It seems fraudsters are coming up with increasingly smarter ways to part you from your money. Don’t let it happen to you with our round-up of some of the most common scams around – some you may have heard of, but others may come as a surprise.

Scammers are getting more and more crafty, using tools like the internet, new technology and mobile phones to con people out of their cash.

They are so successful because they make exciting promises, look and sound professional, and use fake deadlines to create a sense of urgency and a fear of missing out. Often, they also offer fake money back ‘guarantees’ to make you feel secure. Read on to find out more about the most widespread scams.

Internet Phishing Campaigns

The most common types of fraud now take place online and cases are rocketing, with over three million offences being recorded last year, according to the UK Cybercrime report.

Fraudsters have set up hundreds of spoof internet sites and email scams posing as banks or government agencies requesting confidential information from you – known as phishing. They often use fake internet sites that look similar or exactly the same as normal banking sites to encourage you to enter your details directly.

And once they have your details, scammers can steal money out of your bank account and even apply for loans, credit cards and other products in your name, leaving you with the consequences.

“Phishing is when a hoax email asks the recipient to click on a web link and input their account details,” explains Chris Williams at uSwitch.com. “This criminal activity is a huge concern and it’s growing at a staggering rate.”

Already, secure online payment system PayPal estimates that more than 27.4 million people in the UK have received a phishing email at some point, yet almost half of Brits don’t know what phishing is. And because the emails look and sound so convincing, it’s difficult not to be tricked into responding to them – as around 1 in 20 people do.

To prevent it happening to you, read our top tips on how to tell whether an email is real or a fake and avoid becoming a victim of internet fraud. Click Here

Credit Card Cloning

Chip and PIN reduced the risk of card fraud, but scammers are still able to copy the magnetic strip details on a card, creating an identical version – and ATMs are increasingly targeted with hidden cameras and cloning equipment. Once details have been recorded, it’s easy to steal thousands from your account, especially abroad.

Nearly 1 in 5 people have had their cards cloned at ATMs and Chip and PIN machines, with the top 5 crime hotspots being London, Birmingham, Manchester, Bristol and Cardiff, according to research from Life Assistance company CPP.

Worryingly, the majority of victims don’t even realise their details have been swiped until their bank statements arrive or they are informed by their bank. And even once they discover there is a problem, it takes Brits on average 10 hours to inform banks or card companies.

"Card fraud is a serious concern that is still common despite preventative measures put in place to combat this, including Chip and PIN,” said Zoe Manton, head of Card Protection at CPP. “Fraud levels increased by 26% in the first six months of 2007 compared to the same period in 2006, to reach £264m.”

Prevent it happening to you by using your hand to cover your pin number in shops and at ATMs, preventing it being spotted by hidden cameras. Also, don’t let your card out of your sight at shops and restaurants, as this is a perfect opportunity for scammers to clone or copy your card.

To read more about cloning, Click Here.

Bogus Holiday Providers

Earlier this year, a gang of internet travel fraudsters were prosecuted for running fake online holiday companies, which advertised travel bargains that lead customers to pay millions of pounds of cash for holidays that did not exist. And although they are now out of action, there are still several bogus holiday providers advertising on the web.

To prevent it happening to you, follow these tips from travel association ABTA: Make sure the travel company is an ABTA Member, or when buying flights and accommodation together, look for an ATOL logo and number. Then, before you part with any money, check these up with ABTA (www.abta.com) or the CAA (www.atol.org.uk). You should also be sent a confirmation document from the travel organisation with receipt of money you have paid. Check the names on the documentation match with who you’ve paid, and check your bank and credit statements carefully.

The Office of Fair Trading (OFT) has also warned of bogus holiday clubs operating in Spanish holiday resorts, including Malaga, which cost EU consumers billions of euros every year. An estimated 400,000 UK consumers fall victim to the scam each year, costing a massive £1.17 billion. Bogus holiday club representatives use high pressure selling tactics to dupe holidaymakers into signing expensive fake holiday club memberships.

According to the OFT, consumers are typically approached by 'scratchcard touts' whilst on holiday. The card will always be a winner and to collect their prize they are persuaded to attend a presentation on a 'great new holiday concept' – and bullied into joining the fake clubs.

The OFT says other common online scams include:

• Prize draw and sweepstake scams, most notifying consumers of a fake cash prize in return for a fee and costing Brits £60million every year.
• Miracle health and slimming cure scams - consumers are promised a health 'miracle' to cure baldness, cancer, impotency or promise easy weight loss. Around £20million a year is spent on these scam products, some of which are even dangerous.
• Clairvoyant mailings; letters from a so-called psychic offering predictions for payment. It costs UK consumers £40million a year.
• Fake foreign lotteries, where consumers receive a letter, phone call, or email telling them they have won a major payout in an overseas lottery, and are asked to send money to cover administration or taxes. The winnings are never received, and cost £260 million every year.

Boiler Room Scams

Boiler rooms are illegal overseas groups using hard selling techniques to persuade UK investors to buy virtually worthless shares – and even though they usually target experienced and successful investors, people who fall victim to boiler room scams lose on average £20,000, according to the Financial Services Authority.

They say that in the majority of cases, the shares are worthless and the boiler room vanishes, leaving the investor out of pocket. But because boiler rooms are based outside the UK and not authorised by the FSA, they can’t shut them down.

"Boiler rooms can be lucrative operations that fraudulently earn serious money. £20,000 is a shocking sum and far more than most people can afford to lose,” said Jonathan Phelan, Head of Retail Enforcement at the FSA. "Sadly, victims are unlikely to see their money again because their shares will have been overpriced and nearly impossible to sell. Boiler room salesmen won't take 'no' for an answer. They will constantly call a target, trying to build a relationship and get their confidence. They will appear knowledgeable and highly professional but they are only interested in taking your money."

Plus, boiler rooms may even use a marketing firm to contact targets on their behalf, and move from operation to operation taking lists of potential targets with them – so once you've fallen for one boiler room there is a greater chance you will be targeted a second time.

Spot a boiler room: Boiler rooms are not authorised by the FSA, are most likely to claim to be based in Spain, the US or Switzerland, will call you out of the blue or a marketing firm will call on their behalf, and usually could pursue you for at least a month, even if you don't invest.

But boiler room scams don’t only target big investors – small businesses could be at risk too. According to the FSA, boiler rooms often approach a small UK company and propose to raise capital by selling £100,000 worth of shares in that UK company on their behalf. Of this £100,000, the boiler room would take 60% as their fee, leaving the small company with £40,000 capital. In reality, the boiler room will cold call UK investors to sell the shares at anything from 10 to 100% over and above the agreed price, take their fee and vanish. And worryingly, in some circumstances, the investor can demand a refund from the UK company, which may then be required to pay back the full price of the shares sold, even though it only received a very small percentage of the takings.

Prevent it happening to your business by seeking your own legal advice and checking very carefully who you are dealing with before you allow them to sell shares or find potential investors on your behalf. If you are a private investor, always double check the credentials of those trying to sell to you: be wary of cold callers, especially those who continue to pester you.