Why spotting a financial scam could be harder than you think

Most people are confident they could spot a scam if they were targeted. However, it could be more difficult than you think, especially as fraudsters are increasingly using sophisticated techniques to mislead victims.

According to a survey from Which? (7 April 2025), 9 in 10 people believe they could identify a scam email or text. Yet, it only takes a single oversight to become a victim. 1 in 7 people say they’re sent scam emails a few times a week, so it’s easy to see how you could overlook a red flag you’d usually recognise.

The consequences of falling victim to a scam could be devastating.

An article from the BBC (15 June 2026) notes that scammers stole almost £1.3 billion in 2025, with nearly eight cases of fraud reported, on average, every minute.

It’s not just the financial loss that affects victims. Scams may also cause emotional damage, with some of those affected reporting feeling shame or guilt. Victims may also find it difficult to manage their finances or make financial decisions.

Being aware of scams and how fraudsters might dupe you is one way to protect yourself. Over the next few months, read our blog to find out more about the different types of scams and the steps you could take to reduce your vulnerability to them. Now, read on to discover some of the psychological tricks that fraudsters might use.

7 ways a scammer may try to trick you

Financial scams are increasingly sophisticated, and fraudsters use several tactics to encourage you to transfer money or share sensitive data. Here are seven of the tricks they could deploy.

1. Creating a sense of urgency

If you believe you’re in a situation where you need to make quick decisions, scammers know you’re less likely to ask questions or fully assess your options. So, they might create a sense of urgency, such as claiming your bank account will be frozen if you don’t act or there’s only a limited time to invest in a lucrative opportunity.

2. Using your trust in authority

If you’re told by HMRC you owe money or by the police that there’s a problem with your bank account, you might be more likely to trust the message because of the organisation you believe it’s coming from.

Fraudsters may use this trust by impersonating a person in an authoritative position. This might take the form of a phone call, or an email that’s designed to look like it’s come from a particular organisation. Fraudsters can even use number spoofing to make it seem as though the call is coming from the correct number if you check it.

3. Playing on your desire to help others

Many people would offer to help someone who is in need, particularly if they are a family member or friend.

Knowing this, scammers have been known to impersonate loved ones in a bid to gain access to your finances. Alternatively, they might pose as a charity or other organisation you’d like to support.

4. Manipulating your emotions

Emotions affect the decisions people make. For example, when you’re fearful or excited, you might act more rashly than you usually would. Scammers may use this knowledge to manipulate their victims.

5. Building a rapport over time

We often think of scam attempts as a single message that pops up in your inbox or a one-off call. However, some scammers use strategies that last for weeks or months to build up a rapport and gain the trust of their victims.

This is often the case in romance scams, where the victim may believe they’re in a genuine relationship. Investment scams might extend over weeks. For example, you might make an initial investment that appears to deliver returns, which encourages you to hand over larger sums.

6. Exploiting a lack of financial knowledge

Many people aren’t confident discussing or managing finances, which provides fraudsters with an opportunity. They might use complicated language or misrepresent rules to give the impression that they’re experts who can be trusted.

For instance, they might claim there’s a loophole that allows you to access your pension early, enabling you to retire sooner. Someone who is not fully aware of how and when their pension may be accessed could fall for this.

7. Persistently contacting victims

One trick that fraudsters use is to cast their net wide. While you might usually be savvy and able to easily spot a scam, if you’re tired, stressed, or your attention is simply elsewhere, you may not spot the usual warning signs.

We could help you identify scams

If you receive communications that you’re unsure about or you want our support in assessing opportunities, we’re here to help you. Seeking the view of another person could highlight signs of a scam you might have overlooked.

Next month, read our blog to find out more about the different types of scams that fraudsters could use to target you and the red flags you should be aware of.

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.

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