Trick One: Introductory Discounts

Trick Two: Subscription Models 

Trick Three: Free Gifts

Trick Four: More Items, More Discount

Trick Five: Scarcity Illusion

Save With Delivery Passes

Look for Comparison Websites

Get Group Discounts

Search for Discount Codes

Use a Cashback Site

Online Retailer Trick: Introductory Discounts

How many times have you visited a website for the first time, to get pestered by a pop-up advocating a 10% discount on your first purchase? And how many times have you signed up to the newsletter to get your discount?

Not only are you likely to find bigger discount codes for the same site online, the discount also won’t apply to things like sale items or multibuy offers. So, you’ll add things to your cart and not necessarily realise they aren’t being discounted when you check out.

Signing up to newsletters can be a good way to spot upcoming deals but only from retailers that you know you like and will shop regularly from for your essentials or as somewhere you like to buy gifts from. Otherwise, you’ll be on the receiving end of lots of emails promoting things you don’t actually want or need – but their limited time discounts for newsletter subscribers can look so tempting…

Only sign up to receive a newsletter once you have used an online retailer more than once and have been happy with their service. Otherwise, it’s easy to get sucked in to deals for things you weren’t planning to buy in the first place!

Trick Two: Membership Subscription Models

This is a particularly big one for womenswear, for some reason. Fabletics is a great example – their introductory offer is two pairs of leggings for £24, instead of around £70 each. Sounds like a bargain, right? Except, you’re also signing on to pay for a monthly ‘membership’ that gives you access to unique prices. Memberships for websites like this can easily be £40 a month – and they might say that includes a ‘free’ item of clothing each month or ‘huge discounts’ on their usual prices. However, unless you’re in constant need of athletic gear or want to buy a bra every month (Shapermint, we’re looking at you), it’s not worth the price.

Play the game by signing up and getting your two pairs for £24 (or whatever the subscription introductory offer is for the online retailer you’re looking at) and then CANCEL YOUR MEMBERSHIP as soon as your order arrives. Always check the fine print too – make sure you’re not getting yourself into an annual membership contract before you place an order.

Trick Three: Free Gifts and Free Delivery

This is as common a trick in real life as it is for online retailers. You’re encouraged to spend over a certain amount in one shop to qualify for a ‘free’ gift. Usually, this does not work out as value for money!

The only times these offers work is when you were planning to spend that amount anyway, and the ‘gift’ is something you would use anyway (or can use for a present for someone else). A good example of where this can work is with Boots around Christmas time. They will run the ‘Buy Two, Get One Free’ model on many of their gift ranges. If you’re buying Christmas presents anyway, this can be a way to save money.

But if you don’t actually want that makeup set ‘Worth £70’ or similar, think twice about spending more money just to receive it. These free gift values are also usually based on the full size version of cosmetics (as an example) rather than the sample size, which is only evident in the fine print.

Free delivery tricks

Free delivery is also a culprit in this online retailer trick. How many times have you decided to add one more item to your shopping basket just to qualify for free delivery – but the item cost more than the delivery fee? This is, for some reason, an easy mental trick to play on ourselves, because we see delivery as a service and the extra item as a physical thing. So, it feels like it’s value for money when we receive an extra item than we’d planned to buy, even if it cost us more.

There are two easy ways around this: first, don’t bump up your order price just to qualify for free delivery (unless it is with items you want and use regularly). Second, Google ‘Retailer + free delivery code’ to find a free delivery discount voucher to apply to your basket to save money.

Trick Four: More Items, More Discount

The mentality behind this online retailer trick is similar to that of ‘buy one, get one free’: the discount is only worth it if you want and use the items enough to warrant buying more of them.

This is a particular trick (or some might say, scam) for online retailers selling via social media platforms like Instagram. It’s very easy to click on the social post, go to the shop – an untried, untested, never heard of before retailer – and see a deal that says something like: “£15 for one, £25 for two, £30 for three”. But do you really need three knee massagers? Probably not. And, not only is this a buying trick, it can lead you to spending more money with scammers that won’t send you the item or process a refund.

The way to beat this trick is twofold: only visit legitimate online websites, rather than those through social media posts. Check online reviews of the stores too – independent review sites, not the ‘five star review’ testimonials anyone can make up and put on their own website. Secondly, only get multi-item discounts if you know you want and need the item. It would be prudent to order just one item the first time to try it out, and then if you like it you can re-order in multiples.

Trick Five: Scarcity Illusion

BUY IT NOW! 24 HOURS ONLY! How many times have you seen this on an online retailer website? Often accompanied by a ticking clock counting down to when the exclusive offer ends. If you log back on in two days’ time, chances are you’ll see the same offer still going.

The scarcity illusion is used by retailers all over the world, both in real stores and online. It drives the part of our brain that is also responsible for FOMO (Fear Of Missing Out) – we can’t miss the chance to get the thing at a great price. In reality, things are usually not ‘last chance’ or ‘last ones left’, as this is a selling tactic.

The exception is with seasonal sales from reputable retailers, where you would expect to see your clothing size run out or a popular gift item on a 24-hour special before a holiday like Christmas. These are still selling tactics, but more likely to be a way to genuinely save on an item.

Once again, the trick here is to recognise if you actually need (not want) the item in question. Would you pay full price for it? If not, why not? (Another trick you’ll see is a ridiculously inflated price before the ‘mega discount’ – if you wouldn’t pay the inflated price, it’s because you know the item isn’t worth it, and so the discount isn’t a saving anyway).

Retail expert Stephanie Hood from TheCMO.com says: “Beat the brands at their own game. If you have the patience, try adding items to your shopping cart and then leaving the website. Within hours, it’s likely you’ll receive an email nudging you back with a small discount. Retailers know that once you’ve shown interest in a product, you’re more likely to buy if you feel you’re getting a deal. This strategy effectively turns browsers into buyers by exploiting a common weakness—the fear of missing out.”

Save With Delivery Passes

The first way to beat online retailers at their sneaky games is to join them: many will offer an annual pass that is a one-off payment and covers all delivery (next day is usually included) for a single fee between £10-£20. If you have a particular favourite clothing retailer, for example, and you’re likely to order more than twice a year from them, a delivery pass can save you money. The same goes for supermarket deliveries – if you’re always getting your groceries delivered, a pass can save a lot across the course of a year.

Use Comparison Websites

We’ve all heard of a certain meerkat related comparison site, but did you know there are online tools to help you find the cheapst price for the item you’re looking for?

CamelCamelCamel is a reputable site that can track the price of any item on Amazon. Set alerts for price drops and also track the price history to see if you are actually getting a good deal or if it’s been falsely inflated prior to the ‘discount’ period.

PriceRunner, PriceSpy UK and Idealo are all price comparison sites for thousands of items, so you can find the online retailer offering the best discount on the product you’re after. This is a great way to save with your online shopping, even though it takes just a few minutes longer, as the website does the legwork for you.

Get Group Discounts

Did you know that you can buy online with strangers to save money? It’s true – and it’s legitimate! Just as we have co-ops in real life for things like buying heating oil in bulk to reduce the overall price, and splitting the cost with your neighbours, you can do similar online. We have a whole article about it here.

Search for Discount Codes

Before you buy anything online, add everything you want to your basket and then open a new tab. Search ‘Retailer discount code’ and check out the offerings available. Click on the code to copy it and paste in the ‘promotional code or voucher’ box at checkout. You might have to try a few different ones to find one that works, but it can save you a lot of time.

Try an internet browser extension that will find codes for you to save the legwork, such as Honey which is operated by PayPal.

If you’re a regular customer at a retailer, you can also create an account, fill your basket, and then abandon it. Many online retailers will send you an email in a few hours’ time asking if you found everything you wanted, and include a discount code to entice you back. This is a less common approach than it used to be, as retailers have cottoned on to the fact customers do this, but it’s worth a try if you can’t find any valid online discount codes.

Use a Cashback Site

We love cashback sites like TopCashBack and Quidco, because it’s a way to get a little something back each time you spend online. The great thing is that they will often have exclusive discount codes for you to use which means you’ll still qualify for cashback AND get an immediate discount on your purchase.

Remember that if you shop via a cashback site and use a discount code that’s not approved by them, you might not qualify for cashback. So, it’s worth weighing up the cashback amount versus the discount percentage if you’re using an off-site discount code. For example, if you found a 5% discount code but could get 10% cashback, it makes more sense to not use the code and claim the cashback. But if you found a 10% discount code and only get 5% cashback, it’s worth using both (and risking not getting the cashback).

The post Five Sneaky Online Retailer Tricks to Avoid appeared first on MoneyMagpie.

