Cost of Living Payment Phishing Scams by SMS
Text messages impersonating government departments tell recipients they are eligible for a cost of living payment and must click a link to confirm bank details, which are then stolen.
Part of: Cost of Living Payment Phishing Scam
Last reviewed: 5 July 2026
Government cost of living payments, such as those issued in the UK by the Department for Work and Pensions, are typically paid automatically into the bank account already on file for an existing benefit claim, with no application or link-click required. SMS is a favoured channel for this scam because the short format and urgent tone of a text message discourage the careful reading that might expose a phishing attempt.
How this scam works on SMS
A text arrives stating the recipient is eligible for a cost of living payment and must click a link to 'confirm' or 'update' bank details to receive it, directing to a fake page styled to resemble the real government benefits portal. Because these payments are genuinely newsworthy and widely discussed, especially around each new round of payments, recipients are primed to expect a message about eligibility, making the fake text feel timely and plausible.
The fake page collects bank account details, National Insurance or Social Security numbers, and sometimes full login credentials for an existing benefits account, which are used either to redirect the recipient's real, already-qualifying payment to the scammer's account or for broader identity fraud, exploiting the fact that most genuine recipients are already known to the paying agency and require no new bank detail submission at all.
Common red flags
- A text claiming you must click a link to 'confirm' bank details to receive a cost of living payment
- Genuine cost of living payments to existing benefit recipients are usually paid automatically without any application
- A link leading to a page that does not match the real government agency's official domain
- Urgency claiming the payment will be missed unless you act within hours
- Requests for a benefits account login and password sent via a text link
- Messages timed to coincide with real news coverage of a genuine payment round, exploiting public awareness
How to protect yourself
- Remember that cost of living payments for existing benefit recipients are usually paid automatically, with no link-click confirmation needed
- Never enter bank details or login credentials through a link received by text
- Check your eligibility and payment status by logging into your benefits account directly through the official government website
- Verify any claimed issue by calling the relevant agency's official phone number, not one provided in the text
- Delete and report suspicious texts rather than clicking any links
- Check with family members receiving related benefits, since these texts are often sent in bulk across a target list
How to report it
- Forward the suspicious text to 7726 to report it to your mobile carrier
- Report to Action Fraud (UK) at actionfraud.police.uk or the FTC at reportfraud.ftc.gov (US)
- Report to the relevant government agency's fraud or phishing reporting address
- Contact your bank immediately if you have already entered banking details
Frequently asked questions
Do I need to apply for a cost of living payment if I already receive benefits?
In most schemes, existing benefit recipients are paid automatically without a separate application or link-click confirmation, so treat any text asking you to 'confirm' details as suspicious.
How can I check if I am eligible for a real payment?
Log into your benefits account directly through the official government website, typed in yourself, or call the agency's published phone number rather than clicking any link in a text.