Scams that target newcomers — and how to react

Scammers target newcomers to the UK because they often lack familiarity with local systems, financial regulations, and emergency procedures. Three major types of fraud pose particular risks: tax authority impersonation, bank transfer fraud, and fake rental schemes. Understanding these patterns and knowing how to react immediately—including when and how to call your bank—could save you thousands of pounds and protect your identity.

HMRC and Home Office Impersonation Scams

Her Majesty's Revenue and Customs (HMRC) is the UK's tax authority, and Home Office officials conduct immigration enforcement. Scammers frequently impersonate both because newcomers may expect contact from these organisations about tax or visa matters. The fraudsters' goal is typically to harvest your personal details, push you into hurried payments, or trick you into downloading malware.

How These Scams Work

You receive a phone call, text, or email claiming to be from HMRC or the Home Office. The message is crafted to sound urgent and threatens legal consequences—arrest, fines, visa cancellation—unless you pay immediately. The caller may use language about unpaid taxes, immigration penalties, or compliance breaches. They demand payment by highly unusual methods: prepaid gift cards (iTunes, Google Play, Amazon cards), cryptocurrency, or vouchers. Legitimate government agencies simply do not ask for payment via these channels.

Recently, scammers have become more sophisticated, using deepfake technology to impersonate officials on video calls. They may also send you to a fake government website that looks almost identical to the genuine gov.uk domain—the address bar is where the fraud often hides. Other red flags include requests for your PIN, bank password, or National Insurance number over the phone, or links via text or email asking you to log in to claim a refund that doesn't exist.

What Legitimate HMRC and Home Office Contact Looks Like

• Official correspondence arrives by post first, not by unsolicited phone call or email
• They will reference your Unique Taxpayer Reference (UTR) or National Insurance number—if they claim to have it but ask you to confirm it, that's suspicious
• They never demand immediate payment by phone
• They will never threaten arrest or police action by voicemail or automated call
• HMRC uses only official gov.uk email addresses and will never send links via text or email asking you to log in
• Contact from the Home Office about visas or immigration status comes through official notification channels, not sudden phone calls

Authorised Push Payment (APP) Fraud and Bank Scams

Authorised Push Payment (APP) fraud is when a criminal tricks you into sending money from your bank account to an account you think belongs to a legitimate payee—a landlord, employer, lawyer, or friend—but which the fraudster actually controls. Unlike a hack where your account is compromised without your permission, APP fraud exploits your own authorisation. The good news: new UK rules now require your bank to reimburse you in most cases.

Common APP Fraud Scenarios

• A fake rental listing looks perfect: low price, good location, available immediately. The 'landlord' asks for a deposit and first month's rent paid via bank transfer. You send the money and never hear from them again.
• Someone claiming to be your bank, solicitor, or accountant calls or emails, saying urgent action is needed. They ask you to move money to a 'safe account' for security reasons, or to transfer funds to verify your identity.
• An investment platform promises high returns and guides you through a bank transfer to 'open your account.' Once the money is sent, the platform vanishes.
• A colleague or friend's email account is compromised. A message asks you to urgently transfer money for a business expense or personal emergency. The email address looks correct, but it's been hacked.

Your Right to Reimbursement

From 7 October 2024, UK banks and payment service providers must reimburse customers who fall victim to APP fraud, provided certain conditions are met. The mandatory scheme covers payments made through Faster Payments (the standard bank transfer system) and CHAPS. You must report the fraud to your bank within 13 months of the fraudulent payment. Reimbursement happens within 5 working days for eligible claims.

The maximum amount you can claim is £85,000 per incident. Reimbursement is not automatic in all cases—for example, if your bank can prove you acted with gross negligence or ignored obvious warning signs, they may not reimburse you. They may also investigate whether you contributed to the fraud. That said, the default position is now reimbursement unless the bank has strong evidence to the contrary.

Investment and Lending Scams

Newcomers may be targeted with offers of investment opportunities, loans, or wealth-building schemes. Often these come via social media, messaging apps, or unsolicited emails. The scammer poses as a broker, advisor, or fund manager and promises unusually high returns or quick access to credit. Many of these frauds involve APP fraud—you transfer money to open an account that never existed.

How to Check if an Investment Firm Is Legitimate

In the UK, nearly all financial service firms must be authorised or registered by the Financial Conduct Authority (FCA). Before sending any money to an investment platform, financial advisor, or lending firm, verify their status on the official FCA register. Visit register.fca.org.uk or use the FCA Firm Checker tool. Search for the firm's name and check that it holds the correct permissions for the service it's offering.

If a firm is not on the register—or if it's listed on the FCA Warning List as unauthorised—do not use it. Many clone firms deliberately choose names similar to legitimate firms or claim to be registered when they are not. If you cannot find the firm on the official register, assume it is fraudulent and report it immediately.

