How brokers can help clients avoid green scams
September 2024
As the effects of climate change become more evident, consumers are increasingly motivated to adopt sustainable practices, with nine in 10 homeowners saying sustainability and energy efficiency is important to them[1]. And with the cost of gas and electricity remaining high, many are looking to make improvements to their homes to cut energy bills.
This growing focus on energy efficiency has seen the number of green housing products on the market grow exponentially, with the UK green mortgage market projected to reach £1.2 billion by 2025[2]. But as the market has grown, so has the number of scammers trying to take advantage of customers by offering fake deals on solar panels, heat pumps and other renewable energy sources.
2022 data from Action Fraud has shown there to be 450 reports linked to fraudulent energy rebates, or instances where fraudsters have referred to solar panels and other types of energy efficient upgrades. This was an increase of 50% from the year prior[3].
As a key point of contact in the homeownership process, brokers must be aware of these scams and ensure their clients are well-informed on how they can avoid them.
Common scam tactics
Unsolicited contact
Scammers commonly reach out to consumers via phone, text, post and email. According to Virgin Media O2, their fraud prevention service stopped more than 89 million scam texts reaching customers in 2023[4].
Fraudsters often pretend to be representatives of reputable price comparison companies or energy providers, offering exclusive deals or discounts.
False claims about solar panels
The UK has seen a staggering 4,862% rise in number of homes with solar panels since 2010 [5]. Inevitably, this growing interest in solar panels has led to an increase in scam activity. Scammers often target vulnerable homeowners offering "free health checks" or unnecessary products while posing as legitimate solar panel companies. They also typically target consumers who have recently shown interest in these products.
Tips for avoiding green scams
Brokers often serve as the 'face' of the mortgage process for clients, putting them in an ideal position to highlight these risks and actively educate clients on how to avoid becoming victims of scams. Brokers can play their part in protecting clients and their money by helping them avoid green scams, ensuring they:
- Conduct thorough research
Before purchasing any green products, clients should check company websites, read reviews, ask for references and verify company details using external sources of information.
- Verify the caller’s identity:
Suggest clients always verify the identity of the caller by contacting the company directly using official contact details.
- Look for certified schemes
When looking for a trader to use, clients should check certified schemes that traders recommend, like Trustmark (the Government’s endorsed quality scheme).
- Stay alert to paperwork scams
Clients should be wary when companies offer to complete applications or paperwork for government grants which are potentially fake. Contacting the local council or official government grant provider is the best way for your clients to confirm any processes or updates to different schemes.
- Get written quotes and a contract
Homeowners should secure quotes from multiple contractors to help them decide if they are getting a fair price. Once decided, clients should always get a written contract before giving the go-ahead on any work.
- Use a secure payment method
Credit cards can offer more protection than debit cards, as they can provide chargebacks for disputes and fraud, often making it easier to recover money. For any large-scale home improvement works, homeowners should check if they can pay in stages and avoid paying the full amount up-front where possible.
By being aware of these scams and suggesting the above steps to consumers, brokers can give their clients the best possible head start in protecting themselves against green scams, ensuring a safer and stress-free mortgage journey.
