Bank scams are a growing concern for individuals and families across the UK.
Fraudsters are becoming increasingly sophisticated, using tactics to deceive people into handing over sensitive information or transferring money.
According to Santander UK, more than £2 million was lost to authorised push payment scams – where a criminal encourages you to transfer money from your account into another – during the 2024 festive period alone. Additionally, UK Finance reported that over £570 million was stolen in payment fraud during the first half of 2024, which is a clear sign of the ongoing threat facing UK consumers.
The emotional and financial toll of falling victim to a banking scam can be devastating. That’s why it’s more important than ever to understand how both offline and online bank scams work, how to identify them, and, crucially, what steps you can take to protect yourself or recover if you’ve already been targeted.
How Do Bank Scams Work?
In the context of banking, fraud and scams usually involve criminals impersonating banks, government agencies or other trusted organisations to gain access to your money or personal data. These scams often rely on creating a false sense of urgency, which pressures the victim into acting without thinking.
Bank fraud can happen anywhere, but it’s usually through one of these methods:
Telephone Impersonation
This is when someone calls from an unknown number, pretending to be a legitimate bank or financial institution, and persuades you to reveal sensitive banking information.
Fake Emails
Impersonators will contact you from an unknown (and likely spam-looking) email address, conveying urgency for you to act now – whether that be to send money or reveal sensitive data.
Cash Points
A small recording device can be placed on an ATM, allowing scammers to clone your card, or hidden cameras may record your PIN code as you enter it.
Internet/online banking fraud
Online banking scams can refer to many avenues, such as social media posts, advertisements and computer viruses.
Once the scammers have the information they need, they can steal money directly from your account or use your identity for further fraud.
The Different Types of Bank Scams
Understanding the various forms of offline and online bank scams can help you avoid becoming a target. Here are the most common types:
Phishing Scams
Phishing involves scammers sending fake emails that appear to come from a legitimate source, such as your bank. These messages often include a link to a fake website where victims are asked to enter their login details or personal information.
Phishing is one of the most common financial scams – for example, by the end of 2024, the number of phishing scams reported to the National Cyber Security Centre (NCSC) stood at a staggering 900 million, according to Kaspersky.
How to avoid: Look out for misspellings in their messaging, brand inconsistencies, urgent or even aggressive language, and be sure to always check the sender’s email address, as that’s usually the biggest tell.
Vishing (Voice Phishing)
Vishing is when a scammer calls you on the telephone pretending to be from your bank. They may claim there’s an urgent issue with your account, and ask for your security information, passwords, or even prompt you to move your money to a “safe account”.
The urgency involved in telephone bank scams attempts to force the victim to act quickly without thinking, and reveal the sensitive information the criminals are searching for.
How to avoid: Take a breath and be sure to stop, challenge and protect yourself. Verify their legitimacy before making any decisions, and if you’re not sure, hang up and contact your bank to alert them to the vishing attempt.
Smishing (SMS Phishing)
Smishing uses text messages instead of emails. These texts may include a link to a fraudulent site or ask you to call a number that connects you to the scammer, all under the guise of a bank alert or transaction verification.
The messages may also include a fraudulent link or attachment, which, by clicking on them, could open a fake site designed to harvest your data or install malicious software on your device.
How to avoid: If the message comes from an unknown, random number, it’s a safe bet that it’s an online bank scam. If in doubt, ignore it and call your bank to verify whether it was them attempting to contact you.
Bank Impersonation Scams
As mentioned above, scammers can create fake websites that mimic legitimate banking portals. Unsuspecting users then enter their details, thinking they are logging into their real bank account.
How to avoid: Be cautious of any websites that aren’t secure (e.g. they don’t start with https:// or have the padlock in the website address bar) or flash up a warning sign before entering. Look at the URL, too, and check for misspellings or for anything that seems off.
Card Skimming and Cloning
Card skimming involves scammers planting hidden devices on ATMs or payment terminals that are designed to capture card details. Criminals then clone these cards to make unauthorised transactions.
Fraudsters may also install hidden cameras to record you inputting your PIN, meaning that if they can get their hands on your card, they have access to your bank account.