419 scams 

If a stranger contacts you (usually via email or telephone) and asks you to move money for them with the promise of a large sum of cash later, this is likely a ‘419’ scam. They will likely ask you to pay the admin fee to help them move this money between countries. According to Action Fraud, these emails may “involve countries such as Iraq, South Africa or somewhere in West Africa such as Ivory Coast, Togo or Nigeria, where the name ‘419’ (an article of the country’s criminal code) originates”.

If you receive a poorly written email or letter telling you they are in a position of authority and you need to act quickly, or you are asked to pay fees to release a large amount of cash, this is likely a 419 scam. They may even pose as investigators or distant relatives. 

Delete these emails immediately and if possible, block the sender. Don’t meet up with anyone or travel anywhere that’s asked of you. 

Accommodation fraud 

Have you ever booked a hotel or B&B, only to find out the location doesn’t exist? Hopefully not, but if you have, you may have fallen victim to ‘accommodation fraud’. To avoid this, book directly through a reputable travel company or through a well-known establishment. Ensure any travel companies are a member of ABTA or ATOL. 

Before booking, thoroughly research the accommodation, look for reviews from others who have stayed there and verify the address exists via web searches. If you have any doubts, or something doesn’t feel quite right, don’t book it! 

Advance fee fraud 

If you are asked to make a payment in advance of receiving a good or service that does not materialise, this could be advance fee fraud. Some fraudsters may ask you to make an upfront payment to receive a chunk of money or release funds. 

There are many scams that fall within this category – you can read more here. 

Application fraud 

When an account is opened in your name using fraudulent documents, it is known as ‘application fraud’.  Check your post or your email inbox for emails suggesting a new credit card or loan has been taken out in your name, and if you come across a direct debit on your bank statement you don’t recognise, contact your bank immediately. 

Protecting your identity and personal information is the best way to avoid this sort of scam. Keep your details private and locked away where possible, store documents securely and shred anything you no longer need. 

Auction fraud 

The use of website such as eBay, Etsy, Gumtree and apps such as Vinted and Depop has increased in recent years – leaving more people open to auction fraud. If you have issues buying or selling an item on these sites, make sure you know how to deal with them to avoid auction fraud. 

If you find out you’re unable to return the goods you bought, have money refunded or you haven’t been paid properly for an item you sold, there are steps you can take. You can contact the auction website for help and check the terms and conditions. 

Before buying an item, carefully read the description of the item and check previous feedback left for the seller. Also, make sure you use the auction site and don’t transfer money to anyone outside of the platform. Ideally, you should pay using a recognised service such as PayPal which helps to protect your money should issues with a seller arise. 

Bank account fraud 

Is there a transaction on your bank statement you don’t recognise? This could be bank account fraud, and you should contact your bank immediately.

Preventing identity theft can be crucial in preventing bank account fraud. Shred sensitive documents, ignore suspicious emails or texts claiming to be from your bank or building society, and remember your bank will never ask for your personal bank account information over the telephone. 

Fraudsters could also steal your cards or cheque book to gain access to your bank account. If you notice any unfamiliar transactions or misplace your bank card or cheque book, contact your bank immediately. You can also freeze your cards on banking apps to ensure they cannot be used. 

Benefit fraud 

Benefit fraud occurs when someone lies to obtain benefits and grants they are not entitled to. If you receive letters or emails suggesting you are receiving benefits when you aren’t, someone may be committing this type of fraud in your name. Similarly, if you are rejected from receiving benefits on the grounds you already receive them, someone may be impersonating you for financial gain. 

If you think this could be the case for you, contact your local council or benefits office and call Action Fraud for advice and guidance. 

Bogus tradesmen fraud 

Have you ever received a knock on the door from a smartly dressed person trying to sell you something you really don’t want or need? Bogus door-to-door sales or doorstep fraud involves fraudsters scamming you by selling fake goods or services or something that is poor value for money. 

Telltale signs of this type of fraud include pressure being placed on you unnecessarily, bogus charity pot collections, or overpriced and substandard home improvements. Some goods and services may be delivered, but very poorly. You may receive phony contact information – making it impossible to contact the scammer once they have taken your money. 

If you think you may have been a victim of this type of fraud, contact Citizens Advice, Action Fraud, or your credit card company or bank. Banks may not be able to reimburse you but could provide some insight and guidance. 

Bond fraud 

Also known as ‘boiler room fraud’, bond fraud is when fake stockbrokers, often based overseas, cold-call people and pressure them into buying shares that promise very high returns. Shares will likely be non-existent, and small investments for huge returns, and offers too good to be true are most likely a scam. 

Although it can be tempting to put money into bonds and stocks that offer large amounts of cash in return, if it seems too good to be true – it probably is.

If you receive a phone call out of the blue from a hard-sell cold caller, hang up and report it to Action Fraud immediately. According to Action Fraud: “Fraudsters aim to make their business seem legitimate, so they will often use technical jargon, impressive job titles and mock websites to appear credible.” It can be tempting – but not worth the losses! 

Business and career opportunity fraud 

Business and career opportunity scams are very similar but differ slightly. Business opportunity fraud involves offers to generate extra income and become financial independent, through setting up an online business or making easy money working from home.  

You may be asked to sell goods and services or do tasks such as assembling goods. Fraudsters will find fault in your work and give reason to not pay you. You may also be asked to pay money upfront to join the scheme or buy goods and services to sell on.  

If you’re offered lots of money to do nothing, promised high pay for easy work or asked to buy goods before you start, consider it may be a scam.  

Similarly, career opportunity scams are when bogus companies post job adverts. These scams often require an upfront fee, but the promised career and benefits are never delivered. If you have responded to a fake job ad, report it to the job website on which you saw it (if applicable) or contact Action Fraud.  

It’s also important to ensure businesses are legit by searching the firms on Companies House and be cautious when responding to job adverts posted on social media platforms. 

Cash point fraud 

Millions of us use cash points daily, and although handy, they are a huge target for criminals to steal your money. Firstly, never share your debit or credit card PIN, and when you go to withdraw cash, double check the machine has not been tampered with. If anything looks unusual, contact the bank which the ATM belongs to as soon as you can. 

When you use a cash point, cover your PIN by shielding the keypad. Ignore strangers trying to get your attention whilst using the ATM as it could be a distraction technique, or if they are particularly persistent, cancel the transaction and put your card away. 

Charity fraud 

We all give to charity from time to time, but unfortunately scammers take advantage of people’s generosity by committing charity fraud. Fake charities will ask you to donate to a worthy cause – however, the cash goes straight in their pockets. Be vigilant and ensure you donate to legitimate  organisations. 

You can check the charity name and registration number here, and check if they have good fundraising practice here. Ask any street collectors for ID and ask for more information if needed. If you are donating online, ensure the website address is legitimate and has a registered charity number on the website. 

Clairvoyant and psychic scams 

Scammers may approach you saying they have seen your future and that you need to pay them money for them to tell you what they have ‘seen’. This may be on social media, via text message or through a phone call. They will play on your emotions, saying something terrible may happen to you or a loved one – and if you pay, they can help you resolve this future issue. Never give any bank details to anyone claiming to be clairvoyant or psychic. 

Counterfeit goods fraud 

If you pay good money for designer goods such as clothing, accessories, electricals or cosmetics sold as authentic, only to find out they are fake, you are the victim of counterfeit goods fraud. To avoid this, check the labels of an item – fake items often have spelling mistakes. If you spot a bargain that seems too good to be true – it likely is! If you think you have bought counterfeit goods contact your local Trading Standards office to report it. 

Cryptocurrency fraud 

If you are offered the opportunity to get rich fast by investing in cryptocurrency or any other digital currencies, be wary. Scammers will convince people to sign up to crypto investment websites, handing over their bank information and personal info. Fraudsters will encourage victims to invest a little at first, then keep persuading them to add more cash to their account to achieve greater profit. 

If you invest in cryptocurrency, make sure you use a legitimate and trusted website. Don’t respond to calls or emails asking you to sign up, and check reviews for the website online before handing over any bank details. 

Debit and credit card fraud 

If you spot a suspicious transaction on your account, or think that either your card or your personal information has been stolen from you to use your credit or debit card, you could be the victim of debit or credit card fraud.  

Make sure you keep all your banking information safe – shred unwanted documents, file bank statements away safely, and don’t let anyone know your PIN number. Cut up old cards and sign the back of new ones as soon as you receive them. 

Electricity scams 

With energy prices soaring over the last few years, scammers are using people’s financial struggles to their advantage. Many people wish their electricity bills were lower – so how can you say no when someone comes to the door offering you £50 worth of electricity for just £25? 

Those with pre-payment meters are targeted in this scam. Criminals use fake electricity keys to top up energy credit illegally, claiming they are from the energy company. However, the real energy company will see they haven’t received payment for the energy put onto the meter – meaning victims will be left to pay for their energy twice. According to Action Fraud, more than 110,000 households have been affected by this crime. 

