UK consumers have fallen victim to scams worth £1.17 billion in 2024, with scammers adopting new technologies to con people out of their money. The most convincing scams so far in 2026 involve fake digital wallets and impersonation attempts, including one where fraudsters adopted Which?'s logo and branding.
One of the most common scams involves a thief linking your credit or debit card details to a digital wallet on a mobile phone. This allows them to spend freely online or in person until they hit your credit limit or drain your balance.
The process begins with a 'hook', which can be a phishing text or a social media advert for a bargain deal. The scammer then sets up a digital wallet on their phone, triggering your bank to send a one-time passcode (OTP) to your device. They input this code, claiming it's needed to verify the purchase.
Industry data shows that individual banks lose between £2m and £6m annually to these scams, with costs potentially passed onto consumers via higher interest rates or reduced account perks.