How to avoid scams and rip-offs


Updated on 16 July 2014

Worried about getting caught out by a scam or rip-off? Find out how to protect yourself.

Be careful with your personal details

Be careful what you give away

Banks and other financial institutions will never email you to ask you for your login details or personal security details so don’t hand them over.

Only divulge your card details in a telephone transaction when you have instigated the call and you are familiar with the company.

Guard your cards

When paying in a shop or restaurant, don’t let your credit card or debit card be taken out of sight. Always cover your PIN when entering it into a card reader in a shop or at an ATM. That way you’ll shield it from prying eyes and hidden cameras. And don’t put too many cards in your wallet – try to keep them separate.

Shred your documents

Make sure you shred all documents that show your name and address. This includes bank statements, letters from your doctor and utility bills. It’s also a good idea to shred receipts.

Use social networking sites carefully

If you use social networking sites, such as Twitter and Facebook, make sure your privacy settings are as high as possible and limit the information you publish on these sites. Avoid publishing your address, phone number and full date of birth and don’t advertise when you’re off on holiday.

Check your statements

Always keep a close eye on your bank and credit card statements to see whether any unusual transactions have been carried out. And tell your bank immediately if you spot anything suspicious.

A really easy way to keep an eye on your transactions is with the lovemoney MoneyTrack tool which amalgamates information from all your different providers, allowing you to see all your different statements at a single glance, with a single log-in. (You can also categorise all your transactions, so you'll know immediately if some of your spending seems out of place.)

Always read the small print

Whenever you sign up for anything, make sure you read the small print thoroughly. Yes, it’s boring, but it should help to prevent you getting caught out.

Look out for any unexpected fees you might be faced with and keep an eye out for rolling contracts, where your contract automatically rolls over for another year and you’ll be charged a hefty fee to get out of it.

Stay safe online

There are various ways to ensure you stay safe online and reduce your chance of being scammed:

Do your own research

Don’t be hasty

Never agree to anything in a hurry. If you’re being offered something on the doorstep or over the phone, take time to think about it. If you’re being pressurised to make a decision on the spot, chances are it’s a scam.

Read the terms and conditions of the deal carefully, find out what your rights are, and shop around to see if you can find a better deal.

Loyalty doesn’t pay

When it comes to financial services, loyalty is for losers. Leave your money in the same savings account for several years, and watch the interest rate plummet. Stick with your motor or household insurer, and see your premiums soar. Meanwhile new customers get all the best rates.

It shouldn't be this way, but it is.

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