Fraud is not new – it has been with us for thousands of years. From 300 BC when a Greek sea merchant, Hegestratos, was caught trying to sink his own ship and pocket the insurance payout, to Charles Ponzi’s schemes of the 1920s, history bears witness to the fact that there will always be someone looking to get rich quick by way of dirty tricks!     

It is, however, a tricky subject: fraud can manifest itself in multiple different ways and the types of fraud tend to vary with the economic, social and technological winds of change. 

Despite huge amounts of statutory protection for consumers and a host of regulations, consumers today have never been more vulnerable to being ripped off.

Classic examples of fraud include: 

• the sale of non-existent goods or services (eg. you buy a camera online that never turns up)
• the sale of misdescribed goods or services (eg. you buy an appliance that doesn’t do what it is supposed to do)
• credit card fraud (eg. you unearth unknown entries in your monthly credit card statement)
• identity theft (eg. someone pretending to be you takes loans out in your name)
• fraudulent insolvency (eg. you make a big advance payment to your builder who then goes bankrupt) 

In the digital age, consumers are more vulnerable than ever to scams of different sorts. From fake reviews and phishing emails, to online shopping and social media scams, the technologies we use for research, or to purchase goods and services make us extremely vulnerable to manipulation. 

As well as professional hackers and gangs of cyber criminals who target large organisations, AI tools have made it easier than ever before for anyone to become a scammer by creating convincing digital content that steals personal or financial details. 

Given the chameleonic nature of fraud what are some general tips for avoiding it?

• My first and favourite tip is that if something looks too good to be true, it probably is. 

Whether it’s a hugely underpriced car or an investment that pays out an amazing return, an unbelievably good deal should immediately raise a huge red flag!  

• Second, if you are approached out of the blue with an offer to buy or participate in something, be wary.  

A random email from an unknown email address, a cold call on your landline or an unwarranted text asking you to click on a link are classic hallmarks of something dodgy.

• You should also look out for glowing credentials. 

If you are engaged with a company that you have never heard of but which purports to be connected to something wonderful, it may not be. 

Fraudsters love to employ words like “Royal” “Grosvenor” or “Mayfair” to big themselves up and create an illusion of something reputable.

• Make sure that you carry out due diligence.  

In other words, dig deeper.  Ask questions, probe, ask for references, ask for specifications or other details to flush out the truth.  This is sound commercial practice.

In other words, pay attention and do not be just another tick-box consumer.

• Finally, be wary of oddities, however minor. 

People who carry out scams can be very sloppy.  If something is littered with spelling mistakes or poor grammar that may be a tell-tale sign.

The above are only a few general rules.  In a future article, I will talk more about options you may have if you find yourself on the wrong end of a scam.