Consumer advice information

Cost of living scams

In this guide, the words 'must' or 'must not' are used where businesses are legally required to do (or not do) something. The word 'should' is used where there is established legal guidance or best practice that is likely to help businesses avoid breaking the law.

This guidance is for England, Scotland and Wales

Many people become the victims of criminals who are intent on conning them out of their cash.

Criminals use clever tactics and will try to appear genuine to gain your trust, until they have got your money or personal details.

The cost of living crisis has given criminals more opportunities to use increasingly sophisticated methods to scam people. Rising uncertainty, financial pressures, and social isolation have made individuals more vulnerable to fraud; it is so important that everyone is vigilant and that people in communities help to prevent scams and look out for people they are close to.

It's important to remember that all scams are fraud and therefore a crime.

FAKE GOVERNMENT EMAILS RELATING TO COST OF LIVING AND ENERGY

You may respond to what you believe is a Government email, which is linked to a genuine Government service, only to find out it is a scam.

The cost of living crisis is being used as a reason to target people with unsolicited emails from fake Government departments. The emails will claim that you are entitled to a rebate, refund or discount on Government services.

In 2022, the Government provided every household in the country with a £400 energy grant, and also offered Council Tax rebates. However, these schemes are no longer running. There may be Government schemes that are set up to help people in the future, however, question and consider any emails you receive claiming to offer Government assistance; they may be scams.

These official-looking scam emails come in many different forms, such as:

fake cost of living related grants
fake cost of living relief funds
fake council tax reductions, rebates or refunds
fake tax rebates from HMRC
fake offers of assistance to help with universal credit applications

The hook is the promise of financial gain. You may be asked to ring a mobile number or respond by email. All of these scam emails will either:

contain a link that steals personal and financial information
encourage you to fill in a form and hand over your personal information
contain a link that leads to a fake Government website, which harvests personal and financial information
take a payment as an 'advance' for their fake services

FAKE LOANS

Criminals will offer guaranteed loans in adverts on social media or from phone calls out of the blue. Criminals will typically approve applications regardless of credit history.

Consumers are then told (before they receive the loan) that they must pay an upfront fee for the loan, usually for insurance or some other made-up reason. Once this fee is paid, the consumer does not hear from the criminal company again and the loan is never received.

BANK CARD REFUND SCAM

Criminals are using social media to offer bank refunds that don't exist. These social media posts may include a screenshot that is shared next to a message that reads:

"NEED PEOPLE WHO BANK WITH XXXXXXX [bank name].
Refunds on debit card purchases for last 18 months. £500-£20k. Each customers refund will be different."

This scam tries to get you to hand over your bank details, which the criminal will use to set up their device on your account, giving them access to your bank account and all your personal information.

FAKE FOOD GIVEAWAYS

There have been an increase in fake ads on Facebook offering free boxes of food worth £X.

The fake ad states something like:

"We have thousands of food products due to expire, normally it would be binned. However, we thought we'd change our ways and start doing things a little better as we know times are tough at the moment. Instead of throwing it all away we will be packing it into boxes and sending everyone who shares and comments in the next 24 hours, each box containing some food worth up to £X (sent next day)."

This is a scam. The criminals often impersonate popular brands with tempting giveaways. The scam usually sends you to a website to share your personal or financial details.

TV LICENSE SUBSCRIPTION RELATED SCAMS

Fake emails and texts claim to be from TV licensing, telling you that you are eligible for six months for free because of the cost of living. You are asked to click on a link that takes you to a fake website, which steals your personal and financial information.

Fake emails ask you to update your TV subscription service payment details. If you click on the link this will then be used to steal your credit card information. There has also been an increase in fake offers for free trials of TV subscription services. Again, they are trying to steal your money or personal details.

FAKE INVESTMENT SCAMS

Criminals often use fake endorsements to lure people in. Celebrities are often impersonated in ads on social media; this is done to make you click on links with fake financial advice.

The ad often leads to a fake news article that claims to offer a cryptocurrency investment schemes and includes collecting all of a consumer's information as part of the scam.

Fake investment opportunities are advertised on social media sites to encourage you to take advantage of the financial downturn. Crypto currency (digital or virtual money) platforms are using emails and adverts on social media to encourage people to put money into fake companies using fake websites.

