Fraud and Security
Our primary aim is to build financial resilience and wealth for our customers. This means we want to ensure you feel confident and safe when making investing decisions. On this page you will find some useful information on how to stay safe from fraud.
Be fraud aware
Fraudsters target innocent people using a wide range of methods and schemes. Most of these involve direct interaction with an unsuspecting victim, with the aim of obtaining personal information or gaining trust that can later be exploited for fraudulent purposes. Below are some common fraud scenarios that you should familiarise yourself with:
Investment scams
Scams involve fraudsters tricking people into sending money or making investments into accounts they control. This is often done by gaining trust through false celebrity endorsements, fake websites, or misleading advertising campaigns designed to appear legitimate. For information on scams and what to look out for, check out the Scam Smart tool on the FCA website.
Red flags
- Claims that the scheme or offer is celebrity endorsed.
- Time pressured limited deals that are high return and low risk.
- Unsolicited investment opportunities on social media or via email or instant messaging.
- Company cannot be contacted or contact details are only mobile numbers or PO boxes.
- Involves overseas investments and/or early access opportunities.
- Requests to keep the opportunity confidential or not to discuss it with friends, family or a trusted advisor.
Protect yourself
- Take your time. Research the company, only a fraudster will rush you.
- Do your research. Check the company’s website and contact details to ensure they exist and are credible. You can use the FCA firm checker to make sure the company is regulated
- Avoid links within ads and social media about investment opportunities.
- Be cautious, especially of opportunities endorsed by celebrities – if it sounds too good, it probably is.
Pension scams
Fraudsters may also target your pension, using tactics similar to investment scams. These scams often promise early access to pension savings through so-called loans, cash incentives, or legal loopholes. Victims are persuaded to transfer their pension into unregulated or non-existent schemes, which can result in significant tax charges, high fees, and the loss of their retirement savings. For information on scams and what to look out for, check out the Scam Smart tool on the FCA website.
Red flags
- Promise of early access to pension savings without tax charges or penalties.
- Guaranteed high returns with little or no risk.
- Use of terms such as “pension liberation”, “loan”, “loophole” or “savings advance”.
- The firm is not FCA regulated. You can use the FCA firm checker to make sure the company is regulated.
Protect yourself
- Seek impartial advice before any decisions to transfer your pension.
- Research both the firm and the pension scheme to ensure they exist and are authorised and regulated.
- Avoid clicking on links in advertisements or social media posts promoting investment or pension opportunities.
Account takeover
This type of fraud occurs when a criminal uses your personal or account details to gain access to your account. They may then change your contact or payment details, allowing them to carry out transactions without your knowledge.
Red flags
- You stop getting any communication from us (such as annual statements).
- You are unable to sign into your account with your usual credentials.
- Account details such as email, phone number or bank details have changed without your knowledge.
- You notice withdrawal requests that you do not recognise.
Protect yourself
- Keep your security details safe – never share them.
- Ensure you update us with any changes to contact details as soon as you can.
- Check your account regularly so you can identify any transactions or messages that you don’t recognise.
- Use strong, unique passwords and avoid using any personal information such as names, birth dates etc.
Phishing and spoofing
Fraudsters may use emails, phone calls, text messages, or spoofed websites to trick you into sharing personal information. This information can then be used to steal your identity or take control of your account. Website spoofing occurs when criminals create fake websites that closely resemble genuine ones, with the aim of misleading you into entering sensitive details.
Red flags
- Emails or messages seemingly from a trusted source (like us, or your bank) asking you to update contact details, security details or account information via a link.
- Calls from a seemingly trusted source that ask for bank details or account security information.
- Spelling, grammar or formatting mistakes or inconsistencies on emails, letters or messages.
- An absence of your details i.e. an email starts with “Dear customer” or addresses you using your email address, not name.
Protect yourself
- Never share your log in details or full bank account details
- Do not click on links in emails or messages that were not expected.
- Take your time to read the communications properly. Are there spelling or grammar inconsistencies?
- Research the communications – have other people online reported the communication, email address or phone number as being part of a scam?
Money muling
Money muling occurs when a criminal uses a genuine person’s bank account to move or withdraw money on their behalf. Fraudsters may trick you into becoming an unwitting money mule by claiming, for example, that their own bank account is not working. They may ask you to receive money and then transfer it on, sometimes offering you a share of the funds as an incentive.
Red flags
- You’re asked to send or receive money from someone you don’t know.
- The person you are dealing with becomes more insistent or persuasive, putting pressure on you.
- You’re promised a commission or ‘cut’ on processing a transfer for someone.
Protect yourself
- Only send and receive money from somebody you know and you trust.
- Contact your bank or financial institution if you identify unrecognised deposits.
- Always research a person or company before sending or receiving money.
How to keep yourself SAFE
Fraudsters often succeed by making themselves appear legitimate and relying on people being too busy or too trusting to question what is happening. By following these four simple steps before making any financial transaction, you can help protect yourself from fraud.
S – Stop and think
Scammers often create a sense of urgency or apply pressure. Take your time, pause, and consider carefully what you are being asked to do before taking any action.
A – Ask questions
Challenge the request. A fraudster may become agitated, provide vague answers, or give explanations that do not add up. Take the time to check the email address, phone number, or company contacting you — you may find it does not exist or that others have already reported it as a scam.
F – Freeze the money
Do not send or move any money until you are confident the request is genuine and your money is safe. A legitimate bank or financial institution will never pressure you to act and will respect your decision to take time to check.
E – Educate and escalate
Learn the warning signs of fraud, and if something does not feel right, report it immediately. Use the links on this page to report your concerns, and always notify your bank and Octopus Money Direct. We will always take your concerns seriously and support you.
How we keep you safe
Verifying all of our customers
We take careful steps to verify the identity of everyone we do business with, ensuring that their details and bank accounts are genuine. While these checks may sometimes feel inconvenient, they are a vital part of keeping your money safe. By confirming your identity, we can more easily detect and prevent any fraudulent use of your details.
Data Security
To protect your personal information, we comply with data protection laws, including the UK General Data Protection Regulation (UK GDPR). This means we must keep your data secure, use it appropriately, and only share it where legally permitted.
Working with industry partners
We subscribe to industry recognised and FCA approved schemes allowing us to work with others across the industry to minimise the risk of fraud. By working together, we can give confidence to our customers and make it much more difficult for fraudsters to be successful.
Regulatory requirements
We operate under strict regulatory requirements designed to protect you and reduce the risk of fraud. We are authorised and regulated by the Financial Conduct Authority (FCA), which sets standards for how we manage investments and pensions, communicate with customers, treat customers fairly, and take all reasonable steps to safeguard your money.
Report a concern
If you suspect you have received a suspicious communication or been a victim of fraud, please give us a call or contact Action Fraud. Remember, always make sure you alert your primary bank to any suspicion of fraud to “freeze the money”.
Call us
03455 28 88 88
(outside UK +44 1256 58 80 00)
Monday to Friday 8am to 9pm
Saturday 9am to 6pm
Action Fraud
0300 123 2040
You can report any suspicions anonymously to Action Fraud. Call this number to speak directly or report online here.
Others who can help
Take Five To Stop Fraud
Straightforward, impartial advice on how to avoid scams.
Action Fraud
Report a crime or get advice on how to spot scams and protect yourself.
ScamSmart
Part of the FCA. Check potential investment or pension deals to make sure they’re for real.