People trying to earn extra money have been warned to look out for fraud.
A survey showed 56% of people are likely to look for opportunities to make extra money to combat the cost of living crisis, according to the trade association, UK Finance's Take Five To Stop Fraud campaign. One in six admitted they would respond positively if someone approached them offering a loan or investment opportunity.
The survey suggested young people specifically are more at risk of fraudulent exchange. Overall, three in five people said they are concerned about falling victim to financial fraud or a scam.
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Katy Worobec, managing director of economic crime at UK Finance, said: "The rise in the cost of living can be worrying and stressful and for many, keeping on top of finances might be a struggle. It's important for everyone to be conscious of criminals taking advantage of people's anxieties around finances by staying alert for fraud.
"We encourage everyone to follow the advice of the Take Five campaign - always be cautious of any messages or calls you receive and stop and think before sharing your personal or financial information. Avoid clicking on links in unsolicited emails or text messages."
Recent figures from UK Finance showed that £609.8 million was lost due to fraud and scams in the first half of 2022. It warned that criminals will always look to exploit situations where people are concerned about their finances, as was seen early on in the Covid-19 pandemic.
Take Five To Stop Fraud is warning of four key scams to be on the lookout for:
Purchase scams
42% of people expect to start to look for cheap deals online if the cost of living continues to rise, but they may be tempted by too-good-to-be-true offers.
Criminals will often trick people by enticing them to make a quick bank transfer rather than use a more secure payment method.
Impersonation fraud
Criminals convince people to make a payment or give their personal and financial details to someone claiming to be from a trusted organisation such as a bank, government organisation or energy company - for example, text messages claiming to be from the council offering fake energy rebates.
Investment fraud
As the cost of living rises, 14% of people said they may consider looking for new investment opportunities in the coming months, including investing in cryptocurrency.
With investment fraud, criminals try to convince people to move their money into a bogus fund or to pay for what later turns out to be a fake investment.
The criminal will often promise high returns to entice victims.
Payment in advance fraud
One example of advance payment fraud relates to loans, with criminals requesting up-front fees for loans which never materialise.
And to help people stay safe, the Take Five To Stop Fraud campaign advice is: Stop - Taking a moment to stop and think before parting with your money or information could keep you safe. Challenge - Could it be fake?
It is OK to reject, refuse or ignore any requests. Only criminals will try to rush or panic you. Protect - Contact your bank immediately if you think that you have fallen for a scam and report it to Action Fraud.
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