Impersonation scams, where fraudsters pose as trusted entities like banks, HMRC, or the police, are on the rise, with Lloyds Bank reporting a 10% increase in stolen funds from its customers in the year to the end of June compared to the previous 12 months.
The scam often begins with a text message claiming a new payment has been set up on your account, urging you to call a provided number if you don't recognise it. The caller then claims your account is compromised and asks for details, or directs you to transfer savings to a "safe account" or hand over your debit card for replacement.
Rising Losses and Tactics
While the number of Lloyds customers reporting scams fell by 3% this year, the average sum taken rose by 10% to £3,516. Santander reports that more than £3m has been stolen from its customers through bank impersonation scams so far this year, with an average loss of £6,000.
Scammers send messages randomly, so they may claim to be from a company you don't use, but including your bank's name can stop you in your tracks. Elaine Ross, head of fraud analytics at Nationwide building society, notes that texts often mention high-value payments to unknown recipients, prompting victims to reply 'N' if they didn't authorise it. "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," she says.
Protecting Yourself
Ignore any message from a mobile phone number that isn't your bank. Chris Ainsley, head of fraud risk management at Santander UK, advises: "If something doesn't look or sound right, trust your instincts. Stop, check and contact your bank directly using a trusted number."
Use the number on the back of your card to contact your bank if concerned, and hang up and call back if you become suspicious during a call. Ross says Nationwide encourages customers to verify calls, adding that they "would absolutely encourage them to do that" if worried. Check what anti-fraud tools your bank offers; Nationwide's app includes a "call checker" to verify genuine calls.
