Don’t be a victim: What to look out for…

I recently heard a story about a peer’s client that I thought would be a useful lesson for the individuals and families that I work with.

An IFA received a call from their client requesting encashment of all of their funds. As is standard procedure, the IFA asked what the client was intending to do with the funds but the client said she had no plans, she just wanted to encash her investments. Knowing her comfortable financial position, this immediately raised some red flags. The IFA advised that there would likely be some tax implications from this withdrawal, and requested to pull together the necessary details to calculate any costs. But the client didn’t want to wait, and was adamant that she just wanted her funds as soon as possible.

Now, as an adviser, if a client wants access to their funds, we are here to facilitate as efficiently as possible, not to hold up. However, in this instance, the adviser had major concerns about the nature and timings of this request. The concern for the risk of potential fraud spurred the adviser to make some deeper enquiries.

Lo and behold, the client was indeed a victim of fraud. She had received a call from someone claiming to be an investigator from the FCA and her bank. She was told that someone had tried to buy airline tickets with her account and had also tried to set up internet banking on her account.

During this call, the fraudsters managed to install software on her laptop, open a bank account in her name and register for internet banking on this new account.

She was instructed by them to encash her investments immediately into her new bank account to stop someone trying to access her investments. She was told not to involve her IFA as it could jeopardise their investigation.

Thankfully, though the emotional impact and sense of vulnerability can’t be undone, on this occasion the fraud was stopped in time and the client did not lose out financially.

So, what to look out for?

Do NOT believe anyone who calls saying that your accounts have been compromised in any way. ALWAYS check with your bank, preferably by visiting it in person or by calling the number on your debit or credit card.

NEVER trust anyone who tells you not to talk to anyone about the supposed ‘problem.’ If you don’t have an adviser, or don’t want to talk to your adviser for whatever reason, contact an independent authority such as:

·         Action Fraud (National Fraud & Cyber Crime Reporting Centre)

·         The Financial Conduct Authority

·         Citizens Advice Consumer Helpline

Do NOT allow anyone who has called you to install any software onto your phone, laptop or PC.

ALWAYS BE SUSPISCIOUS!