How to Identify A Phone Scam This Christmas

Phone scams are a common way for criminals to deceive unsuspecting victims, often aiming to steal money or personal information. 

Sometimes, it can be difficult to distinguish between a phone scam and cold calling. A cold call is an unsolicited phone call from a company or individual you’ve never interacted with before, usually attempting to sell you something. However, it’s crucial to recognise the warning signs of a phone scam to avoid falling victim and losing your hard-earned money.

In light of this, Matthew Yates, VP of Engineering at MaxContact, a contact centre software specialist, highlights the most common types of phone scams consumers should be aware of:

• Impersonation scams: an unexpected call from a scammer claiming to be from your bank’s fraud department, urging you to transfer money to a ‘safe’ account, only to vanish with your money. It’s likely scammers will be impersonating the police, utility providers, or government departments during these calls.
• Debt collector scam: involves someone pretending to be a legitimate debt collector and pressuring you to pay a debt you do not owe. They use threats and aggressive tactics.
• HMRC scams: scammers may call claiming to be from HMRC, accusing you of underpaying your tax. They may leave automated voicemails threatening legal action or send emails and text messages urging you to call a fraudulent number.
• Investment and financial scams: these scam calls typically involve someone calling unexpectedly with fake investment opportunities that promise high returns or safe, risk-free opportunities but are designed to steal your money or identity. 
• Prize draw scams: a phone call claiming that you’ve won a prize or the lottery, with the fraudster inventing a story to hide the fact you don’t remember entering a competition. They typically ask for your personal or financial information to receive the prize or money.
• Charity scams: occur when scammers impersonate legitimate charities to solicit donations over the phone, typically using emotional appeals. The hoax calls usually claim to support causes such as medical research, disaster relief, or community aid.

Below, Matthew has listed important questions you should ask to help verify whether you’re being scammed or simply dealing with a cold call:

Ask for the caller’s name and employer

One of the first things you should do if you suspect you are being scammed over the phone is ask for more information about the caller and their employer. If they hesitate or refuse to answer, this could be a sign you are being scammed.

If they give you their name and employer, tell them you’ll research their company before agreeing. You can also call the company’s main office to verify if they are legitimate.

Ask for proof of their location

If you suspect the call may be a hoax, another important question to ask is for proof of their location. If the caller is evasive or tries to change the subject, this could be a red flag indicating a scam.

Ask what the purpose of the call is

If the caller immediately asks for personal information or money, this is a strong indication that it may be a scam, particularly if you haven’t heard of the organisation before.

Before providing any details, ask what the purpose of the call is to better understand the situation. Based on their reaction, you should be able to determine whether it’s a legitimate call. It’s unusual to give personal details or money over the phone to an unknown person.

Find out more about the business or organisation they claim to represent

If the caller is requesting donations for a charity or claiming to be debt collectors, you should ask for more information about the organisation. For example, how much of your donation goes towards the charity’s mission or what the total amount owed to the debt collectors is, including fees and interest.

You can also take the time to research the organisation yourself if you’re still unsure whether they are legitimate.

Ask for a reference number

If you wish to research the business, organisation, or even the caller to verify they are who they claim to be, you can always ask for a reference number for the call. This allows you to get back to them in the future, should you decide to follow up.

Expert tips to remain vigilant and keep yourself safe from phone scams:

Be sceptical of unknown callers. If it’s legitimate, they will likely have a Caller ID and leave a voicemail.

Never disclose personal or financial information over the phone. If you’re at all suspicious about the call, end it immediately and block the number.

If you believe a call to be fraudulent, report it to Action Fraud via their helpline or website.

Be wary of urgent requests. Scammers usually create a sense of urgency to trick victims into making quick decisions.

Disclaimer: This article is for educational purposes only. While we aim to provide accurate information on recognising phone scams, we cannot guarantee complete protection against them. 

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