Financial investment fraud 

Investments can be a great way to gradually increase the value of your money over time. However, £1.2 billion is lost to investment scans in the UK every year, so it’s important you keep your eyes peeled for potential fraud. Investment scams often involve criminals calling you out of the blue to encourage you to invest in worthless or non-existent products, goods, services or schemes. Once payment has been received, contact is ceased, and it can be difficult to get back in touch with the scammer. 

Action Fraud suggests the following to protect yourself from financial investment: 

• Don’t be rushed to make an investment – legitimate firms will never pressure you. 
• Check the Financial Conduct Authority (FCA) register to see if the company is FCA regulated. If not, you may not be compensated if you lose money. 
• Seek independent trusted advice before investing. 

Government agency scams 

Have you ever received a letter, email or text message from the government or an associated agency asking you for money or personal info? These communications may look real, but they are likely a scam. This is particularly the case with correspondence demanding you pay a fee, sign up or register for a website, or requesting bank details to provide you with a tax rebate. 

If you receive communications such as these, contact the government agency directly or contact your local council for more advice. They will be able to check if you owe, or are owed money, or if this is a scam. 

Health scams 

“Use this pill to lose weight!”, “This product cured my illness instantly”, “Scientists can’t believe how well this works!”. Sound familiar? We have all seen adverts on the internet showing off ‘miracle’ health and medical products and services. They may appear to be legitimate but can often be a scam. 

These ‘cures’ will leave you out of pocket, may be dangerous for your health, or may not even exist. The chances of getting your money back are low, and it is very difficult to trace the scammers behind these fake businesses. 

If you are experiencing health or wellbeing issues, contact a healthcare provider or your GP for more information. In an emergency call 999. 

Holiday fraud 

There’s nothing quite like booking a holiday. The excitement of time away, memories with loved ones, and a break from the day-to-day. Don’t let that excitement go to waste by finding out the holiday or short break you’ve booked doesn’t exist or was a scam. 

Book your holiday through trusted travel websites or through hotel and accommodation websites directly. Check the legitimacy of the holiday provider by looking at reviews online and check the business on Companies House. 

If you haven’t booked a holiday but receive unsolicited text messages or emails offering fab vacation discounts, don’t click on any links or attachments. These scams use people’s love of holidays to steal your personal information or put malware and viruses onto people’s devices. Find out more about holiday fraud here. 

Identity theft 

When fraudsters have enough information about your identity, they can use this to commit fraud – whether the victim is alive or deceased. Name, date of birth and address can all be used for this. Although identity theft is a pre-cursor to fraud, it is not a recordable crime until financial gain is made in someone else’s name. 

Identity fraud 

When a fraudster has your personal information, they can use this to commit fraud. They may open bank accounts in your name, get credit cards or loans, take over any existing accounts you may have, or even obtain documents such as passports and driving licenses. If you receive a letter or bill for something you have not ordered or used, start to receive debt collection letters for debts that do not belong to your or get invoiced for a good or service you didn’t buy, you could be the victim of identity fraud.

If you believe you or someone you know is a victim of identity fraud, contact your bank, a credit referencing agency or Citizens Advice. 

Inheritance fraud 

Congratulations! You have been left millions by someone you have never even heard of. You’re rich! Unfortunately, this is likely a scam, and that money doesn’t exist. As tempting as it may be to respond to emails, text messages and letters claiming you are going to inherit a hefty sum from a kind individual overseas, this is likely inheritance fraud. 

A fraudster will pretend to be a lawyer or legal official, representing someone very rich who has passed and has left you a vast sum of money. If you respond to these scammers, they will ask you to pay several fees before they can give you the cash. They will encourage you to keep the deal secret to avoid government intrusion, and hurry you to decide, stressing the deal should be completed quickly. 

Fraudsters may pressure you to make payments to release the non-existent funds and may even ask for your bank details. Do not respond to these emails and do not give any personal information to these scammers. 

If you receive an email or text message that you believe to be a scam, report it to Action Fraud immediately and cease contact with the scammers. If you have sent money or given your bank details to anyone, alert your bank. 

Invoice scams 

If you receive an invoice or bill for a good or service you haven’t used or that don’t look quite right, this could be a fake invoice. These fake invoices use pressure tactics to make you pay a fake bill – often the due date for the ‘payment’ will have passed or they may threaten legal action if the bill isn’t settled. 

If you are unsure whether the bill is legitimate, contact the company directly and ask. If it is from a company you have never used or even heard of, do not respond and contact Action Fraud. 

Loan repayment fraud 

Fraudsters are clever. They will use tools to make letters, emails and websites look legitimate to snatch your hard-earned cash. They will also use company names very similar to those of existing loan companies. 

Loan repayment fraud is when letters, text messages or emails are sent out from fake loan companies claiming a repayment has been missed and the recipient has received a penalty charge that they must pay. Victims may feel panicked and pay this money, only to later find out the loan company never existed. 

If you receive a suspicious letter or any correspondence, contact your loan company directly. A real company will be more than happy to answer your queries. Look at any paperwork you have from loans you may have taken out and check the information matches up. 

Loan fraud 

If you are taking out a loan and are asked to pay an upfront fee in order to receive it, think twice. Never reply to adverts for fast loans, and if you do, make sure you are not charged a fee to get the money. Legitimate companies will not ask for upfront fees from you, and once the fee is paid you will likely never hear from the bogus loan company again. If you have been a victim of this type of fraud, contact your bank directly. 

Lottery scams 

Congratulations, you’ve won the lottery. But wait – you didn’t even enter the lottery! This is probably a scam. When fraudsters tell you you’ve won a large sum of money in the lottery, a sweepstake or prize draw, they will ask for personal information and bank details for you to receive your winnings. Except there are no winnings – and in the blink of an eye you have given scammers all your sensitive info. 

Most often, scammers will tell you that you’ve won a lottery from overseas – Spanish, Canadian and Australian are most common. You may even be asked to pay legal fees or international money transfer fees. A legitimate lottery will never ask for upfront fees. 

Don’t respond to competitions or prize draws you haven’t entered. Alert your bank immediately and report to Action Fraud. 

Malware 

Malware is software that compromises your computer or other electrical device to collect information saved to your hard drive. It’s also known as ransomware, viruses, worms, trojan horses, spyware, adware, scareware and crimeware. 

Make sure your computer is installed with anti-virus software to protect against infections. Take care when opening attachments or clicking on links within emails – always check they are from a known or reputable sender. Take care when clicking on adverts or links on websites – don’t follow links to unknown websites. 

Marketing fraud 

Are you inundated with text messages, letters, brochures, junk mail, phone calls or emails from companies advertising their goods and services? Some of these could be a con. These scams work by luring you to by something that does not exist to gain your cash. False promises will be made to encourage you to part with your money. 

Do not buy anything from low-quality websites or via emails and texts that don’t seem right. If you receive cold calls trying to sell you a good or service, hang up immediately and cease all contact. 

Mobile phone fraud 

There a quite a few types of mobile phone fraud to look out for. These include missed call scams, recorded message scams, text message scams and phone insurance scams. 

Missed call scams are hen your phone receives a missed call. When you call the number back, you will be charged huge sums of money for the call. If you are left a message that asks you to call back as you have won a prize or sum of money, this is likely a recorded message scam and should be ignored and deleted. 

Text message scams are very common. Sometimes, scammers will text suggesting they know you, and ask you to text or call back. Whichever you choose to do, you will be charged a large sum of money to do so. Phone insurance scams are when someone calls you up trying to sell you phone insurance. They may claim to be from your mobile provider. If you are unsure, hang up and call your provider directly. 

Money mule 

A ‘money mule’ is someone who transfers stolen money between countries or bank accounts. You may be promised a sum of the money if you help to transfer it – but beware, you could receive a lengthy prison sentence, even if you are not aware you are taking part in fraud. You can read more about money muling in our article here. 

Online fraud 

The internet is an amazing tool. Unfortunately, fraudsters use it to take your hard-earned cash. There are so many types of online fraud. Action Fraud has a great list of the types of online fraud, which you can read here. 

Payment fraud 

Falsely creating or diverting payments is known as payment fraud. It can include creating bogus customer records and bank accounts to generate false payments, intercepting and altering payee details on cheques and creating false payment info to creating fake claims for benefits, grants or payments. 

Pension scams 

We all hope for a comfortable retirement, with the help of savings and a pension. But scammers will target your pension for their own benefit, leaving you in the dust. Don’t let a lifetime of hard work go to waste – look out for pension scams. They can be hard to spot, so it’s important to know the signs.  

Scammers will usually contact people out of the blue and try to gain your trust by claiming they are a trusted and FCA-approved pension provider. They may even claim to work for the Department for Work and Pensions or another government agency.

