Lloyds Bank has issued an urgent security alert to all its customers after detecting a worrying surge in sophisticated impersonation scams that have already cost victims hundreds of pounds each.
The banking giant revealed that fraudsters are using increasingly convincing tactics, posing as bank security staff to trick customers into handing over their savings. On average, victims are losing £399 per scam, though some losses run into thousands of pounds.
How the Scam Works
Criminals are deploying a double-whammy approach that's catching even the most vigilant customers off guard. The scam typically begins with a fake text message that appears to be from Lloyds Bank, warning about suspicious activity on the account.
"The text looks completely genuine, using official branding and language that mimics the bank's real security alerts," explained a Lloyds fraud specialist. "Once the customer responds, they receive an immediate phone call from someone claiming to be from the bank's security team."
The Convincing Lie
During the phone call, the fraudster:
- Confirms the customer's personal details to appear legitimate
- Claims to be preventing fraudulent activity
- Persuades the customer to transfer money to a "safe account"
- Stays on the line throughout the transaction
"What makes this particularly dangerous is that the scammer remains on the phone throughout the entire process, guiding the customer through the banking app and providing reassurance," the specialist added.
Who's Most at Risk?
Analysis by Lloyds shows that younger adults aged 25-34 are actually the most likely to fall victim to these scams, contrary to the common assumption that older people are more vulnerable. This demographic appears more susceptible because they're comfortable with digital banking but may not be as familiar with security protocols.
However, the financial impact tends to be more severe for older victims, who often have larger savings at stake.
Protect Yourself: Essential Security Tips
Lloyds Bank emphasises that they will NEVER ask customers to:
- Transfer money to a different account for security reasons
- Withdraw cash to hand over to a courier
- Disable security features on their banking app
- Share their full PIN, password, or passcode
If you receive an unexpected call claiming to be from your bank, always hang up and call back using a verified number from their official website or the back of your card.
The bank advises customers to be particularly wary of calls that follow shortly after a text message about suspicious activity, as this is a hallmark of the current scam wave.
With fraudsters becoming increasingly sophisticated, staying informed and vigilant is your best defence against these devastating financial crimes.
