New government action means this could be your last ever cold call
News that the UK government will fully ban cold calling for all investment products is overdue and welcome. Why? Because fraud accounts for over 40% of all crime, and costs the country nearly £7bn each year. Directly and indirectly, we all foot that bill.
According to a report by Citizens Advice, some 3.2 million people in the UK fall victim to scams each year. Fraud is nothing if not innovative, and ONS crime stats lay out how dramatically cyber and phone-based scams have increased their market share. In fact, AI-voice scams are a new frontier we need to all be wary of. It turns out we can’t even trust our ‘loved ones’ on the phone …
The starting point in many financial scams is an unsolicited phone call or text message – and the end point is the average victim losing £1,100.
Aside from the fact that fraud funds organised crime and terror, it can, in mere seconds, change lives irreversibly. Banks offer limited recourse and many scammers – by warping their phone numbers and fronting as legit companies – can effectively hide their footprints to escape the long arm of the law.
UK Fraud Squad goes global
Speaking of the law, the UK government’s plan to tackle scams includes the launch of a new National Fraud Squad, complete with a £30m, state-of-the-art reporting centre and the promise of much greater integration with partner agencies around the world.
The idea is that citizens can more easily report fraud and authorities have more intelligence, resources and nous to bring fraudsters to justice and disrupt operations that are just as global as any other multibillion dollar enterprise.
All in, it sounds like a step in the right direction, and this early focus on cold sales of crypto and insurance will particularly protect the vulnerable and elderly from being sucked in by scammers.
Because as much society might measure the costs of fraud in pounds and pence, the damage goes much deeper …
Emotionally defrauded
Being a victim of fraud can significantly impact a victim’s financial health. Lost funds, lost nest-eggs, even lost homes. Falling to a fraud can also hurt a person’s credit rating and that spells bad news for future financial decisions and maybe even future employment.
In essence, losing money to a scam can be just the start of the ordeal.
Because fraud also packs a seismic punch to victims’ emotional wellbeing. A late 2022 Which? study revealed that 71% of fraud victims said their experience had had a detrimental impact on their stress levels and 63% said it was harmful to their mental health.
In fact, 39% said the experience even went on to damage their physical health. Their physical health.
Embarrassment is another, perhaps subtler, consequence in the fraud mix that’s very real and actually compounds the problem.
Phone and online scams aren’t new. Your average bear knows they happen and knows to be wary. Hence why nearly one in five (19%) victims – including savvy, educated, worldly people – felt so embarrassed about being scammed that they didn’t report the incident.
They didn’t act, the crimes weren’t logged, and no doubt the fraudsters hit again …
How to take control of fraud
If you’re a victim of fraud, there’s a sequence of steps you can take to contain the damage – emotional and financial – for yourself and others. You’ll also give yourself a better shot at recovering what’s lost.
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- Report the fraud: tell your bank or credit card provider, and the relevant authorities which, in the UK, is Action Fraud. Acting immediately will help to halt the fraud in its tracks and may assist you in recovering lost funds.
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- Freeze your credit: consider freezing your credit, AKA make it impossible for a perpetrator to borrow money or open new accounts in your name.
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- Change your passwords: by immediately changing passwords for all your online accounts – and enabling two-factor authentication where possible – you’ll make it much harder for fraudsters to go deeper than they already have into your accounts and your life.
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- Seek emotional support: as above, being a victim of fraud can be traumatic and the impacts long-lasting. So seek emotional support from friends, family, or a professional to help you cope in the aftermath.
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- Stay informed: keep up to date with the latest fraud prevention advice and stay alert to new scams. If someone is walking about with your details, they may try to work a new angle. If a fraud happens once you may think a repeat is unlikely but in many ways the chances actually increase.
If you think you’ve been a victim of fraud, it’s important to take action as soon as possible. The quicker you act, the better your chances of preventing further losses and recovering any stolen funds.