It can be easy to think that fraud is something that happens to other people and that you’d know a scam when you see one. But the reality is that scams are on the rise and millions of people lose considerable sums of money each year.
Indeed, research from Citizens Advice reveals that around 9 million people in the UK fell victim to financial scams last year.
Of those who were scammed:
- 43% had to borrow money or increase their debt to make ends meet
- 24% relied on financial support from friends or family
- 20% had to take on extra jobs or additional shifts to help recover from their losses.
So, with the devastating potential of financial scams clear, it’s important to know how they operate, how to spot them, and what you can do if you are a victim of one.
Read on to discover six financial scams to watch out for in 2025.
1. Artificial Intelligence scams
The rise of Artificial Intelligence (AI) has brought new opportunities for fraudsters, who are increasingly using AI-powered tools to enhance their schemes.
AI scams may refer to several types of fraudulent activity that use AI to enhance the believability and effectiveness of the scam.
Here’s how scammers might exploit AI to improve their tactics:
- Phishing – AI enables scammers to write more convincing and natural-sounding phishing emails and text messages, making it harder for you to spot red flags.
- AI-generated images – Scammers might use AI to create eye-catching websites, social media ads, fake documents, and professional-looking headshots for social media profiles.
- Deepfake videos – Scammers may make AI-generated videos promoting fake or dodgy products and services.
- Fake and cloned voices – AI can also be used to generate or alter voices for video and phone scams.
Being aware of unusually polished content, discrepancies in visuals or vocals, and requests for sensitive information can help you identify potential AI scams.
2. Fake debt advice
This type of scam may target you if you search for debt help or advice online.
In this scenario, a fraudulent account posing as a legitimate financial adviser may contact you to offer assistance with your finances, including debt. However, their true intent is to trick you into providing sensitive personal information through fake forms or links.
Always be sure to verify the authenticity of financial advice sources and avoid sharing personal details with unsolicited accounts or platforms.
3. Friend-in-need scams
In these scams, a fraudster impersonates someone you know, such as a friend or family member, and says they are in an emergency situation.
The scammer might then ask you for money, claiming they urgently need it, or ask you to forward them your bank details.
To protect yourself, make sure you contact the person in question using a separate communication channel before you send them anything.
Never share bank details or other sensitive information before you know it’s safe to do so, even if the request seems to come from someone you trust.
4. Pension scams
Pension scams typically begin with an unexpected approach – often via phone, email, or social media – where scammers may offer you a free pension review or make enticing promises of high returns.
Once trust is established, they’ll try to persuade you to transfer your pension savings into poorly managed, high-risk, or entirely fraudulent investments.
In some cases, scammers may claim they can help you access your pension funds early, without fully disclosing the severe tax penalties and financial consequences involved. They may also charge fees for their “services” while funnelling the money into their own schemes.
To protect yourself, be cautious of unsolicited offers related to your pension and try to verify the legitimacy of the company or individual you’re speaking to. It’s also a good idea to speak to a financial planner before making decisions about your retirement savings.
5. Investment scams
Investment scams lure you in by promising lucrative returns or exclusive opportunities. Fraudsters will try to convince you to transfer money into funds that don’t exist, and may include investments into luxury goods such as gold, property, cryptocurrencies, or wine.
These scams often appear sophisticated, with professional-looking websites, brochures, or fake testimonials designed to build trust. However, once you transfer the money, it becomes nearly impossible to recover.
It’s a good idea to be sceptical of anyone approaching you with unsolicited offers or promises of guaranteed high returns. If it sounds too good to be true, it probably is.
6. Parking QR code scams
In this scam, fraudsters place counterfeit QR code stickers over real ones at parking facilities. Then, when you scan the fake code, you are directed to payment websites designed to steal your personal and financial information.
With the growing use of QR codes, these scams highlight the importance of exercising caution and care when making digital payments.
Try to verify that the QR code looks intact and legitimate before scanning. And, if possible, use official parking apps or websites to pay directly.
What to do if you’ve been the victim of a financial scam
If you’ve been a victim of a financial scam, the first step is to contact Action Fraud where they will record your crime, help you reclaim any lost funds, and use the details of your experience to protect others against similarly fraudulent activity.
If the fraud involves debit or credit cards, online banking, or cheques, contact your bank as soon as possible and let them know what has happened so they can freeze the affected account.
If you’re in an emergency situation and the crime is still in progress or you’re in immediate danger, call the police.
Get in touch
A financial planner can help you identify the warning signs of a financial scam, provide guidance on protecting yourself, and advise on the steps to take if you become a victim.
To speak to a financial planner, get in touch.
Email us at hello@vwmwealth.com or call us on 0141 229 4004.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
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.
Crypto assets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws.
