Get our money-saving tips and top offers direct to your inbox with the Mirror Money newsletter Sign up Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

Every year in the UK, an estimated £3.5 billion is lost through fraud. Here’s a round-up of some of the most common scams and how to dodge them…

Holiday Fraud

(Image: Rex)

At home: Watch out for people selling too-good-to-be-true holidays online or over the phone. Although it might be tempting to snap up a bargain last-minute package holiday, it’s important to do your research about the company you’re buying from.

Agencies such as ABTA and ATOL protect consumers, so ensure the company you’re booking with is registered with one of them. You can verify a company’s status with the Civil Aviation Authority.

It’s always a good idea to check out reviews of them online too, and remember to only ever pay for holidays on a credit card to make sure you’re covered against fraud.

Abroad: Bogus holiday clubs cost the British public £1.1 billion last year. Conmen target holiday makers by handing out scratch cards with memberships to ‘exclusive’ clubs, offering free stays at high-end resorts once a fee is paid. But the truth is, the holidays will be poor quality – if they exist at all.

Mobile phones

If you receive a text message saying you’ve won a prize, or a call from an 070 number, don’t reply or call back – it could cost you several pounds a minute and it’s unlikely there will be a prize.

Smart phones are susceptible to the same bugs as computers, so install the latest anti-virus software, and only download apps from reputable stores like Google Play or Apple. Finally, never leave bluetooth on because it makes it easy for criminals to hack into your phone and steal personal details.

Social media

(Image: AFP/Getty Images)

Don’t put too much personal information on your online profiles, because criminals can use your details to compromise your bank account. If you use dating websites, be cautious about giving away too much about yourself – some people use the sites to find people to con. They gain a victim’s affections online, before persuading them

to lend them money.

Investment scams

(Image: Getty)

These kinds of scammers have all sorts of ways to persuade you to trust them, from hiring office space in iconic London skyscrapers to playing call-centre background noise when they ring you.

It might be tempting to put your money into investments that guarantee high returns for low risks, but it’s probably not all it promises to be. Tell-tale signs that an investment might be a scam include the caller telling you the deal is time sensitive or only available to you, calling repeatedly, and downplaying the risks to your money.

Never set up an investment that starts with a cold call or email, and check Fca.org.uk for a list of unauthorised firms.

Work at Home Schemes

(Image: Getty Images)

This is one of the most common types of scam and costs the UK £70 million a year. Companies advertise high wages for work, such as envelope stuffing, craft assembly, or email processing, and ask you to hand over money for a starter kit, or to set up a website.

Be very wary of signing up to these schemes, and make sure you research the company thoroughly. If you see an advert like this, report it to the publication or website where it was featured.

Lottery

(Image: Getty)

If you receive a letter claiming you’ve won a foreign lottery, chuck it straight in the bin. Last year, 140,000 people fell for this scam and lost a total of £260 million. The likelihood is you’ll be asked to pay an administration fee in order to claim a non-existent prize.

Never call an 09 number to discuss your ‘winnings’ either: these are charged at over £1 per minute.

If you believe you’ve been the victim of fraud or an online scam, visit Actionfraud.police.uk . Advice from cityoflondon.police.uk .