Bank Scams UK — How to Spot, Avoid, and Report Fraud

Bank scams cost UK victims over £1.2 billion annually. Knowing how to spot and avoid fraud is essential for protecting your money.

Common Bank Scams in the UK

Scam Type	How It Works	Warning Signs
Impersonation	Pretends to be your bank	Urgent requests, asks for PIN
Push payment	Tricks you into transferring money	Pressure to act fast
Phishing	Fake emails/texts with links	Suspicious sender, poor grammar
Romance	Builds fake relationship, asks for money	Never met in person
Investment	Promises unrealistic returns	Too good to be true
Purchase	Fake online seller	No reviews, pressure to pay

Impersonation Scams

How They Work

1. You receive a call/text claiming to be from your bank
2. They say there’s suspicious activity on your account
3. They ask you to confirm details or move money to a “safe account”
4. They already have some of your information to sound legitimate

Red Flags

Legitimate Bank	Scammer
Will never ask for full PIN	Asks for PIN or password
Won’t ask you to transfer money	Urges you to move money
Will let you call back	Discourages you from hanging up
Uses official app notifications	Sends links via text
Has time for questions	Creates urgency

What Banks Will Never Ask For

• Your full PIN
• Your online banking password
• One-time passcodes sent to your phone
• To transfer money to a “safe account”
• Remote access to your computer
• To hand over your card to a courier

Phishing Scams (Emails & Texts)

Spotting Fake Messages

Element	Legitimate	Suspicious
Sender address	[email protected]	[email protected]
Greeting	Uses your name	“Dear Customer”
Grammar	Professional, correct	Spelling errors
Links	Match official website	Slightly wrong URLs
Urgency	Informational	“Act now or lose access”

Checking Links Safely

1. Hover (don’t click) to preview the URL
2. Look for exact domain: hsbc.co.uk ✓ vs hsbc-secure.co.uk ✗
3. Go directly to your bank’s website instead of clicking
4. Use your bank’s official app

Example Phishing Text

“HSBC: We’ve detected unusual activity. Verify your account immediately: hsbc-security-alert.com/verify”

Why it’s fake:

• Creates urgency
• Link isn’t the official HSBC website
• Banks don’t ask you to verify via text links

Push Payment Scams (APP Fraud)

These are the most costly scams because you’re tricked into making the transfer yourself.

Common Scenarios

Type	The Story	Real Target
Conveyancing	“New bank details for house deposit”	Home buyers
Invoice	“Our bank details have changed”	Businesses
CEO fraud	Boss urgently needs money transferred	Employees
Safe account	“Your account is compromised, move money”	Everyone
HMRC	“Pay this tax bill immediately”	Everyone

Protection Steps

1. Always verify new payment details by phone using a known number
2. Question urgency — legitimate requests allow time to check
3. Use Confirmation of Payee — checks the account name matches
4. Set up new payees when calm — don’t rush

Investment Scams

Warning Signs

Legitimate Investment	Investment Scam
Explains risks clearly	Guarantees high returns
FCA registered	Unlicensed or fake registration
No pressure	“Limited time offer”
Verifiable track record	Vague or fake testimonials
Regulated communication	Cold calls, social media DMs

How to Check

1. Visit the FCA Register: register.fca.org.uk
2. Check the Warning List: fca.org.uk/scamsmart
3. Verify contact details match the FCA register (scammers clone real firms)
4. Be sceptical of returns over 8-10% annually

Crypto Scams

Red Flag	Example
Celebrity endorsement	“Elon Musk’s secret Bitcoin system”
Guaranteed returns	“Double your crypto in 30 days”
Social media approach	DMs about trading opportunities
Fake platforms	Professional-looking but fake exchanges

Romance Scams

Pattern

1. Meet online (dating app, social media)
2. Relationship develops quickly
3. They can never video call or meet
4. Financial emergency arises
5. Requests for money begin

Warning Signs

Behaviour	Why It’s Suspicious
Professes love very quickly	Building emotional dependency
Profile seems too perfect	Likely using stolen photos
Can’t video call	Hiding real identity
Has unusual job/location	Military abroad, oil rig worker
Financial emergencies	Testing if you’ll send money

Use reverse image search on profile photos to check if they’re stolen.

Purchase Scams

Spotting Fake Sellers

Legitimate Seller	Fake Seller
Accepts secure payment	Wants bank transfer only
Has verifiable reviews	No reviews or fake ones
Contact details available	Won’t share real information
Realistic prices	Suspiciously cheap
Professional website	Poor quality or very new site

Safer Online Shopping

1. Use credit cards — Section 75 protection
2. Buy through platforms — eBay, Amazon buyer protection
3. Avoid bank transfers — No protection if scam
4. Research the seller — Check reviews, company details
5. If it’s too cheap — It’s probably fake

What to Do If You’ve Been Scammed

Immediate Steps

Timeframe	Action
Immediately	Call your bank to stop/reverse payment
Within 24 hours	Report to Action Fraud
Urgently	Change passwords, check other accounts
ASAP	Gather evidence (screenshots, messages)
Within days	Check credit report for suspicious activity

Contacting Your Bank

1. Call the fraud helpline (on back of card or bank website)
2. Explain what happened
3. Ask them to try recalling the payment
4. Request a fraud case reference number
5. Follow up in writing

Reporting Fraud

Organisation	Contact	For
Action Fraud	0300 123 2040	All fraud and cyber crime
Your bank	Card/website number	To stop payments
FCA	fca.org.uk/consumers	Investment scams
Police (101)	If scammer known locally	In-person fraud

Getting Your Money Back

Unauthorised Transactions

If someone made transactions without your permission:

Situation	Bank’s Obligation
Card stolen	Full refund
Details phished	Usually full refund
You gave details negligently	Possible partial refund
Gross negligence	May refuse refund

Authorised Push Payment (APP) Scams

For scams where you were tricked into sending money:

Factor	Effect on Refund
Bank has signed APP code	Better chance of refund
You ignored warnings	My reduce refund
Confirmation of Payee failed	Supports your case
You verified independently	Shows due diligence

If Your Bank Refuses

1. Request a final response in writing
2. Complain to the Financial Ombudsman Service
3. Provide all evidence of the scam
4. FOS decision is binding on the bank

How to Protect Yourself

Security Basics

Action	Why It Helps
Use strong, unique passwords	One breach won’t affect all accounts
Enable two-factor authentication	Extra layer of protection
Set up transaction alerts	Spot unauthorised activity fast
Review statements regularly	Catch fraud early
Keep software updated	Patches security vulnerabilities

Phone Call Protection

1. Let unknown calls go to voicemail
2. Register with TPS (Telephone Preference Service)
3. Never confirm details to incoming callers
4. Call back on a known number if uncertain
5. Use a different phone or wait 5 minutes

Online Banking Safety

Do	Don’t
Use your bank’s official app	Click links in emails/texts
Check URL is correct	Save card details on new sites
Log out after use	Use banking on public WiFi
Use strong password	Share login details

Summary

Bank scams are sophisticated, but you can protect yourself by:

1. Never sharing PINs, passwords, or passcodes
2. Verifying any request by calling back on a known number
3. Taking your time — urgency is a red flag
4. Using secure payment methods with buyer protection
5. Reporting immediately if you suspect fraud

If you’re scammed, act fast — contact your bank immediately to maximise chances of recovering your money.