Bank-fraud activity jumped by 66% between July and December 2020. As Mohamed Dabo reports, Barclays has warned against the most frequent data frauds and scams that banks and their customers must watch out for
What follows are among the most common tricks currently used by fraudsters, according to Barclays. The bank also advises customers on ways to protect themselves against the deception.
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However, as fraudsters constantly come up with new ways to foment digital robbery, banks and their customers must for ever remain vigilant.
Fake social media ads
A tempting offer or deal pops up on your screen when you’re scrolling through your social media feed – but the too-good-to-be-true ad is exactly that and leaves you out of pocket.
How it could happen to you
You see eye-catching ‘discount’ adverts for items in your social media feed based on your recent internet searches or online activity. They can often feature the familiar face of a celebrity or TV star endorsing a product or service.
Similarly, a post on your social media account promises huge or ‘guaranteed’ investment returns. Only if you act quickly will you be able to take advantage, it says.
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By GlobalDataYou click on the post and are then taken to a separate website touting the offer/opportunity.
It asks for your financial details and suggests payment by bank transfer. The goods never arrive, or service never materialises.
Stop, think and act
Protect yourself from being scammed with a healthy dose of scepticism whenever you see pop-ups in your social media feeds.
For example, if your search for a new designer handbag triggers ads which tout incredible offers, ask yourself how real could these discounts be? If they’re too big to believe, they’re probably fake.
If an ad takes you to a website, examine its web address very carefully and compare it with that of the official brand – if it doesn’t match or seems an unlikely fit, steer clear.
When a TV presenter’s photo appears to suggest they recommend a high-risk investment or particular product, always double-check their official social media or website.
Look online to see if others have expressed similar concerns – spelling errors and image quality are warning signs and ask yourself if the image looks as if it’s been digitally altered.
And if tempted by promises of easy profits, be suspicious – do your own research and double-check the firm behind them is legitimate by using the Financial Conduct Authority (FCA) Financial Services Register.
The ‘phishing’ email scam
Fraudsters are always fine-tuning the ‘phishing’ trick – an email which pretends to be from an authoritative source such as a bank, the taxman, a regulator, or official company but is in fact a fake.
As well as better spelling and grammar, they’ve improved the way it looks with logos that seem authentic and official phone numbers.
However, the ruse is the same – click on the link contained in the email and you’ll be taken to a fake website where you run the risk of giving away your financial details.
Alternatively, you expose your computer to rogue software that helps the conmen steal your name, address and bank details and other personal information.
How it could happen to you
You receive what looks like a genuine email from a reputable organisation – your bank, a well-known firm, government body or regulator, say.
It asks you to click a link for further details where you’re then tricked into sharing personal information, bank account details and even passwords.
Alternatively, you may be prompted to download a form or file. This so-called ‘malicious software’ (malware) then gives fraudsters access to your details and money.
Stop, think and act
If you receive an unexpected email or one that you have no idea where it’s from, don’t open it – delete it. Never click on a link or open any attachment in it.
Always make sure your anti-virus and anti-spyware software are up to date, and your firewall is strong.
Bank transfer scam
Fraudsters call you on the telephone, impersonating someone from your bank, police, a utility, or service provider. They trick you into divulging personal financial information which they then use to gain access to your bank account and transfer money out.
This is also known as an ‘impersonator’, ‘vishing’ or ‘courier’ scam.
How it could happen to you
A call out of the blue – usually, but not always, to your mobile – alerts you to possible fraud on your account.
The caller typically claims to be a specialist from your bank’s fraud prevention department, a police officer, or an employee at a major service provider.
You’re told that scammers have been trying to access your account. In order to investigate, the caller asks you some standard bank security questions – maiden names, birthday dates or other personal numbers, for example.
You may be told this will help confirm any criminal activity or that it’s vital to move your cash urgently to a ‘safe account’.