JOB RETENTION SCAMS AND SELF-EMPLOYMENT INCOME SUPPORT SCHEME SCAMS

Criminals steal business bank details by emailing businesses and claiming to be from HMRC. They ask for business bank account details and claim that this is to guarantee payment of the salary subsidy. Although there are many schemes being offered to help people in difficulties, never assume anything is genuine. Check the web address carefully (often it's very close or realistic), search online and, if in doubt, call HMRC and ask if it's real.

HOUSEHOLD GUARANTEE OR INSURANCE SCAMS

Criminals sell fake insurance or extended guarantee or warranty cover for household goods by enticing you with premiums that are well below other providers. They claim that the insurance is provided by a legitimate company. These often turn out to be worthless fake policies.

SHOPPING SCAMS

There have been reports of a huge increase in shopping scams; goods being ordered and never received or goods being misdescribed or fake. These sorts of scams aren't always recognised as fraud by the general public so aren't always reported.

HOW TO AVOID BECOMING A VICTIM OF A SCAM

stop, think, and be sceptical. Did the communication (the call, letter or email) come out of the blue?
do not give personal or financial information to someone you do not know, however plausible they might sound. This applies even if they claim to represent a business or organisation you have heard of, or where an approach is personalised
genuine businesses or organisations will never telephone you and ask for personal or financial information
think about how much money you could lose responding to a potential scam. It's a risk not worth taking
never make cash payments by money transfer
use a good spam filter to block out unwanted unsolicited emails
if you receive a letter, an email or a phone call that you suspect is bogus, speak to family or friends, Action Fraud or the Citizens Advice consumer service and seek advice
be sceptical about advertisements, emails and social media posts that promise high earnings for what appears to be very basic work
register with the Mail Preference Service. This is a free service where you can register your preference not to receive unsolicited direct mail. It will not prevent you receiving unsolicited mail from abroad, unaddressed mail, or mail sent to 'The Occupier'
Trading Standards and Royal Mail are working jointly to tackle scam mail in the postal system. If you or someone you know is receiving scam mail, you can report it to Royal Mail by completing a 'scam mail report' form (word document on the Royal Mail website) and sending it to Freepost SCAM MAIL, along with the scam mail itself and the original envelope it was sent in. You can also report it by emailing scam.mail@royalmail.com or by telephoning 0800 011 3466 (message service only). For more information on scam mail, visit the Royal Mail website
if you would like to opt out of receiving unaddressed door-to-door mail items, complete the opt-out form on the Royal Mail website and send it to Freepost ROYAL MAIL CUSTOMER SERVICES. For more information on opting out, visit the Royal Mail website
register with the Telephone Preference Service. This is a free service where you can register your preference not to receive unsolicited sales and marketing calls, although it may not stop overseas calls. You can register on 0345 070 0707 or online
ask your telecoms provider to set up call screening on your telephone so that you know who is calling your number before you decide to answer it. If the number is withheld it will be displayed as 'number withheld'
check if your telecoms provider has free call-filtering and anonymous call rejection services to help protect against nuisance calls. Or alternatively you can buy a call blocker, which is a device installed between your phone and your phone socket designed to block scams and nuisance calls

I GAVE OUT MY CREDIT / DEBIT CARD DETAILS: CAN I GET MY MONEY BACK?

If you have given out your bank, building society, credit card or debit card details, contact your bank, building society or finance provider immediately and seek their advice. If you have been the victim of a fraud, they may be able to help.

If you paid for what turned out to be bogus goods or services by credit card, and if the cost was more than £100 and less than £30,000, you are protected by the Consumer Credit Act 1974. Section 75 of the Act makes the card provider as responsible as the trader for a breach of contract or a misrepresentation. You are entitled to take action against the trader, the card provider or both. This does not apply to charge cards or debit cards. In the case of fraud, you may have great difficulty recovering your money from the criminals but you may be able to recover it from the finance provider. If you are dissatisfied with the credit card provider's response and the Consumer Credit Act 1974 applies, then complain to the Financial Ombudsman Service.