Whoever they claim to work for, they will ultimately try to persuade you too transfer your pension pot to them for high returns.  

They will often encourage you by telling you they can double your pension savings (or more!), help release cash from your pension early, or use complicated jargon and financial talk to impress you. 

Never give your pension to someone claiming they can make you rich, double or triple your returns or help you release pension funds early. Legitimate pension providers will not encourage you to release funds before the age of 55. Always check the FCA website to ensure it is a legitimate company. Contact your pension provider directly for advice or go to Citizens Advice or Pension Wise for free, impartial support. 

Phishing 

‘Phishing’ is perhaps one of the most common types of fraud. This is when criminals use fake messages – emails, texts or social media messages – to lure you into clicking links or opening attachments. They may ask for sensitive banking information or personal details too. Cyber criminals are refining their methods, and emails, websites and text messages can look very real. 

Once you click a dodgy link, your device may be compromised, or you may be taken to a clone website – a website that looks identical to that of a legitimate organisation. You will then be asked to input personal information or bank details. 

If you receive a suspected phishing email, text or social media interaction, block the account immediately and report it to Action Fraud. 

Ponzi schemes 

A ‘Ponzi scheme’ is when a fraudster promises investments that give extraordinary returns. These scammers will lure you into handing over your money, promising to invest it and help you get rich fast. However, these investments do not exist, and the returns promised are almost impossible in such a short space of time. 

Initially, the scammers will give you the promised returns on your investment – this will encourage you to invest again, as well as spread the word to others. The scheme also gains credibility. The money is not actually invested – so there are no real profits. Instead, the initial investors are paid with the money from secondary investors, and so on. 

When the system starts to collapse, fraudsters will vanish with the money, with investors losing all their investments. In this case, it can be extremely difficult to receive compensation for any lost money.  

If someone promises huge investments on your money that seem too good to be true, they probably are! Investing tends to be a slow and steady climb over an extended period – so don’t fall for get-rich-quick schemes or promises of huge returns in a short period. 

Pyramid schemes 

Extraordinary profits? No risk? Yes please! Actually…no, thank you. Multi-level investment schemes that promise huge profits with no risk and minimal effort are likely to be a scam. You will be asked to pay an upfront fee to enter the scheme, then asked to recruit friends and family. They will then recruit others, slowly building the levels of the scheme – or building the ‘pyramid’. 

Pyramid schemes are unauthorised businesses and make no profits – so you are unlikely to recover any funds you lose. Your money is not invested in products a lot of the time – or will be invested into poor quality items that are hard to sell. The money goes up the pyramid, passed up the chain of investors. Those at the very top of the pyramid will be earning a nice sum, whilst those at the bottom lose out. 

Scammers will use hard-sell techniques to get you to join, as well as using impressive stats and jargon to increase credibility. Always research a company before joining – look at reviews, investigate the company’s status and check their contact details.  

If you think you are a victim of a pyramid scheme scam, report it to Action Fraud. Contact your bank to cease any investment in the company and contact Citizens Advice for impartial support. 

Recruitment scams 

A scammer will pose as a recruiter who wants to hire you for a job. Commonly, this scam involves job offers in a foreign country. However, the job doesn’t exist. It can be exciting being approached with an amazing job offer – but always be cautious. 

You may be asked to fill in documents giving the ‘recruiter’ your personal information and bank details. If the job is abroad or cross-country, you will be asked to pay set-up fees. These include admin fees and deposits for any accommodation. In reality, no arrangements are made, and you are out of pocket. 

Rental fraud 

Looking to rent, or considering moving to a new tenancy? Beware of rental fraud! Prospective tenants are tricked into paying a deposit or upfront fee to rent a property – but the property either doesn’t exist or has already been rented out. Students are often targeted, as they need university accommodation. 

Romance scams 

Be careful when internet dating – scammers are out to get your money! Romance scams are when someone is duped into sending money to someone they believe to be in a relationship with. Scammers will gain your trust, convince you you’re in a committed relationship with them – then exploit your good will for money. 

They may suggest there has been a medical emergency that they need cash for, or say they need help  paying travel fees to meet you, so they can pursue the relationship in person. These scams can be long-term, with relationships and trust build over several weeks, months or even years.  

If you believe you or a family member or friend are the victim of romance fraud, cease contact and never send money. Crime Stoppers UK has great information and useful tools to help victims here. 

Ticket scams 

Is there anything more devastating than turning up to your favourite singer’s concert, only to be turned away at the door due to fake tickets? 

Fake ticketing websites are becoming harder and harder to spot. Websites will offer the chance to buy tickets for a popular event, however tickets don’t exist, or the event is sold out. You may pay for ticket that never arrives or agree to meet someone on the day of the concert to retrieve the tickets – but no one shows up, leaving you out of pocket and disappointed.  

Before buying tickets, check with the event organiser or the venue to see how and where tickets will be sold. Check the company is legit by looking at reviews and seeing what people’s experience has been like with them. Check they are a registered company, have an office and a proper address rather than a PO Box. 

Pay for tickets with a credit card where possible, as you may be able to claim compensation if you buy fake tickets. Also beware of ticket resale websites.

The post How to avoid scams: Guide to online scams, fraud and phishing appeared first on MoneyMagpie.

Black Friday is a phenomenon that hit our shores back in 2010 and has grown bigger every year. In fact, 30% of all annual retail sales happen between Black Friday and Christmas: it occurs on the last Friday of November.

This year, with so many of us worrying about our finances, retailers are pushing Black Friday ‘deals’ very hard, both in store and online. But how do you know if you’re going to get a real bargain, rather than wasting your cash?

Jasmine says, “It’s so easy to be taken in by clever marketing tactics. They make us think that we’ve nabbed ourselves a bargain and stop us checking to see if it really is the cheapest – I know I’ve done it! The problem with Black Friday is that there’s a weight of advertising and hype around the whole event that makes us think that anything we get in a Black Friday sale is definitely going to be a bargain. It isn’t. In fact, some studies (like ones from Which?) have found that in most cases you’re likely to be able to buy that item cheaper somewhere else than in a Black Friday sale!”

Although we love a good bargain, we also want to make sure you’re getting the best deal possible. So, before you head out shopping, read our 4 reasons to beware of Black Friday below.

1.Beware of Brands You Don’t Know

The best offers aren’t always provided by the big brands. Small retailers often jump in on the act too and provide some really good deals. If you do, however, get tempted by an offer on a site you don’t recognise, you should check their authenticity before you buy.
Impartial reviews are available to read on sites such as Reevoo where you can run a background company check online, which includes their credit score. If you are buying online, always pay with credit card or Paypal to make sure that your transaction is protected.
Also remember that Black Friday products do not guarantee extended return policies either, so if you’re buying for Christmas, do check in advance. This is especially important right now when many shops might offer a full Black Friday closing down sale – so you won’t be able to return the goods when the shop is closed permanently.
One thing to keep in mind, though, is that major card providers such as MasterCard and Visa will reimburse you the cost difference if an advertised Black Friday price is lower than the price you recently paid for the same item.
You need to send your receipt, the ad and a claim form within 60 days of the ad’s publication.

2. Beware of Losing Money

If you’re a small (or big) business taking part in the Black Friday frenzy, you could actually end up losing money.
In the last few years, customers have gone into serious spending mode online with bargain buying, and as a result, many businesses failed to cope as their websites struggled to handle the demand of traffic.
An example of this is Argos which saw its website go down for two hours in the 2014 Black Friday sales because it simply wasn’t prepared for the high quantities of traffic. Research by Six Degrees Group estimate that this website fault could have cost them around £5m.
Research by Deichmann in 2020 revealed that most people haven’t a clue when it comes to bagging a bargain, either. Of almost 6,000 adults surveyed, only 9% worked out that a ‘buy one get one free’ offer isn’t as good value as a “buy one, get a discount on second item” offer. Make sure you’re up-to-scratch on your maths before you make any big purchases!
So it’s important if you’re a small business to prepare properly in order to avoid losing out on revenue on this day. Take a look at this useful guide on how to prepare your website for the Black Friday frenzy…or just decide to ignore the day and do your own flash sale in December to pull in the crowds!

3.Beware of Scams and Fraudsters

Black Friday is a great day for fraudsters and scammers to take advantage of shoppers, so make sure you’re extra cautious when looking for deals.
Just because someone uses the words ‘cheap’ or ‘discount’ doesn’t mean that it’s always a good deal. Usually, where the prices seem too good to be true, it means the goods may also be fake or faulty. If a deal seems too good to be true, it probably is!
This also means you MUST make sure you know the returns policy on what you are buying, especially electrical and other expensive items. Reputable sites and retailers will have no problem being upfront about the ins and outs of their policies so check before you buy.
Faced with the right pressures, we’re all vulnerable. Fraudsters put people into what psychologists call a ‘hot state’. This is when we think less clearly if we are eager to spend during the frenzy of deals and sales. We tend to lose the ability to do due diligence and the hope of getting a bargain can be a compelling lure.
As we shop online more than ever, it’s easy to fall victim to a scam.
Make sure to beware of scam emails, too. Fraudsters will send emails under the guise of being a popular high street retailer offering amazing discounts. Clicking on the links may leave you vulnerable to fraud. Always check the email address from which a message is sent, to make sure it is legit.

