Impersonation scams, where fraudsters pose as trusted organisations such as banks, are reportedly rife and costly. Santander has stated that its customers have lost over £3 million to bank impersonation scams so far this year, with an average individual loss of £6,000.
Lloyds Bank figures indicate that fraudsters impersonating representatives of organisations including the police, banks, HM Revenue & Customs, and phone providers stole 10% more from its customers in the year to the end of June compared to the previous 12 months. While the number of customers reporting a scam to Lloyds fell by 3% this year, the average amount stolen rose by 10% to £3,516.
These scams often begin with a text message from what appears to be a bank, informing the recipient of a new payment setup and asking them to get in touch if they do not recognise it. Elaine Ross, head of fraud analytics at Nationwide building society, noted that people are often more sceptical of calls than messages. Upon calling the provided number, victims are told their account has been compromised and are persuaded to transfer money to a 'safe account' or hand over their debit card for replacement.
Chris Ainsley, head of fraud risk management at Santander UK, advises individuals to trust their instincts if something seems suspicious. He recommends contacting banks directly using a trusted number, such as the one on the back of a debit card. Nationwide encourages customers to hang up and call back if they become suspicious during a call, even if it means joining a queue.