If you used a debit card to buy what turned out to be bogus goods or services, or if you used a credit card and the price of the goods or services was less than £100 (your rights under the Consumer Credit Act 1974 would not apply), you may be able to take advantage of the chargeback scheme. Chargeback is the term used by card providers for reclaiming a card payment from the trader's bank. If you can provide evidence of a breach of contract or a fraud (for example, goods were not delivered, the service was not carried out or you were misled), you can ask your card provider to attempt to recover the payment. Check with your card provider as to how the scheme rules apply to your card, whether internet transactions are covered and what the time limit is for making a claim.

If you use a debit card or a credit card to service an online payment system to buy goods or services, it is unlikely that you will be able to use either the Consumer Credit Act 1974 or the chargeback scheme to claim from your card provider in the event of a dispute. However, the online payment system may have its own dispute resolution process that may assist you in resolving your problem.

If you have agreed to a continuous payment authority (where regular payments are taken from your credit or debit card), you have rights under the Payment Services Regulations 2017. Even if you have not asked the criminal for the payment to be cancelled, they refuse to do so or you cannot contact them, your bank or card provider must cancel the payment authority. If your bank or card provider does not act on your instruction to cancel, you are entitled to have any subsequent payments reimbursed, but you must report it as soon as possible or in any event within 13 months of the date the unauthorised payment was made.

I'VE BEEN THE VICTIM OF FRAUD: WHAT CAN I DO?

If you receive a scam email, letter or telephone call, you can report it to Action Fraud. You can also report it to the Citizens Advice consumer service for referral to Trading Standards.

If you are conned into phoning a premium-rate number, you can report it to the Phone-paid Services Authority (PSA), which regulates premium-rate services in the UK.

The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) include provisions that give you rights of redress if a trader has engaged in an unfair commercial practice involving a misleading action or an aggressive practice: the right to unwind the contract, the right to a discount and the right to damages. See 'Misleading and aggressive practices: rights of redress' for more information. Be aware that it may be difficult to take legal action against a fraudster.

Please note that the CPRs' provisions on rights of redress will be replaced by similar ones in the Digital Markets, Competition and Consumers Act 2024 (DMCCA). However, the DMCCA's rights of redress provisions are not yet in force.

A trader may have committed a criminal offence if they engage in an unfair commercial practice. If you have a complaint, you can report it to the Citizens Advice consumer service for referral to Trading Standards.

If you think your details have been shared unlawfully, you should report it to the Information Commissioner's Office for further investigation or call 0303 123 1113. If you have been the victim of a fraud, you can report it to Action Fraud.

If you think your identity has been stolen, please follow the guidance given on the Action Fraud website.

HOW DO I PREVENT SOMEONE I KNOW FROM BEING SCAMMED?

There are signs that will alert you to the possibility that the person may be the victim of a scam:

do they tell you they receive a lot of mail or have you seen a lot of mail in their home?
do they receive unexplained and frequent phone calls?
are they secretive about the nature of the mail, the phone calls or the products in their home?

Often people refuse to accept that they are being scammed and are a victim of fraud, or are too ashamed to admit it. Try to reassure the person that criminals are clever and fraud is commonplace, but that there are simple steps they can take to protect themselves. Share with them and discuss the advice in the 'How to avoid becoming a victim of a scam' section above. Explain that they can have their mail redirected to a friend or relative if they are worried.

If you are having difficulty getting the person to understand and appreciate that they are the victim of fraud, seek help from the organisations listed in the 'I've been the victim of fraud: what can I do?' section above.

You may also want to consider doing the online training on the Friends Against Scams website. This will give you more information on how to help someone you know who is, or could be, being scammed.

OTHER TYPES OF SCAM

See the guides 'Conned by competitions?', 'Conned by phone fraud?' and 'Conned by dating, health, psychic or work scams?' for further information.

IN THIS UPDATE

Changes made to reflect the coming into force of the Digital Markets, Competition and Consumers Act 2024 (Part 4, Chapter 1: 'Protection from unfair trading').

Last reviewed / updated: June 2025

Key legislation

Please note

This information is intended for guidance; only the courts can give an authoritative interpretation of the law.

The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to legislation can be found on each link's 'More Resources' tab.

For further information in England and Wales contact the Citizens Advice consumer service on 0808 2231133. In Scotland contact Advice Direct Scotland on 0808 164 6000. Both provide free, confidential and impartial advice on consumer issues.

The county council is not responsible for this information.