Scamwatch: banking fraud

Consumers urged to ignore bank transfer requests...

Updated: 
Woman on the Telephone

Stay one step ahead of the fraudsters with our series of articles giving you the lowdown on the scams they use to trick people out of their hard-earned cash - and how to avoid being taken in by them.

This week, we take a closer look at a banking scam that has separated many account holders from their hard-earned cash.

How does it work?
Consumers are being urged to be on their guard against fraudsters who call up posing as bank staff reporting a security breach and advising them to move their money into a "safe account".

Research from the British Bankers' Association (BBA) indicates that around one in 10 people would fall for this scam if targeted, even though a bank would never suggest a transfer of this kind.

Fiona McEvoy of the BBA said: "It is important that people of all ages know the language used by these fraudsters so that they can avoid being scammed.

"A bank would never ask you to transfer funds into a so-called 'safe account', even if there has been a security breach."

How can I avoid being caught out?
The best way to avoid being taken in by this scam is to ignore any transfer requests, even those that appear to come from your bank.

The BBA's Know Fraud, No Fraud campaign also advises consumers to look out for things that bank staff will never do.

These include asking for your full Pin or your online banking password over the phone or via an email, asking you to authorise the transfer of funds to a new account or sending someone to your home to collect cash, bank cards or anything else.

I've been defrauded. What should I do?
The first thing to do if you think you have been caught out by banking fraud is to inform your current account provider and make sure your account is secure.

You should also report the scam to Action Fraud, which you can contact on 0300 123 2040. McEvoy said:

"If you suspect you have become the victim of fraud please contact Action Fraud and your bank as soon as you can. Specially-trained staff will be able to advise on what to do next."

Revealed: The 10 most common scams

Revealed: The 10 most common scams


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