Four scams targeting older people – and how to beat them
It was 2020 and Christmas was just days away when Maggie* opened her front door to a police officer who told her that her bank account had been used to launder thousands of pounds. Not only that, but the culprit had, over a two-year period, also conned Maggie out of her life savings – a figure that totalled £150,000.
Like most scam victims, Maggie, who is in her 70s, never imagined it would happen to her. The experience left her reeling, both financially and emotionally. “I felt angry, ashamed and hurt… I’ve not told my daughter or any of my friends what happened.”
While Maggie’s story is shocking, it is sadly not uncommon. According to Age UK, the country’s largest charity for older people, one in 12 people aged 65 and over fall victim to a scam each year, while many others either don’t realise they have been defrauded or don’t report it. Millions more live in fear of it. Just this week, police said 70,000 people in the UK may have been victims of the iSpoof bank scam.
The cost of living crisis is leaving people even more vulnerable. “As people need more to pay the bills, they go for money-making ideas they wouldn’t normally consider. Sadly, many of those are fraudulent,” says Chris Brooks, head of policy at Age UK. And the stakes are higher than ever: according to research published by National Trading Standards last month, losing just £100 to a scam would leave one in four British adults in financial crisis.
Age UK, one of The Daily Telegraph’s charity partners this Christmas, offers older people advice on avoiding scams and helps victims rebuild their confidence and resilience. “Falling victim can be extremely damaging to people’s health and wellbeing – we hear from people who say it’s utterly ruined their later life,” says Brooks. “Even if you can adjust to the financial loss, the emotional damage is significant: it can stop you from trusting people.”
He says there is no shame in falling for a scam. “These are sophisticated criminals. They have so many tricks and strategies to persuade people to part with their cash. That’s why it’s vital people know what scams are out there and what measures they can take to protect themselves.”
Here, we look at four common scams and how to avoid them.
Energy scams
An email lands in your inbox, stating: “Claim your energy rebate now.” All you have to do is click on a link and claim £400 from the Government to help cover your soaring energy bills. You know you’re entitled to it and it’s so easy. Welcome to the thought process that scammers have relied on in recent months to steal access to thousands of people’s bank accounts.
“The Government’s £400 Energy Bills Support Scheme discount has certainly provided a new opportunity to scammers,” says Brooks. “Often it will arrive as an email or a text message, saying you’re entitled to a refund and asking you to click on a link and fill out your banking details to receive it.”
The initial message can appear very convincing, especially as they often claim to be from Gov.uk, Ofgem, or your energy company, and carry all the right branding. “This is a prime example of how agile scammers can be. We’ve seen it with Covid, the war in Ukraine and now the energy crisis – scammers will seize on something in the news and use it to try and take advantage,” says Brooks.
People’s worry over energy costs has led to a mushrooming of other “green scams” too. National Trading Standards recently reported an 85 per cent increase in scam calls offering grants for solar panels, loft insulation, spray foam and boiler replacements, calling it “a sobering barometer of the onslaught faced by vulnerable people across the country”.
How to avoid them
Never click on a link that purports to be a way of claiming money. Any rebate you’re owed from your energy company will be applied directly to your bill. Customers who use prepayment meters will receive theirs in vouchers.
Be alert to “green scams” and deals claiming to lower your home energy costs. If you want to undertake work to improve the energy efficiency of your home, get recommendations from friends or go to the relevant trade association’s website.
Phone scams
“Older people are particularly at risk of phone scams,” says Chris Brooks. “Perhaps because they’re less likely to be online and also because they’re more likely to use a landline.” These “cold calls” most often take the form of someone purporting to be from a reputable organisation like your bank. They’ll lure you in by telling you that your card has been cloned or that your account is at risk, and ask for your card details, perhaps even offering to send a courier to collect your card. These are all things that your genuine bank would never ask of you.
Be wary of anyone who calls claiming to be from HMRC, quibbling a tax bill or suggesting you qualify for a rebate. Likewise, keep your guard up if any phone call starts with the claim that you’re entitled to compensation – some may be genuine companies, but many people have been duped this way. Simply end the call and contact your insurance company directly.