4.Beware of Impulse Buying

Do you actually NEED the thing that’s on an amazing Black Friday deal? Or do you just WANT it?
Black Friday can offer significant savings on really good products, so make a list of what you know you need or want to buy as gifts, and scope out the costs and where the goods are available beforehand.

It’s easy to get lost in the excitement of the sales on Black Friday, so carefully consider if you are making a sensible purchase that you’re going to get use from. This is important even if you don’t go into the shops but just go online. It’s still too easy to be sucked into buying something you don’t need or want. Research your items in advance too – so you can spot a fake discount!

A previous survey by TopCashBack has found that nearly half of UK consumers are waiting for Black Friday sales to buy big ticket items they’ve been wanting for a while and more than a quarter have been holding-off since August. On average, consumers are planning to spend around £421 in the sales but hope to save £228, i.e. they’re hoping to get a 35% discount on their purchases.

Of course, they might get some good discounts if they have researched the items beforehand and know how much they should be. But it’s all too easy to be made to think you’re getting a bargain when you’re not.

Jasmine reminds us all that her “biggest piece of advice when it comes to Black Friday is to ignore it…unless there is something specific that you know you need (and I mean ’need’) which you have already researched and you know how much it is normally. If you then look around at the ‘offers’ on this item and find a genuine price drop in the sale then go for it, but otherwise I would just ignore the Black Friday so-called deals.
The vast majority of them are not good offers and, worse than that, the hype and hypnotism around this supposed sale time could potentially mesmerise you into spending money on things that you don’t need or even want using money that you can’t actually afford to spend. This happens to loads of people every year at this time and I suggest that you protect yourself by simply keeping away from the websites and shops around this time. Really, if you don’t go in (physically or online) you won’t be tempted. That’s the way I operate and I recommend it to everyone else!”

Much of the same applies to Prime Day – read more about that here. 

The post How to Safely Navigate This Black Friday appeared first on MoneyMagpie.

Harland Guscott runs Guscott Heating in Kent and he’s got several clever ways that we can cut our heating bills down. See this video where I ask him about his tips (it was filmed by my nephew Tommy so apologies for any wobbles!).

maximising your boiler to bring down energy bills

Harland says that even if your boiler is 10-15 years old it can still work really well if it’s regularly serviced and fine-tuned to the needs of your home. You don’t need to buy a new one. In fact they can last well to 20 years.

heating

The first thing he asked was if I knew what the ‘flow rate’ of my boiler was. No I didn’t. But I do now!

The flow rate is the temperature at which the water leaves a boiler to go round the heating system.

My flow rate was at the top heat of 75 degrees when it doesn’t need to be more than 55 degrees. ‘

To make this adjustment you need to find the radiator symbol on your boiler and turn it down.

‘The best way to find that is through your operating manual or you can ring the manufacturer or a heating professional and they will talk you through it.’

This adjustment alone will save me about 16 per cent on my gas bills.

‘For every 10 degrees you reduce the flow rate you save 6-8 per cent on you bills,

hot water

Look for the hot water symbol (usually a tap) on the boiler and check the temperature. Most people add cold water when they use the hot tap which is a big waste. If you’re doing this, lower the hot water temperature to a point where you don’t need to add cold.

If it isn’t warm enough when you use it next, you can always raise the temperature again.

For every 10 degrees you lower the water temperature by you will save 3-5 per cent on your bills.

boiler gizmos

Weather compensators and smart controls can help to adjust the flow rates of the boiler for you, depending on the temperature outside.

It would probably cost you between £100-200 to install but would increase your home’s heat efficiency by 3-5 per cent.

check the output

Much of the inefficiencies happen because of poor installation, says Harland. That’s what really creates the big energy bills.

Make sure your boiler isn’t over-working for the size of your property.. In many houses, you could reduce the output significantly and this would reduce the bills again.

Most boilers are installed running at 24KW and yet most houses only need them to run at 6-10KW. You need the controls set at the most efficient levels.’

‘When you get someone to install a boiler they should take into account how many rooms you have and they should set the controls at the most efficient levels.

Ask them how they will fine-tune your boiler and set it up correctly with the right flow rates.

also, get them to show you how to change the flow rates yourself and the boiler’s output and then you can control things yourself.

getting the radiators sorted

Harland pointed out that radiators are important for the efficiency of the boiler

• Check the radiators once a year to check that there’s no sludge. If there is then bring in a plumber to bleed the system and give it a good clean out.
• You can tell if the radiators are efficient by putting them on and feeling the top and bottom. If the top is hot but the bottom isn’t then you have a load of sludge there.
• Keeping the radiators clean and working property will mean the boiler has to do less work and it will cost you less.

other energy bills-saving heating hacks

People like me are always telling others to drop the thermostat down by one degree to cut the cost of your energy bills.

Harland goes a step further saying that we should find one temperature that we’re happy with – say 19 degrees – and stick with that. “Don’t keep turning it up and down, just keep it at that one level” he says.

He also says that we should check all the windows and doors for heat escaping. Get the draughts fixed, ideally when it’s still warm, so that you don’t have to keep the heating on longer and use more energy.

The post Boiler Expert Shares Exact Heat to Keep Energy Prices Down appeared first on MoneyMagpie.

As if cyberbullying, inappropriate content and online predators wasn’t enough for parents to worry about in this high tech age, now there’s a shocking new threat sweeping the nation. 

Primary and secondary schools across the UK have been urged to hold assemblies warning youngsters about the dangers of becoming a ‘money mule’. 

Social Media Targeting of Children

Anti-fraud agency Cifas and banking trade body UK Finance say criminal gangs have been approaching children through social media and telling them that if they allow money to be paid into their bank account and they cash it out or send it to another account, they will be allowed to keep a cut for themselves. 

The ploy, attractive to youngsters wanting some seemingly easy extra pocket money, is actually making them complicit in a crime. 

There has been a lot of criticism of our social media platforms, particularly from the government who believe they are making it far too easy for crooks to target children online. 

Can Schools Help Combat This?

So worried are schools by the threat that in the past two months more than 300 of them have signed up to classes for pupils and teachers to alert them to the risks. 

Security minister Tom Tugendhat says tech companies must do more to identify and block mule recruitment. 

He is backing the Daily Mail’s Stop the Social Media Scammers Campaign and says: ‘Social media makes advertising cheap and easy, turning apps like Instagram and Snapchat into a rich hunting ground for criminals to identify and recruit money mules. 

‘It’s time social media giants stepped up to better protect users’. 

It’s perhaps not surprising that with students starting at universities, more than half of them are being approached by criminal organisations, according to a report by crime prevention group, We Fight Fraud. 

Teenagers like to think they’re tech savvy – how often has yours rolled their eyes when you type out texts using one finger or can’t use the remote control at warp factor speed?  Nine out of ten of them claimed they’d recognise suspicious messages or fraudulent recruitment. 

66% of Uni Students are Approached buy these Scams

Yet a surprising, and worrying, 66% of university students approached via social media with the lure of earning up to £1,000 a day, responded by sharing their details and engaging with the sender, according to We Fight Fraud’s research. 

Nicola Harding, a criminology professor at Lancaster University, who works with We Fight Fraud, invited students to take part in an ‘online focus group’ about fraud, with 30 students signing up. 

She and her team then added all the participants on social media platforms and Instagram and Snapchat without them knowing.  After a cooling off period, the researchers sent an initial message to each participant asking them to fill in a survey. 

It read: ‘Hi!!!Can you do me a massive favour pls. I got a new job and was hoping you could fill out this survey, I get paid everytime someone fills it out and I really need the money tbh(to be honest).  You’ll be really helping me out’. 

Within 24 hours, 20 of the 30 students had filed ut the survey and engaged with the scammer. 

Some Real Kids Tell Us About Being Scammed

Holly was just 17 when she was approached through Instagram and Snapchat and claimed acting as a money mule was so ‘normal’ in her group of friends that she forgot it was illegal. 

Another 15-year-old admitted: ‘I had nothing in my bank account, I figured I had nothing to lose.  They couldn’t steal any of my money because I had none’. 

But the bank noticed the money mule transaction, her account was closed down and she was left without a debit card for months. 

Scammers use dodgy job listings like ‘make money from your own home’ but the penalty if you are caught can be up to 14 years in jail and a damaging criminal record which can affect the rest of a youngster’s life. 

