Beware of Scammers: How to Protect Your Hard-earned Money

A recent study by Canada Life has revealed that over four in 10 adults in the UK have fallen victim to scam attempts in the last year. This means that approximately 26.8 million people have experienced or know someone who has experienced a financial scam. Scammers are becoming increasingly sophisticated, with more than a quarter of victims unable to recover their losses. In total, £17 billion has been lost to scammers, highlighting the urgent need for individuals to protect themselves from financial fraud.

What’s Happening?

  1. The rise of phishing, smishing, and vishing:
    Of the scam attempts, 40% were made through email, text, or voicemail, commonly referred to as ‘phishing, ‘smishing,’ or ‘vishing.’ These fraudulent techniques aim to deceive individuals into providing personal information or transferring money to scammers. It is essential to remain vigilant and verify the authenticity of any communication that asks for financial details or urges immediate action.
  2. The most common scams:
    The study identified three prevalent types of scams: tax or debt collection attempts (32%), advance fee requests (25%), and ‘hello mum’ scams (23%). ‘Hello mum’ scams involve scammers posing as relatives in urgent need of financial assistance. Young people are particularly vulnerable, with one in three students falling victim to scams, according to separate research by NatWest.
  3. Vulnerability of older adults:
    Although younger demographics are more likely to be targeted, individuals aged 55 and over are more likely to receive scam attempts. However, they are less likely to fall victim and lose money. Notably, 38% of older people do not report scam attempts, which highlights the importance of raising awareness among this age group to encourage reporting and protect them from financial losses.
  4. The increasing role of Artificial Intelligence:
    One key concern is that scammers are exploiting Artificial Intelligence (AI) to make their scams more sophisticated. Approximately 7% of scam attempts were made using AI, leading to the belief among two-thirds of UK adults that AI will lead to more sophisticated financial fraud. Increased awareness is crucial to ensure individuals do not fall prey to these technological advancements in criminal activity.
  5. Expert recommendations to avoid financial scams:
    Canada Life has provided some practical tips to help individuals protect their hard-earned money from scammers:
    a) Avoid engaging with offers to access pension savings before the age of 55, as this is rarely legitimate.
    b) Disregard high-pressure tactics and claims of limited-time deals, as they are often used to exploit individuals.
    c) Be cautious of unsolicited contact from HMRC, as they primarily contact individuals through postal mail.
    d) Hang up the phone if you suspect a call to be suspicious.
    e) Report suspicious text messages to your phone provider using the SPAM reporting service (forward the message to 7726).
    f) Exercise caution when faced with offers promising exceptionally high investment returns or the opportunity to withdraw your entire pension savings.


The prevalence of scams in the UK highlights the importance of being cautious and vigilant when it comes to financial transactions. With scammers becoming increasingly sophisticated, it is crucial to familiarize oneself with the common types of fraud and stay updated on the latest prevention measures.

By following the expert recommendations provided, individuals can protect their hard-earned money from falling into the hands of scammers. Taking active steps to safeguard personal finances is the key to avoiding financial scams and ensuring a secure financial future.