As much as we’d love to say otherwise, not everybody wants to help you get a great deal on your mortgage.
There are some groups and individuals who will use your trusting nature against you and steal your money or identity under the pretence of being a real mortgage or home buying company.
At London Money, we want you to be able to make financial decisions with confidence. We believe that the best way to do that is to arm you with the knowledge and skills to identify a financial scam on sight.
So exactly how can you tell if an email, phone call or letter you receive is genuine? And what other warning signs can you look for?
1. You have not given your information to them willingly
If you have shown no prior interest in doing business with a company, and they contact you via a cold call, email or letter; be suspicious.
Legitimate companies who approach you will have prior consent to use your contact information, either from an enquiry form you have filled in or a mailing list you have joined.
2. Suspicious contact information
Some scammers try to imitate well-known and recognisable companies to trick you into giving them personal information or money. The easiest way to tell if the communication is really coming from the organisation it claims to be is to check the return communication information.
This includes:
- The sender’s email address
- The phone number calling you
- The return address on an envelope
Usually, a quick Google search will reveal whether this is genuine contact information.
3. Urgency
Fraudulent communication often includes the need for a quick response.
If you feel that a company is putting pressure on you to act without having the chance to properly consider the offer, it is probably not genuine.
The best solution is to take a step back, consider all aspects of the communication and then carry out some research. Search the company name and contact information online and read any reviews or discussions about the offer. Be careful, though, as some scammers go to great lengths to plant positive reviews to make them appear genuine.
If the communication appears to come from a well-known brand, it is perfectly acceptable to contact the company’s customer service. They will be more than happy to confirm whether the communication is from them or not.
4. Big offers, small requests
Often, scam offers will not pass the ‘too good to be true’ test. If you are being offered a mortgage with minimal interest rates, or a guaranteed acceptance in return for a small amount of money, it is unlikely to be a genuine offer.
We all love a bargain, but it’s this temptation that scammers rely on to lead you into a trap. The important thing to remember is that, no matter how good the offer sounds, it will never be worth it. You are likely to lose money, never receive the promised goods, or worse.
5. Requests for personal details
Emails and phone calls are the most-used method for this. Emails may appear to be from a real company and will prompt you to enter your login details for their website to continue (often stating that your account has been compromised, or offering rewards for logging in).
It is always advisable to navigate directly to the company’s website using the known address, rather than clicking through using links in emails. These may be malicious and usually take you to a page which imitates the recognisable company, but is actually a way to collect the account details you enter.
During phone calls, the caller may say that they are calling from your bank, or mortgage brokers and ask you to confirm your account details to continue the phone call. This is very suspicious. If the bank initiates the call, they should already have your details.
Often, legitimate companies will request that you contact them on a phone number which can be verified as authentic and will never request account details when they contact you. If in doubt, hang up and call a verified phone number for your bank or mortgage provider. If they were genuine, they will not be offended and if not, you have avoided and reported another scam.
What to do if you’re unsure
Put simply; err on the side of caution, and use your common sense. Legitimate companies are happy to make your experience as secure and comfortable as possible. They will understand if you ask to terminate a call and call back on a number which you feel confident about. Likewise, established brands are always interested in potential scams and will often have a dedicated email address which suspicious messages can be forwarded on to.
If a company seems suspicious, end all communication with them, blocking their phone number or email address. You can request to be taken off marketing lists, but, when it comes to scammers, there’s no guarantee that they will follow the law on that.
When dealing with financial service providers, always check the Financial Services Register, which lists details of all authorised personnel and firms. The site also lists scam firms, with prominent warnings.
There are several organisations offering advice and solutions when it comes to dealing with scammers and avoiding fraudulent offers, including;
- Action Aid
- The National Crime Agency
- Citizens Advice
For more information about mortgage fraud and how to avoid it, get in touch using the phone number at the top of the page.