It can also affect them getting a new account when the old one shut down, and their ability to get loans or credit. 

Although police forces are more keen on catching the gangs behind the scam, they have convicted students in the past. 

In 2018, two students, Abdi Mohamed and Nyanjura Biseko, both 22, pleaded guilty after more than £10,000 of fraudulantly obtained money was transferred into their accounts. 

Police said at the time that although they might not have known where the money had originated, they knew or suspected it was criminal property. 

Mohamed was jailed for six months  and Biseko was given a 12-month community order with 80 hours of unpaid work. 

What to do if you fear your child is vulnerable to a money scam

If you or your child has been approached, report the account for illegal activity.  It’s also worth taking a look at Financial Fraud Action UK’s Scam Academy.

The ‘rinsed’ profits being passed through legitimate accounts can come from anything from fraud, drug dealing or people trafficking. 

Earlier this year it was revealed that Birmingham had recorded the highest number of money mule cases of any council area in the country- 3,000 cases between January and September last year. 

Cifas warned that the number of 14-18-year-olds misusing their bank accounts has increased by 73 per cent in the past two years. 

While teachers are constantly taught about safeguarding, they admit there is little information about financial fraud. 

One expert at Lloyds Bank said the most common way a money mule is contacted is on Instagram and then the fraudsters move the conversation to messaging app, WhatsApp. 

Typically, the mule will be instructed to move funds from the bank account to a foreign exchange platform where few questions are asked, and then the recruiters collect the cash. 

Tell-tale signs that your child might be involved in money muling could be suddenly having extra cash, buying expensive new clothes or top of the range mobiles or gadgets with little explanation as to how they got the money to pay for them. 

They might become more secretive or stressed especially if their recruiters are threatening them with violence or potential physical attacks if they don’t continue working for them. 

Further Reading

How to Avoid Scams: Our Complete Guide to Online Scams, Fraud and Phishing

You can report money muling to your local police on 101 or 999 in an emergency, or if you prefer to remain anonymous, you can contact the independent charity Crimestoppers on 0800 555 111. 

The post Could Your Child be the Target of this Latest Money Scam? appeared first on MoneyMagpie.

Things have improved over the last few years (see the section below about a landmark case in 2011 that helped this) but you still have to be careful with potentially unfair gym contracts. Gyms are businesses and, particularly in January and the run-up to the summer, they have lots of people trying to get in, so there is still the possibility of sharp practices going on.

• Cancelling a gym membership
• Is your gym fit to join?
• How to cancel unfair gym contracts
• Is your contract unfair?
• Ashbourne Management Services
• Be careful with any contracts

Cancelling a gym membership

It used to be a major problem for consumer organisations, but cancelling gym memberships has become a more transparent and somewhat less-fraught operation than it used to be.

There’s good advice on the Citizens’ Advice Service website about how to cancel your membership, and also on the Which website, so check those out.

Also, if you have taken out a gym membership and realise a couple of months’ in that there’s a problem with the gym, or the contract, or your situation, read on!

Is your gym fit to join?

Photo by: www.localfitness.com.au

Thanks to new(ish) guidelines from the Office of Fair Trading, gyms and fitness centres now have to have fairer terms in their contracts so that people are not trapped for years paying for overpriced and under-performing gym memberships.

With many gyms, you can now even cancel if you have moved away and cannot visit their premises regularly. You can also cancel if you get ill and are not able to do the movements you used to be able to.

The Office of Fair Trading has some guidelines here to show you if the gym you’re thinking of visiting is ‘fit to join’ – i.e. what to look out for in their membership contract. Take a look at it here.

How to cancel unfair gym contracts

Sadly, as with other contracts, if you decide you don’t want to go back to your gym after a few months, you are likely to have to pay a fee, usually equal to the amount you would have paid for the remaining months.

So, if it costs you £100 a month and you cancel after four months, they will probably expect about £800 from you. Contracts vary of course so check yours. But be prepared.

In some cases, gyms allow you to transfer your membership (for a fee) to someone else. Again, it depends on the contract, but if you want to offload it to a friend, or you find someone on Facebook or Gumtree perhaps who wants your membership for cheaper, then speak to your gym about it.

However, if your gym contract is worded unfairly then you can cancel it without penalty.

Is your contract unfair?

There are various things that could make your gym contract unfair – and therefore void. For example the contract could include one of the following:

• It will allow the contract to be automatically renewed without your say-so
• There is a minimum contract term that’s longer than a year
• The gym facilities are allowed to change in a major way while you are there
• It allows the gym fees to change significantly mid-contract

Any of these factors could mean you’re the victim of unfair gym contracts and it will nullify your membership. If that’s the case then you can cancel your membership without having to pay a fee.

Ashbourne Management Services

Back in 2011 the Office of Fair Trading took one gym company to court over their unfair gym contracts and won.

A company called Ashbourne Management Services Ltd drew up membership agreements and collected payments from about 300,000 customers of small gyms in the UK. These contracts tied people into membership of clubs for between one and three years. They also demanded immediate payment of the full sum – often hundreds of pounds – for the whole minimum period if people left after a few months.

They were really heavy-handed in their dealings with people who needed to leave because they left the area or just didn’t want to go anymore. If people refused to pay for the minimum term, Ashbourne threatened to damage their credit rating by referring the debt. The firm had registered nearly 17,000 defaults with credit reference agencies by July 2009.

The Office of Fair Trading (OFT) brought an action against the company after they had loads of complaints about their unfair gym contracts. Happily, the judge agreed with them. He said that the ‘minimum period’ was a trap the consumers could easily fall into. He said it was also unfair of them to demand payment even when the member had a genuine dispute about the quality of the gym.

He ordered that Ashbourne stop using or relying on its current standard unfair gym contracts and refrain from using unfair terms in the future, insisting that they should make the contracts no longer than 12 months long. Ashbourne has been told they may not report or threaten to report consumers to credit reference agencies if their terms continue to be unfair.

The judge decided that the contracts couldn’t be treated as credit agreements – if they were classed in this way then Ashbourne would need a license.

Be careful with any contracts

So, as always, be very careful about the contracts you sign, particularly unfair gym contracts. Avoid any leisure centres that insist on anything more than a six-month contract unless you are a total gym-bunny and you know you will go at least three times a week. These contracts are often nasty and they will continue to be nasty until more court cases like these stamp on them!

In fact, if you check out our article on how to cut the price of your gym membership, you will see that there are loads of cheaper alternatives, including PayAsYouGym, which gives you the option of one day and one month bundles enabling you to use gyms all over the country, not just a single one you have to keep going back to.

The post Don’t become trapped by unfair gym contracts appeared first on MoneyMagpie.

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What exactly is the pink tax? The pink tax is the extra cost placed on items targeted towards female consumers. Most often, the only difference is the colour – men’s items may be blue, whilst women’s are pink – hence the term pink tax.

This is not necessarily because women are buying anything different than their male counterparts, but because female-targeted products are often more expensive than alternatives marketed to men.

Here, we discuss the items and commodities women still pay more for in their daily lives due to the pink tax, and how all of us, no matter what colour toiletries we use, can take steps to initiate change.

• Toiletries
• Sanitary products
• Clothing
• Dry-cleaning
• Toys
• Why does it happen?
• Why is this an issue?
• Avoiding the Pink Tax

Toiletries

Women are still paying up to 34% more than men for their toiletries. The likes of shower gel, shampoo, conditioner and facial and body moisturisers are just some of these items which cost more for women than men.

Tax refund specialists RIFT compared the prices of over 600 toiletry products across six of the UK’s major retailers. These retailers are Asda, Tesco, Sainsbury’s, Morrisons, Boots and Superdrug. The results of this study showed a disparity in the prices of identical toiletry products. Shockingly, they found that women are charged inflated prices, simply because of their gender.

Many of these items, including deodorant are everyday essentials – so why are women paying more (at £2.08) than the men’s alternative (£1.91)?

The RIFT study showed a big difference in one particular item – facial moisturiser. A 50ml tub of women’s facial moisturiser cost £10.77, whereas the male equivalent cost £8.02. A few pounds may not seem much, but this is actually a difference of 34.28% in price.

Similarly, a four-pack of women’s razors cost £3.38, whilst the male equivalent cost £3.18 – a 6.25% difference.

Now it may only seem like a few pennies here and there. But these pennies add up. Over a year, over a lifetime, these costs are extortionate when compared.

Sanitary products

You may be surprised to hear sanitary items are not classed as ‘essential items’, but instead are deemed luxury products. Yes, you read that correctly. Tampons, sanitary towels and other items needed during menstruation are classed as luxuries.

Items that are considered to be essential, by law and in tax terms, include Jaffa Cakes, toffee apples and, wait for it – crocodile meat. This means no tax is to be paid on these ‘essential’ items. They were declared basic household items in the 1970s.

