The cost of living crisis continues to sweep the country, with inflation rates rising and households struggling to stay afloat.
However, scammers have seen this as an opportunity to prey on the vulnerable with a reported 40,000 Brits being targeted.
With this in mind, the experts at Proxyrack have shared their insight on the cost-of-living scams you should be aware of and how to prevent being caught up in one of these scams. Ariana Bago, Fraud Analyst at Proxyrack, said: "Since the announcement of further cost of living payments for eligible households, scammers have taken this opportunity to target the vulnerable groups most affected by rising inflation across the UK.
"Therefore, households need to remain vigilant and aware of the potential scams they may be at risk of during this time. An aspect of the cost of living payments everyone must be aware of is that eligible households will automatically receive this money. There is no need to sign up for anything or apply to receive these.
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"If you are contacted by someone who is asking for your personal information and bank details in order for you to be eligible for the upcoming payments, this is likely a scam and you should not share any of these details, especially if you are unsure.
"If you receive correspondence from someone claiming to be from HMRC or from someone wishing to discuss your payments, be careful not to respond to these messages or open any links sent to you relating to this. Scammers can send viruses or hack into your details through links and open, digital discussion so being aware of these potential risks is key to lessening and hopefully avoiding these scams."
Five cost of living scams you should be aware of:
1) Bank Detail Requests
The cost of living payments do not require an application and will automatically be sent to eligible households. If you receive an email or message asking for your bank details in order to receive these payments, this is likely a scam and you should not share any of your personal details.
2) Suspicious Links
Scammers may contact you asking you to follow a link in order to apply for these cost of living payments or to receive insight into the support. Be sure to check the sender's details and avoid clicking any links if they appear suspicious or are from an unknown source.
Scammers can use links to hack into your system and personal details which put you at risk of fraud.
3) Fake Investment and Get Rich Quick Schemes
In a time of financial vulnerability across the country, scammers are likely to use false investment schemes to entice those into giving them money with the promise that they will receive more in return. These are often a way for scammers to have people willingly hand over money, be sure to do your research into these schemes as it is unlikely a genuine money-making scheme will approach you first.
4) Rebate Scams
The promise of money can be an enticing one, and scammers often capitalise on this, claiming to offer rebates, be that tax rebates or refunds for purchases. Be sure to do your research into these messages and offers, ensuring they are from a reliable source that is relevant to your past transactions.
It can also be worth contacting the ‘sender’ directly through their site, for example, if a shop has emailed you, contact them via their official details to ensure these offers are legitimate.
5) Shopping Scams
Some scammers will target those trying to save money by offering products for extremely low prices or deals. However, it is possible that these products do not exist and the seller is going to take your money without giving you anything in return.
Do your research into the seller and the site you are planning on ordering from, if it doesn’t feel legitimate, don’t take the risk
