‘Advance fee’ scam warning

The number of advance fee scams has surged over the last 12 months, with fake ads for jobs, loans and rental properties among the most common tactics.

An advance fee scam is when a victim is asked to pay an upfront fee for goods or services that are fake and don’t materialise.

Lloyds Bank is issuing the warning as findings show that fraudsters are increasingly turning to this type of scam, with the average amount lost by victims standing at £711.

Although this is a lower figure compared to the previous 12 months (£1,194), it’s believed that scammers are looking at pursuing a higher volume of lower value scams.

According to the data, those between 25 and 34-years-old are most likely to fall victim, followed by 35 to 44-year-olds – these two age groups make up 49% of all victims.

Liz Ziegler, Fraud Prevention Director, Lloyds Bank, said, “Fraudsters will ruthlessly adapt to any changes in consumer behaviour and, with the increased cost of living putting more pressure on people’s finances, the recent surge in advance fee scams targeting those on low incomes or with a poor credit history is alarming.

“The important thing to remember is that a genuine lender will always conduct thorough credit checks prior to agreeing a loan and won’t ask for an upfront payment before releasing the funds.

“If you’re concerned in any way about your finances there are lots of reputable organisations that can help, and it always makes sense to speak to your bank first.

“The abundance of these fake online ads reinforces the importance of the government’s Online Safety Bill to ensure social media sites and search engines stamp out fraudsters operating on their platforms.”

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