Been asked to pay a fee in advance for a purchase, service or experience? In some cases, such as holidays, mortgages or professional services, this is completely legit – and is a standard, lawful practice.
However, when you’re asked to pay up front costs for a prize, a loan, a job or an inheritance sum (and usually a large sum of money), alarm bells should start ringing, no matter how tempting the promise.
With over 421,000 cases reported to the National Fraud Database in the UK in 2024, it is imperative to recognise the signs of these scams and exercise caution when pursuing goods or services online.
That’s why we’ve put together this helpful guide – alerting you to the red flags to watch out for, providing information on how to report advance fee scams and tips on what to do if you’ve been scammed, including seeking legal support.
What is an Advance Fee Scam?
An advance fee scam is when a person is persuaded to pay an upfront fee or deposit before receiving the service, product or experience they are purchasing. Common types of advance fee schemes involve:
- Prizes: Sweepstakes, prize draw funds or lotteries, for example, are commonly used in advance fee fraud. Scammers will tell you that you’ve won a prize, but you must pay taxes or specific fees on the prize before you can claim your winnings.
- Loans: Low-interest loans can be offered with the catch that an upfront fee will have to be paid before the loan application can be processed, at which point the scammers will take your money.
- Inheritance: A fraudster may claim that you are the beneficiary of a sum of inheritance, but the legal fees must be paid before you can have access to the money.
Advance fee scams are becoming more common and pose a huge threat to those looking for goods or services online.
These scams operate on the premise of convincing victims to pay an upfront fee in exchange for promised rewards, holidays or services that do not materialise.
Furthermore, even those who are not necessarily seeking goods or services can fall victim to advance fee fraud, as scammers often target unsuspecting internet users with enticing offers such as gold, jewellery or overseas lotteries.
CEL Solicitors recently recovered £17,000 from an advance fee scam, where our client was falsely promised landscaping services for his property.
What Are the Laws on Advance Fee Scams in the UK?
Advance fee scams are treated as serious crimes under the Fraud Act 2006. In most cases, they fall under Fraud by False Representation – this is when someone deliberately lies or misleads you to get you to pay money up front.
Advance fee scammers can face up to 10 years in prison, suffer multiple types of fines, and may have their assets seized.
The Financial Conduct Authority (FCA) may get involved when scams relate to loans, investments, or other regulated financial products. Even if the fraudster is overseas, the law can still apply when people in the UK are affected.
Tips to Protect Yourself from an Advance Fee Scam
So, how can you recognise a cash advance scheme and make sure you don’t fall for it? Here’s our list of the best tips for staying safe from payment-in-advance fraud:
Exercise caution with upfront payments
First things first, be extremely cautious if anyone asks you for upfront payments, especially if:
- The requests are for upfront payments for goods or services you have not solicited,
- The requests are demanding large payments before receiving promised rewards or services.
- Something feels off about the communications (e.g. poor spelling, inconsistencies, urgent/aggressive language).
Stay sceptical of unexpected ‘wins’
While it can be exciting to hear you’ve won something unexpectedly – especially if it’s a lot of money – be particularly cautious if:
- The offer seems too good to be true.
- You are told that you have won a competition or lottery draw that you did not enter.
- You’re not given the full details of your win – and they’ll be revealed to you upon payment.
Remain vigilant on social media
Advance fee scams often begin on social media platforms such as Facebook, Instagram, or LinkedIn, where fraudsters will advertise non-existent services or job opportunities. Keep an eye out for:
- Odd or inconsistent ads, posts or comments that don’t look legitimate (such as using poor grammar, misspellings and statements that seem too good to be true);
- Reviews or any other evidence of an online presence of the company that’s trying to entice you;
- Interactions – such as likes, comments, reshares and more – to verify they have engagement on their social platforms.
Verify accounts and email addresses
As well as researching into the company and finding supporting social platforms or websites, the accounts they are using to communicate with you can be analysed, too:
- Verify the legitimacy of email addresses, ensuring that a business address is used rather than a generic one, such as Gmail or Yahoo.
- Look out for subtle variations or inconsistencies in email addresses, as this may indicate fraudulent activity.
- Fake payment links might be used to harvest your data, so check for secure, legitimate websites.
I’ve Been Scammed by an Advance Fee Scam – What Do I Do?
If you suspect you’ve been targeted for advance fee fraud, there are steps you can take to protect yourself and increase your chances of recovering your money.
1. Document the scam
As soon as you realise you’ve been targeted by an advance fee scam, gather and record as many details as possible.
Take screenshots of any messages, emails or websites where the scammer asked for an upfront payment – whether it was described as a processing charge, verification fee or deposit for a promised reward, loan or service.
Other types of evidence you can collect include saving any email headers, URLs, payment details or contact information linked to the scam. If you shared personal or financial details, make a note of exactly what you provided and when.
The more evidence you collect, the stronger your case will be for investigations, reporting or potential recovery of funds.
2. Report the scam
Before you can make a legal claim for an advance fee scam, you’ll need to officially report the scam to the necessary channels.
Ensure your bank account is secure – get in touch with your bank and let them know you believe you have been scammed. They can put certain security protocols on your card and report any suspicious transactions.
Next, you should also report the scam to Action Fraud – the UK’s national fraud reporting centre. Once you’ve done this, you should receive a crime reference number, which is important for your recovery and legal claims.
If the cash advance scammer is impersonating an existing company, be sure to report this fraudulent behaviour to the company itself – they can then block the email address and IP address to ensure they can’t trick anyone else in the same way.
3. Make a claim
The next part in the process is to make a legal claim for the advance fee fraud compensation you deserve. This is where CEL Solicitors can help.
Payment in advance fraud can be incredibly distressing. Not only have you been told you’ve won a significant amount of money – whether that’s through lottery winnings, inheritance or other prizes – but you’ve then been scammed to pay up front to reveal those winnings, leaving you with less money than you began with. It’s emotionally and financially unjust – and you deserve the compensation you’re entitled to.
Making an advance fee fraud claim is easy. Simply start by calling 0333 305 4982 or completing an online form, and our expert team of fraud and scam solicitors will help determine whether your case is strong enough to recover your money.
Our professional team operates on a no-win, no-fee basis – meaning you won’t pay a penny unless your case is successful, leaving you free of any further financial stress.
Make your advance fee scam claim today with trusted solicitors to recover the money you’re entitled to.