It’s worth being aware that scammers now have the technology to mimic official telephone numbers, so a call might seem legitimate when the number flashes up on your caller ID display. Similarly, some scammers can now keep the line open, so that even if you hang up, you’re still connected to them. If you’re in any doubt, hang up and wait 10 minutes before calling the company directly.
How to avoid them
The Telephone Preference Service will drastically reduce the number of unsolicited calls you receive. Register for free at tpsonline.org.uk.
Ask your landline supplier if they offer call blocking services and if they don’t, consider buying a call blocker that will screen nuisance numbers.
If you feel uncomfortable or pressured by the person on the end of the phone, simply hang up. It might feel rude, but it’s your right to do so.
If you’re concerned, call the organisation they claim to be from directly. Find the number yourself – don’t use the one you were called from.
Remember that legitimate companies you deal with will never contact you and ask you to divulge passwords, pin numbers or account details. If this happens, put the phone down straightaway.
Spam scams
Last year, online shoppers in England, Wales and Northern Ireland were conned out of £15.3m over the festive period, with the average loss per person reaching £775. “Fake websites often spring up over Christmas,” says Brooks.
“People should be careful that the web address is preceded by “https”, which means the site is secure, and should also look out for poor spelling and grammar, which suggests that the content hasn’t been properly proofed – legitimate retailers are much more likely to check what they publish online carefully. If in doubt, don’t click on links within the website and try contacting the retailer over the phone.”
In fact, it’s wise to be suspicious of any email or message that contains a link – clicking on it might release a virus that can take control of your computer, scanning it for personal information, deleting files and sending our more spam. The same goes for attachments – don’t open them unless you know they’re safe and don’t reply, even if it’s just to say “no”.
Be especially suspicious of any contact from tech companies telling you to upgrade your computer’s anti-virus software – this is a common scam that can wreck your machine and compromise your personal data.
Social media has given us access to people all over the world, and as Maggie discovered, it can be very easy to fall into a relationship with someone using a false identity and a false story to manipulate you. “It’s definitely better to be safe than sorry,” says Brooks. “For example, conversations about financial difficulties, especially early in a relationship, can be a warning sign that all is not well. People should take a step back and consider whether they might be at risk.”
How to avoid them
When shopping online, use a credit card if you have one, as most providers protect online purchases and if your payment details are stolen, the thief won’t have access to your main account (as they would with a debit card).
Whenever you pay, look for the closed padlock symbol in the web address bar as it means your connection is secure.
Use different, complex passwords. Three random words combined with symbols and numbers is a good idea (eg Tree*Pasta!Blue5) and switch on two-step verification wherever you can.
Adjust your privacy settings when using social media, so that you don’t disclose any personal details. Avoid user names that include personal information (eg BrendaSmith1944).
Age UK provides computer training across the country – call 0800 678 1602 to find your nearest Age UK and ask about opportunities in your area.
Pension and investment scams
These scams can be devastating, says Brooks. “We’ve heard from people losing hundreds of thousands of pounds – sometimes their entire final salary pension – so it’s really important people are vigilant about anyone who contacts you out of the blue and starts offering high investment returns, loans or cashback opportunities.” If it looks too good to be true, it probably is.
There are lots of red flags to look out for: an offer of being able to get at your cash before age 55; the suggestion that you move all your money into a single investment; a courier being sent to your door with urgent paperwork to be signed; a firm only having a PO box address and mobile phone number as their contact details.
How to avoid them
Check the Financial Conduct Authority’s register of companies and individuals offering financial services. It also keeps a warning list of dodgy operators and has a tool to help you ascertain if an “opportunity” could be a scam: visit fca.org.uk/scamsmart.
Before you take up an investment opportunity, get a second opinion: scammers rely on pressure selling, but it’s always a good idea to take time to think and consult others.
Be aware that pension cold-calling is now illegal and should be reported to the Information Commissioner’s Office on 0303 123 1113.
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