4 days ago
What is the 'bank spoofing' scam and why is it on the rise?
One in seven people in the UK have lost money to fraud in the last 12 months, a new survey has revealed.
The survey from TransUnion's 2024 Consumer Report found that 43% of UK adults claim they have been targeted by online, email, phone call or text messaging fraud attempts in the last three months.
On average, consumers lose £1,400 per scam, with only 18% of these victims recovering all of their money. In November 2024, fraud prevention service Cifas outlined that in the UK, people lost a total of £11.4 billion to scams in the previous 12 months, up £4bn from the year before.
Simon Miller, director of policy strategy and communications at Cifas described the rise as "worrying", telling Yahoo News it's "absolutely critical that industry acts quickly and decisively to protect the public."
The most common types of fraud in the UK include online shopping, impersonation fraud and data fraud.
But recently, a new form of fraud known as spoofing has been deceiving Brits, and it's on the rise as more and more people rely entirely on online banking to handle their finances.
'Spoofing', also known as remote bank fraud or vishing, is a way for scammers to take your money or bank details - usually through posing as your bank.
A common method used is Authorised Push Payment (APP) fraud. APP happens when an individual authorises a payment to a scammer, who they were made to believe is a legitimate person, such as a bank representative or the police.
These scammers may have previously obtained their targets' details through data breaches, phishing attacks or even by intercepting people's data when they are using public wifi, then using it to convince victims they are a legitimate business.
In 2022, a common way this type of fraud occurred was through iSpoof, a fraud website that allowed scammers to make calls using the caller IDs of banks - ultimately tricking the victims into trusting them.
Anti-fraud website Action Fraud said that during the height of iSpoof's activity, almost 20 people per minute were being contacted by scammers who were using the site while hiding behind false identities.
In total, almost 200,000 potential victims were directly targeted through iSpoof.
APP fraud has increased significantly over the past few years, reaching an accumulated loss of almost £460 million in 2023. Last year, however, the number of reported APP cases reduced by 24% and the total losses reduced by 2% to £450 million.
Experts suggest these figures show that although there are fewer victims, those who are targeted have more money stolen from them.
According to Cifas, the progression of AI technology has contributed to the increasing threat of fraud, as it allows victims to be targeted on a larger scale and at a faster pace.
Miller said, "everyone has a role to play in the fight against fraud", cautioning people to "stay alert" and "report anything suspicious".
"Businesses, too, must step up. By sharing data and intelligence, investing in fraud prevention solutions, and educating customers, we can stay one step ahead of criminals and safeguard both people and organisations."
A sense of urgency
Usually, these scammers may have a sense of urgency in their voice, pressuring you to 'act quickly'. In this case, they may do it to make you panic or rush into following their instructions without taking time to question them or process the information enough to raise suspicion.
They are asking you for your financial or personal information
UK Finance says that a genuine bank will never call you out of the blue to ask for your PIN, password or to move any money. In most cases, if there is suspicion of a compromised bank account, your bank may just freeze your account until they can speak to you.
The caller asks you to give them remote access to your computer
In this situation, hang up immediately. It could be helpful to call the number on the back of your physical bank card, or go to your local bank branch if it is accessible at the time.
You can also call 159 to get through to your bank, or 101 for the police.
If you have been a victim of spoofing, you should report it immediately to Action Fraud or your actual bank, using the number they provide on their official website or on the back of your physical card.
There are also a few other steps you can take, including:
Try to take steps to avoid the risk of further fraudulent activity by changing your passwords and freezing your card.
Look into your bank's reimbursement policy. For APP fraud, the new reimbursement rules came into effect on 7 October 2024.
Make sure you keep all records of the communication you had with the scammer.
Monitor your credit report and check your credit rating to see if any other suspicious purchases are made in your name.
You could also place a Fraud Alert on your credit file to flag to lenders that extra precaution is needed due to a risk of identity theft.
The government's website also provides information about what to do if you have been a victim of fraud.
