proceed.
5 top tips for spotting scams and stopping fraudsters in their tracks
- Stop – take a moment to think before acting and parting with either your information or your money.
- Challenge – ask yourself if it could be fake. If in doubt, reject, refuse, or ignore any requests coming your way.
- Don’t be rushed – Only criminals will try to apply pressure to rush you into making a decision. A genuine organisation will be happy to wait and allow time for you to call them back on a number you trust.
- Protect – Keep your money safe. Never reveal security details, such as your PIN or one-off card reader code.
- Listen to your gut – If something feels “off” and the offer sounds too good to be true, it’s probably a fraud. Trust your instincts and don’t be fooled.
If in doubt, call us first
Ultimately, if you’re unsure about a communication you receive, pick up the phone and talk to us.
We’ll be able to obtain the details and help you work out if you’re being targeted by scammers.
If you have already parted ways with money, there is no shame in speaking up and asking for help. Contact your financial planner right away, and report the crime to Action Fraud too.
There are no silly questions when it comes to your financial safety. If you’re concerned, email [email protected] or call 0161 8080200.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