How to avoid: Make sure you cover the keypad when entering your PIN to hide it from any hidden cameras. If anything feels odd or unusual about the cash point, use another one just to be safe.
Fake Charity Scams
During a crisis or major event, it’s common for scammers to pose as charities and ask for donations. This can be offline – for example, in a public setting like walking down the street or via telephone or through online bank fraud, such as phishing, social media or advertisements.
These appeals can be very convincing, using emotional language and official-looking branding to deceive people.
How to avoid: Never give out sensitive banking information to someone claiming to be from a charity. If in doubt, but you want to donate, you can research the charity yourself and donate in your own time instead.
To gain a deeper understanding of various bank scams, CEL Solicitors has written a range of guides focusing on specific scams targeting customers of Santander, Revolut, Monzo, Barclays, and Halifax. These guides provide valuable insights on how to identify, avoid, and recover from these schemes.
How to Protect Yourself from Banking Scams
We understand how frustrating and distressing it can be to deal with scammers. At CEL Solicitors, we’re committed to empowering you with the right information and tools to stay safe.
Set Secure Passwords
Use strong, unique passwords for your online banking and other financial accounts. Consider using a password manager to securely store and manage your credentials.
Also, make sure your passwords are not the same across your various accounts, as once a hacker has access to one password, they could use it to hack into the rest of your accounts.
Download Mobile Banking Apps from Secure Platforms
Only download apps from trusted platforms like the Google Play Store or Apple App Store. Avoid third-party websites that might host counterfeit versions.
If you’ve been prompted to download an app through a spam email, text message or by telephone, research it first to make sure it’s legit, as it could be a banking scam.
Avoid Using Unsecured Wi-Fi Networks
Public Wi-Fi is often targeted by cybercriminals. By logging into a public Wi-Fi, your data may be exposed, especially if you’ve signed into apps or accounts with sensitive information, such as your bank account.
Avoid conducting financial transactions over unsecured networks. If necessary, use a virtual private network (VPN).
Regularly Check Your Bank Statements
Be sure to keep an eye on your finances, even if you have no reason to believe you have been scammed.
If you spot anything unusual in your outgoings, alert your bank immediately, and they can start a bank fraud investigation.
Use Two-Factor Authentication
For certain apps and accounts, you may be able to use Two-Factor Authentication – also known as 2FA.
This requires a second verification step when trying to access your account, ensuring that all login attempts are actually made by you. This is one of the safest ways to protect yourself against banking scams.
How to Report Bank Fraud
Do you believe you’ve been scammed by a criminal impersonating your bank? All types of bank fraud must be reported to the relevant authorities to prevent it from happening to someone else in the future.
You should report any offline or online bank scams to:
- Your bank: Firstly, file a report with your bank. They will likely have a specific email address or contact number to report scams to, as this department will put extra security measures in place to ensure that this scammer cannot attack any more of their customers. They will also help to monitor your accounts for any further suspicious activity.
- Action Fraud: Next, you can report any bank scam to Action Fraud, the UK’s national reporting centre for fraud and cyber crime, and to the Financial Conduct Authority (FCA) ScamSmart.
- The police: Reporting your recent bank scam to the police will provide you with a crime reference number, which can be useful if you later decide to pursue legal support to claim compensation.
- A trusted solicitor firm: If you’ve lost money, CEL Solicitors can help you pursue a claim to recover your funds. We have experience dealing with a wide range of banking scams and a strong track record of success.
Protect Yourself from Offline and Online Bank Fraud with CEL Solicitors
At CEL Solicitors, we understand the distress and frustration that comes with banking fraud. You might feel angry, embarrassed or unsure of what to do next, but we’re here to help. Our expert team of fraud and bank scam solicitors has supported countless individuals through this very situation, helping them to recover both their money and their peace of mind.
We work on a no-win, no-fee basis, which means you won’t pay a penny unless your case is successful, and you’ve received your compensation. We believe everyone deserves justice, regardless of their circumstances, and we’re relentless in our fight to secure it for you.
You do not have to go through this alone. Reach out today for clear, compassionate advice and dedicated support.
Call us on 0330 057 2286 or submit your details to take the first step towards recovery.