To reassure you, the scammers may already have bits of info about you that they use – your name, address and phone number – which make the call feel more genuine.
After handing over personal info, the caller may also then tell you to read out a series of codes they send to your phone by text – these codes may be described to you as being an extra layer of safety or security.
The call then ends, often with a final request not to log in to your account for a matter of hours.
Various twists on this scam see you warned that your local bank staff are being investigated as part of a suspected fraud. To keep your account safe, you must withdraw the cash from it and then meet the alleged fraud prevention officer in person to hand it over.
The scammers may also tell you to lie to bank counter staff if asked what the money is for – to say it is for a family member, say, or to pay a bill for building work.
Or you may be advised that to prevent the fraud, a courier has been sent to your home address to pick up your bank cards and PIN for safekeeping.
Stop, think and act
We will never ask you to move your money to a ‘safe’ account. The police won’t either.
If you get an unexpected phone call from someone claiming to be from us or the police, hang up – wait for a few minutes or until the line is clear – and then call the number on the back of your bank card to report it. If you can, use another phone to do so.
Never disclose your PIN or hand over your bank cards to anyone. We will never visit your home address and ask you to give us your cards, PINs and personal details. The police won’t either.
If you accidentally share your details and later realise you’ve been duped, call your bank immediately. You should use a different phone to the one the fraudsters called you on.
This is because they can intercept your outgoing calls, even after you’ve ended the fraudulent call – so they could pretend to be your bank when you try to report them. The number to call should be listed on the back of your payment card.
The ‘smishing’ text message scam
Your inbox pings with a text message that appears to be from your bank, a major company or local authority warning you of fraud – and asking you to take urgent action.
You reply or call a given number and end up giving away details such as log-in passwords, your bank account details and other personal information that fraudsters can use to defraud you.
The term ‘smishing’ stems from the original name for a text, ‘SMS’ (short message service) and ‘phishing’.
How it could happen to you
You receive an unexpected text message from your bank, a number you’ve never seen before, or it seemingly comes from a major company, public body or authority such as a financial regulator.
It contains an ‘urgent’ message and asks you to take immediate action by clicking on a link to a website or calling a telephone number you don’t recognise.
If you click through, you’re asked to provide personal information, such as your bank account password and financial details.
These can then be used to steal cash from you or to commit identity fraud.
Call up instead and, once the conversation starts, you’re told that scammers have been trying to access your account. In order to investigate, the caller asks you some standard bank security questions – maiden names, birthday dates or other personal numbers, for example.
You may be told this will help confirm any criminal activity or that it’s vital to move your cash urgently to a ‘safe account’.
To reassure you, the scammers may already have bits of info about you that they use – your name, address and phone number – which make the call feel more genuine.
After handing over personal info, the caller may also then tell you to read out a series of codes they send to your phone by text – these codes may be described to you as being an extra layer of safety or security.
The call then ends, often with a final request not to log in to your account for a matter of hours.
Stop, think and act
Don’t click on any links, and – if it seems to be from your bank – always double-check any telephone numbers embedded in the text by visiting their official website.
If the text does appear to warn you of a genuine security concern, call your bank on the telephone number listed on the back of your card.
The social media ‘hack’ into your account
Fraudsters hack into social media accounts and impersonate their owners. If you’re listed as a friend, family member or colleague on the account, they get in touch and plead for your help in an emergency.
You’re tricked into sending money or divulging your bank details to save them.
How it could happen to you
You’re contacted by someone you know who says they suddenly and desperately need money. Often, they can seem embarrassed or apologetic to make it feel more genuine.
The bogus cause is usually (but not always) a recent overseas accident, which means that hospital fees need paying, or a hold-up overseas which has triggered a need for a cash lifeline.
They ask you to transfer money to an account, or to share your bank details to cover the costs.
Stop, think and act
Always check that an urgent message like this hasn’t come from a hacked account. Speak to the real person directly to see if their request is genuine.
