Bank customers have been warned never to respond to a particular type of text message as fraudsters increasingly impersonate trusted financial institutions to steal people's savings. The scam often begins with a seemingly urgent message claiming a new payment has been set up on a person's account.
Recipients may be asked to reply if they do not recognise the transaction or given a telephone number to call. However, customers are being urged not to respond and instead contact their bank independently using a trusted number.
How the scam works
Elaine Ross, head of fraud analytics at Nationwide Building Society, said scammers often use large payments and unfamiliar names to frighten victims into taking immediate action. She said: "The value will be a high value, and it will be a person the victim doesn’t know."
Some fraudulent messages ask recipients to reply "Y" if they recognise the supposed payment or "N" if they do not. Ms Ross warned: "As soon as you press 'N,' they will call you back and say they are from Nationwide’s security team or the police. That puts people into a panic."
Rising losses from impersonation scams
Once a victim is on the phone, scammers can attempt to convince them that their account has been compromised. They may then tell customers to transfer their savings into a supposedly "safe" account or even ask them to hand over their bank cards.
The warning comes as impersonation scams continue to cost Britons millions of pounds. Figures from Lloyds show the amount stolen from its customers by criminals pretending to represent trusted organisations rose by 10% in the year to the end of June. The average amount lost also increased by 10% to £3,516.
Santander, meanwhile, says more than £3million has been stolen from its customers through bank impersonation scams so far this year, with victims losing an average of £6,000.
How to protect yourself
Chris Ainsley, head of fraud risk management at Santander UK, said: "If something doesn’t look or sound right, trust your instincts. Stop, check and contact your bank directly using a trusted number."
Customers concerned about a message can use the telephone number printed on the back of their bank card rather than any contact details included in the suspicious text. People who become suspicious during a phone call are also advised to hang up and contact their bank themselves.