It took until January of 2021 for the 5% tax paid on ‘luxury’ sanitary products – known as the ‘tampon tax’ – to be abolished in the UK. This meant women and girls had to pay 5% VAT on these items. A huge price increase for something people have no choice but to use.

Although this is a big step, the World Bank estimates that 500 million women and girls globally still lack access to adequate facilities for menstrual hygiene management. This is most commonly due to the inability to afford these items due to their high price points. In fact, the gross profit margin on feminine hygiene products can be as high as 70%. This is a staggering statistic.

Clothing

Yes, even essentials such as clothing tend to be listed at higher prices if they are targeted to a female audience. In 2020, The Times found a whopping 46% difference in the price of a pair of Levi’s 501 jeans. The women’s jeans were the same waist and leg length as an alternative pair targeted at men but were almost 1.5 times the price.

In fact, on average, women’s clothing cost nearly 8% more than men’s. Another example of this was found by The Independent in 2020, after finding a woman’s white short-sleeved t-shirt in Topshop cost £12. An identical t-shirt sold in Topman was just £8 – a difference of 50% in price.

Children’s clothes follow the same pattern. It seems this discrimination is in motion from childhood. Online parent community Channel Mum found 71% of parents believe they pay more for girls’ clothes – including on school uniforms. Channel Mum also found that one third of parents say they would boycott stores that use gender-based pricing

School blouses and polo tops are 2.73% more for girls than boys. School trousers for girls are £9.35 a pair, whereas a boy’s identical alternative is £9.23. The same goes for underwear, which is 5.8% more expensive for girls than boys. Although it may be subtle, the difference is clear, and it exists.

But why is this the case? Many argue men and women’s clothing is constructed differently, but the Department of Consumer Affairs (DCA) highlighted that retail prices are set by retailers and not the manufacturers. “Price differences are due to business considerations, and because women are generally willing to pay higher prices for their clothing than men, they often are charged more.”

Dry-cleaning

It’s not just the clothing itself that costs more. Dry-cleaning even costs more for women than men on average. Blazers and trousers tend to have similar prices – but the cost of dry-cleaning shirts and blouses does differ.

This is not a new issue, either. A study publishing in the journal Gender Issues in 2011 found the average price to clean a man’s shirt was £1.58. A woman’s shirt needing the same type and length of cleaning, cost on average £3.03. This figure also comes before the added costs applied to some female clothing – for embellishments, pleats and sequins.

The stats resulting from this are shocking. If a man and woman got one shirt dry-cleaned per month for 10 years, on average, it would cost a man approximately £190. A woman would end up paying almost £364. Over a lifetime is when the disparities become even more stark.

Toys

Even toys can’t escape the pink tax. In a study conducted by the DCA, 794 items were analysed across 35 product categories. This study found that on average, items such as scooters and bikes cost 4% more than the same products targeted to a male audience.

Similarly, accessories such as bike helmets cost more for girls than boys. A 2019 study, also conducted by the DCA, found that toys such as board games, action figures and toy cars cost a whopping 55% more overall for girls than boys.

The reason? Toys aimed at a boy sell more quickly, and sell in greater numbers. This giving companies a wider margin for price negotiation. However, there is no concrete data or evidence to back up this claim by retailers and manufacturers.

Of course, there are some financial reasons (discussed below), but in terms of evidence-based studies, there is nothing.

Why does it happen?

Well, there’s honestly no one set answer. The idea that girls like things that are pink, sparkly and ‘pretty’ – while boys like blue things – is ingrained in us from the minute we are born.

It works out well for the industries that produce these items. They play up to these stereotypes and gender expectations in their advertising. More often than not, consumers do end up buying the products designed for a particular gender. Thus, these industries profit from these social constructions of gender norms. They know advertising targeted to a particular audience is more likely to sell a product than untargeted advertising.

It also generates greater revenue as they know differentiating toys with typically male and female colours, characters and purposes increases sales. This is because families with more than one child of different genders, will likely buy different toys for their children as a result.

These gender norms and the resulting advertising, seep into adulthood. A man and a woman who are in a relationship will buy two sets of products – ‘his and hers’, if you will. Even though the products are the same, and the couple may live under the same roof, they buy separate shower gels and shampoos.

Supermarkets utilise this also. Male and female toiletries are often in separate areas of a shop. It only subconsciously separates the genders further in our minds and reinforces the idea of separate male and female products. It also prevents us from noticing any differences in price.

Why is this an issue?

While it costs women significantly more over their lifetime to buy household items, goods and services, and even basic essentials, there are other socio-economic impacts that come into play.

The gender price gap is not only harmful to women’s purses due to them having to shell out more to purchase items, but the gender pay gap only succeeds in exacerbating this.

In 2020, the gender pay gap actually increased from 14.9% to 15.4%. This means, for every £1.48 a woman earns, her male counterparts earn £1.65. This is just the average, however. The median hourly difference in 2021 was £2.68. There are many reasons for these differences, including women being given lower paid roles. Women are also more likely to take on part-time roles or quit their line of work due to childcare responsibilities.

Thus, it negatively impacts women’s finances as they are earning less yet paying more for everyday items. This creates an unequal balance, which trickles into other parts of women’s lives. It makes it harder for women to save for deposits and obtain mortgages, while lower salaries mean borrowing and loans are often restricted.

Ultimately, it hurts female consumers. But what can we do to change this?

Avoiding the Pink Tax

We could just tell you to avoid pricey ‘women’s’ products, and buy the male-targeted alternative where possible, but there are many other things you can do to ensure you get the best price.

• Promote change

You don’t have to take to the streets and march to aid in campaigning (although if you do, more power to you!). Fighting against the pink tax in any way you can, does help. In 2016, a petition challenged retailer Boots for their sexist pricing. It received almost 45,000 signatures and forced Boots to review its prices. They actually changed the prices of some of their own brand products in light of this.

• Compare prices

Use price comparison websites before you shop to see where has the more affordable items. Compare the prices of items aimed at men and women, and if the only difference is the colour of the item, such as with razors, then get the male version. They work just as well and you skip out on the pink tax.

The same goes for shower gels, shampoos and conditioners. They may look a little different, smell a little different and be marketed differently, but ultimately, they do the same thing and have the same ingredients. Give the ‘male’ version a go.

• Check the ingredients

As mentioned, often the only different is colour or fragrance. Keep an open mind when it comes to fragrance. You may find you enjoy ‘male’ scents just as much, or you may not be able to tell much difference.

Check the back of the bottle, specifically the active ingredients. If the active ingredient is Vitamin C, for example, check and see if there’s a cheaper alternative in the men’s section. The ingredients are likely to be the same, despite the differing cost.

• Consumer pressure

As with the Boots petition mentioned above, consumer pressure can work. Social media platforms have pros and cons to them, but they can be a hugely impactful tool for change. Write to brands, tag them in posts, send them a tweet. You may feel like a small fish in a big pond – but if every fish in the pond is doing the same, they can’t ignore you! Together, we can fight the pink tax.

• Go for bargains

Opting for generic, own brand options is often better than a big fancy brand. Larger companies put more money into their pink tax marketing, trying desperately to persuade you to buy that body wash that costs more than the male alternative. Buying in bulk can also save you pennies.

• Negotiate

You’ll never know unless you try. When it comes to services that cost more for women than men – haircuts, vehicle repairs, receiving a monetary loan – try to negotiate. A third of women who negotiate get the outcome they want. This is compared to just a quarter of men.

The post The Pink Tax: Why women pay more for everyday essentials appeared first on MoneyMagpie.

With discounts running for two days ending tonight, Prime Day promises unbelievable deals on your favourite items, whether you are on the hunt for kitchenware, electricals or fashion items.

As with most sales, however, Prime Day attracts cyber criminals who want to take your hard-earned money. We see this with Black Friday and the Boxing Day sales – fraudsters look to take advantage of eager consumers who want to bag themselves a bargain.

In 2021, a staggering 2,300 fake Amazon websites were set up in the run up to Prime Day. Hackers wanted a piece of the £9.3 billion spent worldwide on this day. Luckily, cybersecurity experts NordVPN have provided us with the most common scams to look out for this Amazon Prime Day, and how to protect your cash.

• Missed packages
• Prize draws
• Fake websites
• Verifying your account
• Fake gift cards

Missed packages

You may have received a suspicious text message before, claiming you missed a delivery, even if you have not ordered anything. In the run up to Prime Day, hackers will use these messages as a method of getting their hands on your money.

The surge of online shopping in recent years as the result of covid-19 lockdowns has allowed scammers to refine their techniques further. In this scam, an email or text will be sent to the victim, providing an order number or a tracking link. Once this link is clicked, the hacker will ask for a payment to speed up delivery or claim you must pay a fee in order to receive your package.

