As someone who is on a low income, the topic of money can naturally create a lot of stress and anxiety in your daily life.
While seeking financial advice can be useful, there are many people who don’t have your best interests at heart. That’s why it’s important to be careful about who you get advice from.
We want to share some of the top things to look out for so that you don’t fall victim to scams, or bad advice that will leave you worse off financially.
The Chase Banking Glitch - A Lesson That Money Doesn’t Come For Free
In September 2024, there was a glitch with Chase Bank in America, which resulted in users mistakenly being shown they had tens of thousands of dollars in their accounts.
Word about the glitch soon spread on TikTok. Many users saw this as a free payday, heading down to the cash machine to withdraw the balance before the error could be fixed by Chase.
However, now that the error has been resolved, Chase Bank is looking to recover the money, meaning those who withdrew money that didn’t belong to them now need to pay the balance back. For some, this means they now owe tens of thousands of dollars.
Under the American legal system, people can be jailed for up to 10 years for defrauding their bank in such a way, according to Market Watch.
Even though this story happened outside of the UK, it’s a timely reminder that where you take advice about money, including how to make money requires careful consideration. That’s because there can be consequences that ultimately leave you in a much worse position if you make the wrong decision.
Who Should You Ask For Financial Advice?
For anyone to be able to provide financial advice in the UK, they must be regulated by the Financial Conduct Authority (FCA). If you are struggling to manage your money, you may be able to ask your bank for advice. You can also contact Citizens Advice.
Since £15bn of benefits go unclaimed every year in the UK, we’d also encourage you to check you are claiming any money you may be entitled to.
A financial adviser can also help you plan for your future, including important life events such as buying a home or starting a family. Since there is a charge for financial advice of this kind, it’s not something that is open to everyone, but it’s good to know there is help available at different stages depending on where you are at.
Whoever you approach for financial advice, they ideally should be independent so that their advice isn’t biased towards certain products or services.
Why is Getting Financial Advice Off Social Media a Risk?
As we saw with the Chase Bank situation, people can encourage you to take risky actions on social media. However, if things go wrong such as if you lose money or even face legal consequences, there is sadly no one to hold to account.
Unfortunately, it can be difficult to trust the internet including the content you may see on social media. Unless the content comes from a trusted source (i.e. it’s FCA regulated), you have no recourse if you end up being scammed or losing money.
So although it’s tempting to indulge in any of these ‘get rich quick’ schemes or similar so-called money hacks, there is usually a catch. That’s why anything that seems too good to be true is always best avoided and, better still, reported.
Keeping Your Money Safe Online - A Top Checklist
When seeking advice about money online, ensure the company is FCA regulated. This should be stated in their website terms or website footer
Look out for a padlock in the toolbar when shopping online to show that your personal details are safe
Be careful when opening emails and check that the sender's address is legit before clicking through to the website - if in doubt contact your bank
Don't click adverts on websites, especially those which seem suspicious or fake
Don't share your passwords with anyone and ensure you regularly change your passwords
Be aware of the different types of financial scams that exist, including romance fraud
Read more: Avoid These 5 Financial Traps In 2024
Fair for You - How Can We Help?
At Fair for You, we help UK households on a low income to afford the things they need for their home and family.
As a non-profit lender, we’re different from other lenders because we’re on your side. Discover our products by browsing our website, where you’ll find a range of appliances and shopping cards available on our flexible repayment system.
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