Bank and payment fraud to watch out for in the new year

Banking and payment scams have become an increasingly common way for fraudsters to access people’s personal and financial information in recent years.

Earlier this year, a report from UK Finance found that losses from fraud at UK banks rose 8 percent overall to £1.3 billion. It also revealed that losses from so-called authorized push payment scams – scams where a customer is tricked into making a payment – have risen 39 per cent to £583 million.

Britons are now being urged to watch out for banking scams in 2023, whether they’re offered an online ‘bargain’ or a ‘get-rich-quick’ scheme.

jenny ross, Which? Money Editor, said: “Scammers are relentless when it comes to wanting our personal information and ultimately our money.

“And while their tactics will no doubt continue to evolve, we think these scams are the most important ones to watch out for.

“Banks will never ask you for personal information, nor will they try to rush you into making a decision.

If this happens to you – whether it’s by text, email or phone – take a step back and think about what they’re asking. If it seems too good to be true, it usually is.”

Keep reading to learn about five common banking scams Which? warns people to pay attention in the new year:

Money mule requests

Money mule requests happen when people, knowingly or unknowingly, allow a criminal to use their bank account to move stolen money.

These often appear on social media posts or in emails.

Tactics used include transferring money “wrongly” that people are asked to transfer back to another bank account, asking people to apply for credit or debit cards on behalf of someone else, or convincing people to transfer money to their invoice has been sent (discount) as a “favor”.

Violations for this type of scam can lead to up to 14 years in prison, Which? said.

Card theft

Which? warns consumers to remain vigilant by closely monitoring financial accounts and personal credit reports and notifying banks immediately of anything unusual.

Most banks offer free balance and payment text or email alerts. Use ATMs in bank branches whenever possible, as they are less likely to have been tampered with, the consumer group said.

Fake apps targeting bank accounts

Which? said people should read app and developer reviews as they can provide a clue as to their legitimacy.

Parody calls or text messages

A common technique used by fraudsters is to impersonate legitimate companies, often banks.

Scammers can also automatically call with pre-recorded messages inviting people to press numbers on the keypad to talk to them about an issue, such as a suspicious payment.

Criminal gangs often already have personal data on victims, lending credibility to the scam.

Fake texts are also a way to trick people into clicking links that may seem legitimate at first glance.

Which? said people should never just trust the caller ID that pops up during a call. Banks will never ask to hand over personal information over the phone. If you’re concerned about the authenticity of a message, contact your bank or card issuer using a trusted method.

Online purchase scams

Criminal gangs pay online for false or misleading advertisements in an attempt to lure in unsuspecting victims, often by offering low prices on valuable items, such as cell phones or laptops.

Warning signs of a fake website can be spelling and grammar mistakes and a lack of contact information.

Which? suggested that people should stick to trusted merchants and remember that paying by bank transfer may offer less protection than paying by card.

With additional reporting from PA