A new guide to spot potential scams over the festive period has been launched by Royal London.
The provider urged families to keep a lookout for signs their loved ones may have fallen victim to fraudsters, who are expected to be active over the Christmas period.
Piles of post hidden away, concern over missing postal deliveries and talk of high returning investment opportunities can all be signs that family members or friends may have been targeted, the provider's guide stated.
Scam activity has increased considerably in recent years with people being targeted online, via telephone, mail and in person.
Recent estimates from the Office for National Statistics (ONS) indicated there were 5.8 million incidents of fraud and computer misuse experienced by adults aged 16 and over in England and Wales for the year ending March 2016.
While people of all ages can be targeted it is more likely to happen to older people, Royal London stated.
Older generations may be less tech savvy and so may fall prey to increasingly sophisticated online scams designed to get people to hand over bank details or other personal details.
In addition, social isolation and a lack of confidence can also lead to older people being targeted, the provider stated.
And the consequences of being scammed can range well beyond the world of finance as people may start to feel insecure after the experience or deny it has happened to them altogether, leading to family disputes, the provider warned.
Helen Morrissey, personal finance specialist at Royal London, said: "Families have become increasingly geographically dispersed and may not see each other as often as they would like and so tell-tale signs might be missed.
"Making visits over the festive season can prove to be an important opportunity to make sure all is well with a loved one.
"Scams can have a terrible effect on someone’s financial and mental wellbeing so early detection is vital if they are to receive the support they need to recover from the incident and give the authorities the information they need to track the fraudster down."
There are several warning signs to look out for to determine whether someone has been scammed.
Sign 1: They receive large quantities of junk mail
Victims of mail scams can receive hundreds of letters a week from scammers.
As a result, Royal London has urged people to be wary if they see piles of junk mail in people's home or bags of such mail hidden away in cupboards.
Sign 2: They have a lot of phone calls
Once a potential victim's details have been passed around a scammer's network they are likely to get a lot of phone calls as well as a lot of mail.
According to Royal London, scammers tend to spend a lot of time gaining their victim's trust, so the telephone calls may appear to be perfectly cordial but as soon as money is mentioned people should be weary.
Sign 3: There are large quantities of goods in their home
Scammers often induce victims to pay for goods in a bid to qualify for cash prizes, Royal London warned, so unexpected goods could be an indicator something is going on.
Sign 4: They are anxious about missing postal deliveries
Following on from the above signs, the victim may become increasingly reluctant to leave their home or else worry about being home to meet the post because they are waiting for the delivery of their winner's cheque, Royal London said.
Sign 5: They talk about a new investment opportunity
Unusual assets, overseas investments, high or guaranteed returns are sure signs something could be up, according to the provider.
The victim may talk about an exciting opportunity, but the rule of thumb is that if something sounds like it is too good to be true then it usually is, Royal London cautioned.
Sign 6: They become secretive about money
Changes in people's spending habits are another worrying sign, according to the insurer.
For instance, it said, people may struggle to keep up with household bills or they may no longer be able to go out as much as they once did.
There could be many reasons for this but equally it could be an indicator they have had money taken from them by a scammer and they don't want you to know, it stated.
Sign 7: They become isolated from family and friends
Often victims are embarrassed about what happened to them or they may have become depressed and anxious as a result of their experience, Royal London stated.
They could also have been intimidated by a scammer and be too frightened to come forward, so isolation can be another warning sign, the provider added.
Case study
In its guide the insurer also presented a case study involving an elderly lady, who fell victim to a series of postal scams.
Her son noticed that she was receiving many letters every week.
He had power of attorney over his mother's affairs as she suffered from mixed dementia.
He had taken on board management of his mother's bank statements as he had concerns about her potential vulnerability and how she was spending her money.
The man told Royal London: "I noticed there were regular small amounts, about £50 per week going out of her bank account, in addition to her larger monthly amount for food and bits.
"I thought it was strange because when she goes to the shops she tends to buy the same things every week so we wondered what this money was being used for."
At a family event his sister then saw her mother wrapping money in silver foil and placing it carefully into an envelope.
The family found the lady was the victim of multiple postal scams and was receiving up to 50 letters a month from about 10 organisations.
These letters typically said she was a listed beneficiary and entitled to claim a significant money prize but could only do so by urgently responding to the letter, filling in the counterfoil in the document and sending cash or supplying credit card details.
They all originated internationally, with the majority issued from post box addresses in Canada and the US with some from France and Eastern Europe, Royal London said.
The lady had been sending off money for at least 18 months and put the amount lost at almost £4,000, the provider said.
While her son was able to speak to Royal Mail to get her post redirected and put safeguards in place with her bank, he told Royal London there was not enough support in place to help vulnerable people who are at risk of being scammed.
He said: “I just don’t think it is fair how we treat vulnerable people in this position. These mailings amount to organised crime and the issue needs to be brought into the mainstream and escalated.
"It may amount to small individual amounts of money per week but in the grand scheme of things it still means a lot to those people and adds up quickly to many thousands of pounds.
"It is sickening to see the most vulnerable people in our society being preyed upon in this way."
Royal London's guide to scams is available here.
carmen.reichman@ft.com