Rental Scams: Protecting Yourself When Searching for a Home

Rental scams target newcomers especially hard because you are often unfamiliar with property prices, local estate agents, and tenancy law. A scammer may post a fake listing on legitimate platforms, take over a genuine listing, or create a professional-looking website. The goal is always the same: collect a deposit, first month's rent, or 'holding deposit' before you ever visit the property—which either doesn't exist or is not theirs to rent.

Red Flags in a Rental Listing

• The price is far below market rate for the area. Scammers advertise 'too-good-to-be-true' deals to create urgency.
• You are pressured to pay a deposit or sign a contract before viewing the property in person.
• The photos are of unusually high quality or look suspiciously perfect. Reverse-image search them (right-click > search image on Google) to see if they're stolen from another listing.
• The listing contains spelling and grammatical errors, especially if the agent claims to be a professional company.
• The agent asks you to pay via wire transfer, gift cards, money transfer apps (Wise, Western Union, Money Gram), or cryptocurrency. Legitimate landlords accept bank transfers or rent collection through your tenancy deposit scheme.
• The address does not exist or cannot be verified online. Check the postcode on Google Maps.
• You are asked to provide personal details (National Insurance number, full bank details, passport) before even touring the property.
• The agent cannot meet you to view the property, citing vague reasons like being abroad or unavailable.

How to Protect Yourself

• View the property in person before you commit to anything. Meet the landlord or agent face-to-face.
• Check that the person showing you the property can prove they are authorised to rent it. Ask for their ID and verify their association with a known lettings agency or the property company.
• Only pay rent and deposits through your bank (via bank transfer) or into a government-backed tenancy deposit scheme. In England, Wales, and Northern Ireland, deposits must be held in a registered tenancy deposit scheme.
• Verify the rental address online using Google Maps and local council tax records if possible.
• Never wire money internationally or use peer-to-peer payment apps for deposits. These are nearly impossible to recover if fraud occurs.
• Request a written tenancy agreement before paying anything. Legitimate landlords provide this.
• Ask for references from previous tenants or check reviews of the letting agency.
• If anything feels rushed or unclear, keep searching. Legitimate rentals are not scarce enough to warrant panic decisions.

What to Do If You've Been Scammed

Immediate Steps

• Stop all contact with the scammer immediately.
• If you have already shared bank details, passwords, or payment card information, call your bank right away using the number on the back of your card. Do not use a number provided by the scammer.
• For suspected bank fraud or a fraudulent call, call 159. This is a free service that connects you directly to your bank's fraud team, and it works with all major UK banks. They can freeze your account, stop pending payments, and start an investigation.
• Change your online banking passwords if you have given them out.
• If you have been tricked into installing software or clicking a suspicious link, consider running antivirus software or seeking help from a tech support service.

Reporting the Scam

After you have contacted your bank, report the fraud to the national reporting service. In England, Wales, and Northern Ireland, this is Report Fraud (formerly Action Fraud). You can report online at reportfraud.police.uk or call 0300 123 2040 (Monday to Friday, 8am to 8pm). You will receive a crime reference number; keep this for your bank and any future insurance claims.

If you received a suspicious text message, forward it free of charge to 7726. This helps your mobile network provider identify and block the scammer's number. For suspicious emails, forward them to report@phishing.gov.uk; they will be analysed by the National Cyber Security Centre.

If you were targeted by an unauthorised investment firm, also report it to the FCA using their Warning List form or by calling their consumer helpline. This helps prevent others from falling victim to the same scam.

What Happens Next

Your bank will investigate the fraud claim and, if you meet the eligibility criteria under APP fraud rules, should reimburse you within 5 working days. Keep all evidence: screenshots of messages, copies of emails, transaction records, and the crime reference number from your report. Your bank may ask for supporting documents to process your claim.

Even if your individual case is not investigated by police, your report contributes to intelligence that helps law enforcement identify patterns and disrupt criminal operations. Do not be discouraged from reporting because you feel embarrassed or believe nothing will happen—reporting helps protect future victims.

Key Takeaways

• Government agencies (HMRC, Home Office, NHS) never demand payment by gift card, cryptocurrency, or unusual methods.
• Banks must reimburse APP fraud victims (up to £85,000) unless you acted with gross negligence.
• Always verify investment firms and lenders on the official FCA register before sending money.
• For rental properties, view in person, avoid wire transfers and payment apps, and verify tenancy deposit protection.
• If you suspect fraud, call 159 immediately for bank fraud, or Report Fraud on reportfraud.police.uk for other scams.
• Never click links in unsolicited messages, and always call organisations back using numbers from their official website, not from the suspicious message.