Financial Scams: Verification Before Transfer

Urgency is a warning sign

Fraud often works by reducing the time available to think. A message may claim that an account will be closed, money will be lost, a limited investment opportunity will disappear, or a relative needs help immediately. The safest response is to stop using the contact details in the message and verify the request through a trusted channel you find independently.

Do not share passwords, full authentication credentials or one-time passcodes with someone who contacts you unexpectedly. Legitimate organisations may verify identity, but security codes are designed to authorise access or transactions and should be treated as confidential.

Investment fraud

Be sceptical of guaranteed high returns, claims of little or no risk, secret strategies, pressure to recruit others, fabricated celebrity endorsements and screenshots that cannot be independently verified. Before transferring money, identify the legal entity, understand the product, verify applicable regulatory status, and search for warnings or complaints from credible authorities.

A professional-looking website does not prove legitimacy. Domains can be created quickly, reviews can be fabricated, and scammers can copy the branding of real firms.

Payment diversion and impersonation

If bank details on an invoice change, verify the new details using a trusted phone number or contact method already known to you. Email accounts can be compromised and conversations can be copied convincingly. Similar caution applies when someone claims to be a bank, tax authority, police officer or family member.

Recovery scams target people who have already lost money. A new caller may claim to be able to recover the funds for an upfront fee or tax payment. Treat that approach as a fresh transaction requiring independent verification.

Protect accounts and records

Use unique passwords, enable multi-factor authentication where available, keep devices updated, and monitor account activity. If fraud is suspected, contact the relevant financial provider through its official channel promptly and preserve messages, transaction records and account details that may help an investigation.