This text or email could claim to be from Amazon or a courier such as Royal Mail, DPD or Hermes.

How to avoid this

This scam works well as most people order items online frequently. It causes doubt in the mind of buyers, or many think nothing of clicking on the link, assuming it is legitimate and in relation to an actual package they have ordered.

Check through the Amazon website or app before clicking on any links. You can track your order officially this way, and make sure everything is on track. Amazon will never ask you for extra payments or fees after your item has been dispatched. Do not engage with the text or email, as it is likely to be a scam.

Prize draws

In all the excitement of getting amazing bargains, hackers will use the potential to win extra prizes or even money to lure you in. In this scam, you may receive a link or an email stating you have won a prize. “Click the link to claim now!” may seem like an instruction you are tempted to follow, but resist.

It is likely a scam. When you click on the link, your device may be infected with malware or viruses. Your credentials could be stolen, and your bank details could be accessed if your device is hacked.

How to avoid this

Be aware that Amazon has not run any prize draws for many years. If you receive a message that seems too good to be true, it probably is. Don’t click on any links claiming you have won a prize – this is most certainly a scam.

Fake websites

You would be surprised at the lengths online hackers go to in order to steal your money. Replicas of the Amazon homepage are rife and can look identical to the real Amazon site. These are rife around Prime Day. If you try to buy something from these copycat websites, your bank details and personal information could be stolen.

How to avoid this

Visit the official Amazon website by typing in the exact domain name into your search bar – Amazon.co.uk. Many of the fake websites are very hard to distinguish from the actual site, and it is scary. The best way to check you are on the real site is to check the domain name is correct.

The website you visit should start with https in the domain name instead of http. The ‘s’ is a small difference, but shows the website is secure. You should also see a small padlock next to the web address.

Verifying your account

One of the most common ways hackers get your information is by sending fake texts and emails asking you to verify your identity or protect your account. This is a form of ‘phishing’ and will ask you to enter your log-in details.

Hackers may claim there has been an unrecognised log in attempt on your account and you need to enter your password to regain access to your account. If you do so, hackers will then have access to your account details and may buy items using your cards or even access your bank details and personal information.

How to avoid this

If you receive a text or email of this nature, do not click on any links. Click on the sender’s name to see their email address – it will likely be a random email unrelated to Amazon. Log onto your account yourself and check for any security alerts.

The emails or texts you receive may also contain very slight grammar and spelling errors, so look closely. It is better to be safe than sorry, so even if you think the email is genuine, do not click the links.

Fake gift cards

There is nothing more exciting than receiving a gift card, and hackers know this. With e-gift cards being a popular present, they can easily trick people into buying online gift cards. To do this, they impersonate family members or friends and ask people to reveal their unique card numbers.

These gift cards will then be redeemed by the hackers at your expense. They may also claim the gift card is not available for long, and you must act quickly. This puts pressure on victims and therefore they are more likely to respond.

How to avoid this

If you receive a message of this nature, verify with friends and family to see if it is legitimate. Speak to them in person or over the telephone to do this – do not respond to the email. Beware of any messages which pile on the pressure and urge you to act quickly.

So, if you are thinking of bagging a bargain this Amazon Prime Day, make sure you know what to look out for to protect your personal information and your money!

The post Amazon Prime Day: Avoid these scams appeared first on MoneyMagpie.

• Choosing a lawyer
• Finding the right court
• Deciding on the process
• Close financial accounts
• Don’t sell the house straight away
• Revise your will 
• Check your tax credits
• Increase your pension contributions
• Hire an IFA
• Don’t live with a new partner yet
• Protect your mental health

1. Choose the right lawyer

Ideally, choose a lawyer who is a ‘Resolution accredited specialist’. Not only will they have the expertise required, but Resolution’s code of practice promotes a constructive and non-confrontational approach to divorce. Going through it this way may be an effective way to save money for both parties.

You might not actually need a solicitor, either. If your marriage is straightforward and you can reach a financial agreement with your former spouse amicably, it’s easy to file for divorce online without paying for a solicitor. Your divorce costs will then only be the £550 to process the paperwork – not thousands of pounds in legal fees. If you’re filing, you can choose to ask your former spouse to pay the fee – you’ll need to tick this on the form. If you’re on benefits or a low income, you can apply for help to have the fee decreased or waived altogether.

If you have any argument about who gets what, definitely find a solicitor who can help. It could save you thousands of pounds.

2. Choose the right court if you have any overseas assets

If you or your spouse is a foreign national then always think carefully about which country’s court you use. Speak to your solicitors and decide which court would best suit your needs.

Even in the UK, there are regional differences. Always beware of rushing into proceedings when there is foreign property involved. Get the advice you need first, it could be crucial to saving money in a divorce.

3. Choose the right process

Court battles are not always inevitable and they’re certainly not desirable. Other dispute resolution models are available and could help you save money in a divorce. Consider mediation or collaborative law.

Not only are both cheaper than a court battle, they also offer a much more dignified approach and self-determination. This is a good option for parties who are still on good or reasonable terms. It also guarantees privacy as the proceedings are confidential. Most divorce lawyers will recommend you attempt mediation as court is more costly for them, too (it takes more time and doesn’t always get the best result they want).

4. Close the joint account/cancel joint credit cards

Believe it or not, the ‘misuse’ of joint accounts/credit cards by an opposing, soon to be ex-spouse is rarely taken into account when the court makes a division of assets official. It’s wise to mutually agree to close these accounts as soon as possible, this way they don’t become complications. This helps both parties when saving money in a divorce.

After seeking and receiving legal advice, agree a monthly contribution to expenses early on. Depending on whether you are the payer or payee, be careful not to establish a situation that will result in you spending more than you should. If you can’t reach an agreement about your finances, you can apply for a Financial Consent Order as part of the divorce process. You can do this yourself, but it’s a good idea to ask your solicitor to help you.

5. Don’t sell the marital home right away

Selling a home can take time and is a stressful situation in it’s own right. It can be worse if a reluctant party is in situ. Some couples agree on one person staying while the other moves into rented accommodation or goes to stay with family. It is more complicated when children are involved, too. However, if your former spouse is trying to force you out of the home before the divorce is settled, you can apply for Home Rights. This legally prevents them from kicking you out of the property until the divorce is settled.

Make sure your divorce settlement makes clear who gets what proportion of the sale of the home. This makes it very clear once you do sell up what you can expect from the proceeds of the property, helping you to plan your newly-single future.

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6. Sever any joint tenancies and revise your will

If your property is in joint names it passes automatically to your partner upon death – as do any other assets you have. Create a new will that stipulates your new beneficiaries. If your divorce is dragging on, you can apply to change your house deeds from Joint Tenants to Tenants-in-Common – but this can be costly and changes your mortgage terms. Try to apply Home Rights in the first instance and make sure your divorce agreement stipulates who owns what in terms of the property. Your new will can stipulate who will inherit your portion of the property, but if you die before your divorce is settled your former spouse could contest it.

Also remember (where appropriate) to change details regarding benefits, life policies and pensions that may involve your partner. Always seek financial advice before cancelling joint life policies/endowments. It may be expensive to obtain new cover. It also may be unnecessary if your policy is assigned to a mortgage that you are retaining.

7. Don’t forget child benefit/tax credits

The receipt of child benefit may not make a huge financial difference to some. However, if you have a shared care arrangement for one or more children, the recipient of the child benefit will ultimately be the person who the child remains with. That person may also be entitled to financial maintenance from the other parent until the child turns 18.

If you are unemployed or on a lower income and have a child in your care, you may be able to claim child tax credits on separation. You can read more about tax credits here.

8. Increase your pension contributions

If you don’t have a large pension pot, consider increasing your pension contributions. Not only does this help protect your retirement, it can reduce your income for the purposes of a financial settlement.

That said, if you’re the higher earner in your relationship, be very careful about this. Your spouse can apply to have up to half of your pension transferred to their own as part of a divorce settlement.

9. Instruct an IFA

Hire an Independent Financial Adviser (IFA) to help you navigate the tricky business of things like shared properties, pensions, and income considerations. Unbiased is a great, completely independent platform for finding IFAs and lawyers.

10. Don’t live with a new partner until the divorce is settled

Your new partner’s income could be taken into account during your settlement, meaning you could end up getting much less. You would also lose your home rights: this affects you if you’re on a low income. If you’re living elsewhere and paying rent, but you own another property you don’t live in (i.e., the marital home) and it’s not on the market, you won’t get your state benefits.

Look after your mental health

Going through a divorce is a stressful, often heartbreaking, time for many. While saving money in a divorce situation should always be a priority, never forget to look after yourself. If you’re finding it overwhelming then help is always available. Samaritans offer a 24-hour divorce support line on 0808 164 0123.

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