On 1 October, the government’s cap on energy prices came into force. It limits the amount you can be charged for a single unit of gas and electricity, meaning that a typical bill should not exceed £2,500 a year.

UK households will also receive a £400 discount on their energy bills. The amount will be paid in instalments, with the first payment due to appear on bills shortly.

You don’t need to apply for these measures, you are already eligible. But that hasn’t stopped unscrupulous scammers from taking advantage of the crisis.

Keep reading for a rundown of some of the latest scams fraudsters are using to prey on our financial concerns, plus how to protect yourself.

You don’t need to apply for the £400 energy bill discount

Rishi Sunak announced the £400 energy bill discount back in May. Energy suppliers are in charge of administering the payments, and most UK households – those who pay by direct debit, use “smart” pre-payments, or credit or payment cards – will receive the payment automatically.

If you receive an unsolicited contact about the discount, it could well be a scam and you should be immediately wary.

As the first instalments appear on bills, consumers have reported receiving text messages and emails requesting bank details. These reports have led to ministers issuing a scam alert, alongside a reminder that no household will be asked to provide payment details.

Be wary of any unsolicited contact

You might be contacted out of the blue by scammers via a telephone call, text message, or email. Unsolicited contact should always be a ref flag.

Cold-calling

If you receive a phone call from an unknown number, it’s ok to be wary. Take time to do some research. Scammers might claim to be from your bank, your energy supplier, the government, or even the police. Be prepared to take details from the caller and ring them back, ideally from another phone, and on a number you find yourself.

Scammers are tech-savvy and could intercept a call if you immediately ring back from the same phone. They might also be able to mimic trustworthy institutions by having the organisation’s name appear on your phone alongside the number.

Cold-calls about your pension should ring immediate alarm bells as the practice has been banned since 2019.

Scammers could call about anything and claim to be from any organisation but remember, genuine callers won’t ask for security passwords or bank details.

“Smishing” scams

The scam tactic of “smishing” refers to unsolicited contact received via text message. As with cold-calling, the sender can claim to be from any organisation, and use technology to ensure their message appears genuine.

They might try to panic you into replying using threats of fines or police intervention. You might be asked to reply with bank details or click a link to a website that will harvest your data.

Don’t reply to unsolicited text messages and never click on embedded links.

“Phishing” scams

Fraudulent emails can include links to fake sites too. These could appear genuine and ask you to submit personal information to receive a payment or avoid a fine.

Some viruses can automatically seek out your personal data and clicking a link could download the virus onto your device.

Remember that scam emails are designed to look real. Check the sender’s address carefully and compare it to those on official company sites. Spelling or grammatical errors might also indicate an email is fraudulent.

If you have any doubts, delete the email immediately.

“Take Five to Stop Fraud”

The Take Five to Stop Fraud campaign uses a three-step approach to help consumers think more carefully and avoid scams. The three steps are:

1. Stop

Scam emails and texts are designed to look genuine but can contain clues. Take a moment to stop and think about whether they might be fraudulent before replying or clicking links.

Cold-callers will try to pressurise you into making hasty, poor decisions. Time-sensitive offers of once-in-a-lifetime deals or calls at inconvenient times are intended to rush you or catch you off guard. Be sure to stop and think.

2. Challenge

Do your research. Don’t be afraid to take details and arrange a callback.

If an online investigation confirms the caller is genuine, they won’t mind waiting until you feel comfortable speaking to them.

A scammer won’t like being challenged so be prepared to hang up.

3. Protect

Taking the time to stop, think, and challenge should help prevent you from becoming a victim of fraud. You can also protect yourself by knowing where to turn for help and advice.

You can use the Financial Services Register to check that a company is genuine and authorised to offer the service they are discussing. The Financial Conduct Authority (FCA) ScamSmart page also has some useful information.

If you receive a fraudulent email purporting to be from HMRC you can forward it to phishing@HMRC.gov.uk before deleting it.

If you think you have already fallen victim, contact your bank immediately. You can also find information about reporting fraud on the Action Fraud website.

Get in touch

With the cost of living soaring and scams on the rise, protecting your money is more important than ever. With decades of experience, our Chartered Financial Planners have the expertise to help you make the best use of your money so get in touch and speak to us today.