I’m a scam expert – how to avoid the fraud trap that could cost you £60k

CROOKS are after your cash and if you’re not careful they could empty your bank account and steal all your money.

One fraud expert has revealed the biggest trick you can fall for – and how to avoid it.

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Paul Davis, director of fraud prevention at TSB, told The Sun that the biggest type of scam the bank sees is impersonation fraud.

“Half of the money we refund is on impersonation fraud,” he said.

“It’s common for people like me to say that criminals are always changing their tactics.

“But this type of fraud is still prevalent and, in fact, is getting worse – the breadth of impersonations is growing.

An impersonation scam is where fraudsters pretend they are from a well-known company or service, from banks and delivery companies, to Amazon and even the police.

An estimated £2billion was lost to fraud over the past year and this type of scam accounts for a quarter of all cases.

And anyone can be targeted and Paul is no stranger to these scam calls and messages himself, having received a text just the other day pretending to be from Royal Mail.

Here’s how it works and how to avoid it.

How impersonation scams works

In this type of scam, criminals will try and get you to share personal and financial information via email, call or text messages.

They are often extremely convincing and often tap into recent trends or fears to seem more realistic.

For example, since the pandemic, there are more fraudulent messages pretending to come from the NHS.

Criminals are now also capitalising on the cost of living crisis, pretending to be from energy firms in an attempt to steal your cash.

Paul said: “It’s an indication of how reactive fraudsters are, jumping on the latest issue to make the scams more realistic.”

“Especially now, with the cost of living crisis, no one can afford to lose these amounts of money.”

But impersonating your bank is still one of the most common versions of this scam.

And while the average amount lost is £4,000 per case – it can be a lot more.

What to watch out for

By pretending to be your bank, a criminal is trying to extract your card details to go on a spending spree, or will get you to transfer your entire savings, leaving you with nothing.

Paul recently saw one case of a person who lost £60,000.

He said: “In this case, the criminals convinced the victim to move all their money to a new accounts.”

The fraudsters did all the things that banks say and do to make the victim think they were genuine.

“The premise behind the scam is you’re told your money needs to be moved to keep it safe from fraud. But it’s the exact opposite,” said Paul.

The scammers often pretend to be from the fraud department of the bank, tricking you into believing that there’s a serious problem and that you need to act quickly.

They will say you shouldn’t share what you’re doing with anyone, and that you mustn’t tell others at the bank as it’s “part of a wider investigation”, Paul warned.

“These can be incredibly complex and sophisticated and it can be very hard to tell a genuine call from a fake one,” he said.

So how can you avoid it? Here are Paul’s top tips:

Hang up

“Never engage with calls out of the blue. Be suspect about them all,” Paul said.

“If you get a link or text message, don’t click. To verify it’s real, look up the contact yourself.”

He recommends using the official app where possible. For example, if you get a text about a delivery, check the Amazon or Royal Mail app or website, where you can track your package with the knowledge it’s legit.

A recently launched fraud hotline lets you can dial 159 and get put through to the real organisation, or report a scam.

It’s a joint effort by banks, telecoms and tech firms to tackle fraud and works like 111 for the NHS.

You can see if your bank and phone provider is part of it here.

Don’t rush

Anyone worried about missing an important message shouldn’t worry – a real company should never try and rush you into doing something.

“No genuine organisation will mind if you take the time to establish that they are legitimate,” Paul adds.

“But because households are stretched and looking to cut bills, people want to act quickly and criminals thrive on this.

“If there is any conversation about moving money or sharing bank details, this should be a big red flag.”

This is especially the case when it comes to banks. A bank will NEVER ask you to do something if they think you’ve been a fraud target – they can do it themselves, like stopping your card if the details have been compromised.

Paul said: “No bank will ever ask you to move money to another account. Genuine organisations will not ask you to so something yourself.

“Some fraud can be difficult to spot, especially over the phone. Think, what is it that you’re being asked to do.”

If your bank is asking you to move money, think scam.

Protect yourself

There are steps you can take to protect yourself from scams too, especially if you or someone you know is vulnerable.

“Unfortunately there are criminals that trade information. And even have things called a suckers list -a list of people that have fallen for scams in the past,” said Paul.

So be careful of which websites and newsletters you sign up for and give information to.

Make full use of tools on your email and smartphone that can help you fight fraud, such as settings that filter out spam email messages or block calls from unknown numbers.

Contact your phone provider as it’s likely to have an add-on service where its screen calls for you.

Paul also encourages people to talk openly about it, and the elderly or vulnerable to have a buddy to sense check calls with.

He said: “If you get a call out of the blue. Don’t do anything until you’ve contacted someone else.

“Even just a delay can mean that criminal gives up, but it’s also a healthy habit to get into. Someone’s else’s perspective can make all the difference.”

What to do if you think you’ve fallen for a scam

Paul encourages anyone who thinks they have been a victim of a crime not to stay silent.

He said: “The best thing to do is contact your bank. Firstly, it can help protect you so no more money leaves your account.

“Secondly, the sooner you contact it, the more likely it is that the money can be recovered.”

Not only can this help you recover the money, it stops the cash getting in the hands of criminals.

Many victims don’t report a fraud or tell family because of embarrassment – a myth that needs busting said Paul.

“There’s no shame in it. If you were a victim of a mugging on the street you wouldn’t be criticised for not knowing karate,” he said.

You can use the 159 number to be put through to bank fraud teams.

Or you can contact your bank directly. The quickest and easiest way to do this is by calling the number on the back of your bank card.

You can report fraud and cyber crime to Action Fraud either online by calling 0300 123 2040.

“Impersonation fraud is rife in the uk and everyone needs to be aware of the dangers and of contact that comes out the blue,” said Paul.

This post first appeared on thesun.co.uk