How brokers can help clients avoid green scams
July 2023
As the realities of climate change become ever clearer, consumers are increasingly seeking to make sustainable changes, whether it’s to the food they eat, how they heat their homes, or how much energy they use. And with the cost of gas and electricity remaining high, many are looking to the improvements they can make to their homes to cut energy bills.
While this growing focus on energy efficiency has seen the number of green housing products on the market grow exponentially, it has also led to a rise in fraudulent activity. Criminals are now preying on unsuspecting homeowners, scamming them into fake deals on sustainable home improvements, such as heat pumps, solar panels, and other renewable energy technologies.
As a critical touchpoint in the homeownership journey, it’s important that brokers are aware of these scams, and keep clients up to date and informed on how they can avoid them.
Green scams on the rise
According to data from Action Fraud, there was a 50% rise in the number of these ‘green’ scams during 2022 against the previous year, with the over-60s being the most frequently targeted group.
Criminals will often contact their targets via phone, text, or email, with some pretending to be from price comparison websites offering ‘special deals and discounts’. Others reference fake government grants which do not exist, or abuse those that do. For example, one scam saw criminals invite customers to apply for the £400 energy grant rolled out by the government as a means to steal sensitive personal and financial information via text. This was particularly common during the winter amidst freezing temperatures and sky-high energy bills.
These criminals also use publicly held information to target people who already have sustainable home improvements in place (such as solar panels), to persuade them into purchasing batteries or spray foam insulation, despite this often not being recommended for most homes.
Criminals tend to have several methods for enticing their victims, such as:
- offering free health checks for solar panels to hook people in;
- attempting to sell voltage optimisers or falsely claiming that inverters need changing;
- and claiming that solar panels are a potential fire risk or that a fire switch replacement is needed because the law has changed (both of which are untrue).
How can brokers help to spot criminal activity?
Brokers are often the ‘face’ of the mortgage journey for customers, meaning they are in an excellent position to raise these risks and actively educate clients on how to avoid falling victim to a scam. At Coventry for intermediaries, we have outlined several ways to avoid these scams, which could act as useful tips that brokers could share with their clients, including:
- Performing own research – before purchasing any green products, individuals should check company websites, read reviews, ask for references and verify company details using external sources of information.
- Checking certified schemes – when looking for a trader to use, customers should check certified schemes that recommend traders, like Trustmark (the Government’s endorsed quality scheme).
- Get written quotes and a contract – homeowners should secure quotes from at least three different contractors to help them decide if they are getting a fair price. Once decided, customers should always get a written contract before giving a contractor the go-ahead on any work.
- Staying alert – customers should be wary when companies offer to complete applications or paperwork for government grants which are potentially fake. It is also important for individuals to check independently for any available financial support through local government agencies.
- Using a secure payment method - credit cards offer the most protection, followed by PayPal or debit card. If paying for large home improvement works, homeowners should check if they can pay in stages to avoid paying for costs up-front where possible.
By sharing information on common scam tactics, warning signs and best practices for identifying the legitimacy of eco-friendly products, brokers can empower clients to make informed decisions while safeguarding their financial interests. Perhaps even more importantly though, they can give their clients the confidence to make important efficiency changes to their property as we all strive on the path towards net zero.
For more information on how your clients can make sustainable changes to their home, please visit our information page on sustainable living.
