Debt Scams to Watch Out For in 2026

Debt scams are becoming more sophisticated, with millions of pounds being stolen across the UK in a matter of months. Fraudsters will hack your personal accounts, or use other illegal methods, to attack you when you’re most vulnerable (e.g. after a divorce or loss of a loved one, or even among health issues and money worries).

That’s why being aware of the signs is so important. We’ve broken down some of the most common debt scams happening in 2026, including the current tactics scammers are using and how to protect yourself.

Debt Scams: Key Statistics

• Recent UK Finance figures show that over £629 million was stolen by scammers in the first half of 2025.
• According to Rest Less, people lose £220 each on average through loan fee fraud.
• Rest Less states the Financial Conduct Authority (FCA) received almost 5,000 fake FCA scam reports in the first half of 2025.

What is a Debt Scam?

A debt scam is when fraudsters pretend to be a legitimate organisation, such as a financial authority, debt collection agency, lender or charity to pressure you into paying money you don’t owe or sharing personal information.

They will often try to gain your trust by finding out your name, scare you by making the payments sound urgent, threaten legal action, or make promises that seem too good to be true.

Financial Conduct Authority (FCA) Impersonation Scams

The Financial Conduct Authority (FCA) is an independent organisation who regulate financial services firms in the UK, setting standards for companies to meet and holding them accountable if they don’t.

Recently, scammers have been pretending to be the FCA and asking people to pay them money or give out their personal information (e.g. bank account PINs and passwords).

One of the most common FCA scams at the moment is fraudsters claiming that a crypto wallet was opened illegally in their victim’s name, and they’ve been able to recover the money from it.

Another scam involves loan scam victims being told that ‘the FCA’ can help them get back the money they’ve lost. The scammer will ask you to send them money in order to do this, which pushes you further into debt.

“We will never ask you to transfer money to us, or for sensitive information such as account PINs and passwords. If in doubt, always check.” ~ Steve Smart, Joint Executive Director of Enforcement & Market Oversight at the FCA

Debt Collection Scams

Scammers are posing as debt collection agencies (legitimate companies hired to collect overdue accounts) to get money out of vulnerable people. They will often get your information without consent, such as your name, to gain your trust. 

Some signs of debt collection scams include:

• Requesting instant payment through untraceable methods, e.g. cash, pre-paid gift cards, wire transfers (an electronic method of sending money directly from one bank account to another) or peer-to-peer payment apps (such as PayPal or Monzo)
• Giving you separate bank details to the ones you usually pay into
• Using false claims & threats to make you pay the money quickly
• Refusing to give you any information about the creditor they ‘represent’ – a legitimate company will usually tell you if it has instructed a debt collector
• You haven’t heard of the creditor the scammer is claiming to be and you cannot contact them
• Threats of criminal charges if you refuse to pay – real debt collection companies are not allowed to do this
• Using email addresses that end in @gmail.com instead of a company name 

One of the most common debt collection scams in 2026 involves fraudsters pretending to be energy suppliers who’ve gone bust over recent years and asking them to pay fake outstanding balances on the victim’s account.

Loan Fee Fraud

Another common tactic involves fake loan providers who’ll tell you your loan is approved but ask you to pay an upfront fee before the loan amount can be released. They take this payment, but never give you the loan.

How to protect yourself from loan fee fraud:

• Don’t click on suspicious links offering loans and NEVER scan QR codes
• Don’t make payments to ‘lenders’ before being given a loan
• Always check the FCA register to check if the ‘company’ you’re dealing with is regulated – avoid them if they are not

Another scam of this type to look out for is loan sharks – fake loan providers who commonly target people that need to borrow money quickly and cannot find another lender. They often charge high, illegal interest rates and use threats to get money out of you. But there is help available. Not-for-profit organisation, Stop Loan Sharks, launched a new WhatsApp service in October of 2025 to make it easy for victims to get in touch for free support. They also have:

• A 24/7 confidential helpline: 0300 555 2222
• A mobile number you can text: 07860 022116
• An email address: reportaloanshark@stoploansharks.gov.uk
• A contact form on their website: https://www.stoploansharks.co.uk/contact-us/  
• A live chat facility on their website: https://www.stoploansharks.co.uk/ (Available Monday-Friday, 9am-5pm)
• BSL resources on their YouTube channel: For those who are deaf or hard of hearing, they can provide a BSL interpreter and they also have BSL resources on YouTube.

Tip: Always seek online debt advice from trusted, FCA-authorised organisations before agreeing to any loan or upfront payment.

Debt Charity Impersonation Scams (Clone Firms)

Debt fraudsters are also impersonating debt charities, such as Citizens Advice, StepChange and National Debtline, to scam people into giving out sensitive information (bank account details, national insurance numbers, etc.).

They might use incorrect, but very similar, names to real debt charities (which is why they’re known as ‘clone firms’) in order to make the scam look legitimate upon first glance. For example, ‘Step to Change’, ‘Step Changing’ or ‘National Debt Helpline’. Always type the name into the Charity Commission website to check if they are a registered charity.

Remember: Real debt charities will never pressure you for immediate payment or ask for sensitive information without proper verification.

Have You Fallen Into a Debt Scammer’s Trap?

Taking the first step and getting advice is often the hardest part of solving your money worries, but if you’ve fallen into a debt scammer’s trap, you’re not alone. Over 7 million people fell victim to debt scams between October 2024 and October 2025.

Contact Angel Advance to receive free*, confidential debt advice from our friendly debt advisors today. Our approachable team is available to chat over the phone, via email, through WhatsApp or in a webchat.

If you don’t want to talk to us on the phone, via email or webchat, we also have a free online debt advice tool which only takes 10-15 minutes to complete. View which debt solutions you’re eligible for instantly, at any time – day or night.

*Our advice is free, but if you sign up for a debt solution, a fee will apply for some solutions.

Debt Scams: FAQs